What is Money Flow Index? Best Forex Trading Indicators

What is Money Flow Index?
 
      Money Flow Index is the one of the indicator, which is used to indicate the rate at which money is invested into a currency and then withdrawn from it. Creation and explanation of the MFI indicator is same as Relative Strength Index. The main difference, in MFI volume is more important. If MFI value is over 80, then market is in high level that the same it is under 20, market is low level.
 
MFI is in four stages that are as follows.

•     Typical Price(TP)
•     Money Flow(MF)
•     Money Ratio(MR)
•     Money Flow Index(MRI)

Calculation:
 
          TP = (HIGH +LOW +CLOSE)/3
          MF = TP * VOLUME
          MR = Positive Money Flow (PMF)/Negative Money Flow (NMF)
          MFI = 100 - (100 / (1 + MR))
 
Positive Money Flow - Sum of positive money flows for a particular selected time period
Negative Money Flow - Sum of negative money flows for a particular selected time period