Money Flow Index (MFI)
Returns the Money Flow Index, a volume-weighted momentum indicator similar to RSI but incorporating volume data. MFI is sometimes called "volume-weighted RSI."
How MFI Works
MFI oscillates between 0 and 100:
- MFI > 80: Generally considered overbought (selling pressure may increase)
- MFI < 20: Generally considered oversold (buying pressure may increase)
- MFI = 50: Neutral
MFI vs RSI
| Feature | MFI | RSI |
|---|---|---|
| Volume | Uses volume | Price only |
| Focus | Money flow | Price momentum |
| Signals | Earlier signals | Standard timing |
Parameters
| Parameter | Description | Default |
|---|---|---|
| Symbol | Stock ticker symbol | Required |
| Days | Number of periods for calculation | 14 |
| StartDate | Calculate MFI as of this date | Today |
Examples
=MoneyFlowIndex("AAPL")=MoneyFlowIndex("AAPL", "14")=MoneyFlowIndex("MSFT", "10")=MoneyFlowIndex("SPY", "20")=MoneyFlowIndex("AAPL", "14", DATE(2024,1,15))=MoneyFlowIndex(A1)When to Use
- Identify overbought/oversold with volume confirmation
- Detect divergences between price and money flow
- Confirm price trends with volume analysis
- Volume-based technical analysis
- Generate trading signals incorporating volume
When NOT to Use
Common Issues & FAQ
Q: Why is MFI returning "NA"? A: Check that:
- The symbol is valid and has volume data
- There is sufficient historical data for the period
- The stock is actively traded (low-volume stocks may have issues)
Q: How does MFI differ from RSI? A: MFI incorporates trading volume, making it sensitive to both price changes and trading activity. High-volume days have more impact on MFI than on RSI.
Q: What thresholds should I use? A: Standard thresholds are 80 (overbought) and 20 (oversold). Some traders use 70/30 for more signals.
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