MFI (Money Flow Index) Complete Explanation + Differences from OBV 2026

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What is MFI (Money Flow Index)?

MFI (Money Flow Index)

The Money Flow Index (MFI) is RSI with volume. Unlike RSI, which is calculated based on price alone, MFI considers Price × Volume (Fund Flow).

General RSI: reflects only price changes 
MFI: Reflection of price change × trading volume 
→ MFI = “RSI weighted by volume”

MFI calculation principle

Step 1: Typical price = (high price + low price + closing price) / 3

Step 2: Fund Flow = Typical Price × Volume 
- If the typical price > is higher than the previous day: positive (+) fund flow 
- If typical price < lower than previous day: negative (-) fund flow

Step 3: Funds Flow Ratio = Sum of 14-day positive funds flows / Sum of 14-day negative funds flows

Step 4: MFI = 100 - (100 / (1 + Funds Flow Rate))

Results: Displayed in the same 0-100 range as RSI

MFI vs RSI

Compare	MFI	RSI
Including trading volume	Yes	No
Force movement detection	Strong	Weak
Computational Complexity	High	low
signal frequency	Less frequent (volume filter)	more frequent

When MFI is more advantageous than RSI: When the power detects accumulation and selling accompanied by trading volume

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MFI Core Level

section	meaning
Over 80	Overbought (too much money coming in)
50~80	bullish
20~50	bearish
Under 20	Oversold (too much money missing)

MFI Signals and Strategies

Signal 1: Overbought/oversold reversal

MFI 80 or higher → Shooting star appears: short signal 
MFI 20 or less → Hammer shape appears: long signal

Signal 2: MFI divergence

New price point + MFI high point falls → Price maintained as forces sell → Forecast of decline New price low + MFI low rise → Price supported by forces buying → Expected rise

Combination of OBV and MFI

OBV Bullish Divergence + MFI Bullish Divergence Simultaneously: 
→ Double confirmation of power accumulation → Very strong long signal

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