Money Flow Index
The MFI is a ratio of positive and negative money flow over time.
MFI(HLC, volume, n = 14)
HLC |
Object that is coercible to xts or matrix and contains High-Low-Close prices. If only a univariate series is given, it will be used. See details. |
volume |
Vector or matrix of volume observations corresponding to
|
n |
Number of periods to use. |
Money Flow (MF) is the product of price and volume. Positive/negative MF
occur when today's price is higher/lower than yesterday's price. The MFI is
calculated by dividing positive MF by negative MF for the past n
periods. It is then scaled between 0 and 100.
MFI is usually calculated using the typical price, but if a univariate series (e.g. Close, Weighted Close, Median Price, etc.) is provided, it will be used instead.
A object of the same class as HLC and volume or a
vector (if try.xts fails) containing the MFI values.
Divergence between MFI and price can be indicative of a reversal. In addition, values above/below 80/20 indicate market tops/bottoms.
Joshua Ulrich
The following site(s) were used to code/document this
indicator:
https://www.fmlabs.com/reference/default.htm?url=MoneyFlowIndex.htm
https://www.linnsoft.com/techind/money-flow-index-mfi
https://school.stockcharts.com/doku.php?id=technical_indicators:money_flow_index_mfi
data(ttrc)
mfi <- MFI(ttrc[,c("High","Low","Close")], ttrc[,"Volume"])Please choose more modern alternatives, such as Google Chrome or Mozilla Firefox.