What Is a Fund Flow?

The Money Flow Index (MFI) measures when funds are invested in securities and recovered from the securities market. Technical specifications of the rate.

Money Flow Index

For the construction and interpretation of this indicator,
The calculation method of the capital flow indicator includes several steps. First we need to define a typical price for the period of study. .
TP = (HIGH + LOW + CLOSE) / 3
Then we calculate the amount of money flow:
MF = TP * VOLUME
If the typical price of the day is higher than the typical price of yesterday, then the capital flow index should be a positive number. If today's typical price is lower than yesterday's typical price, then the index of capital flow should be a negative number.
Positive capital flow is a sum of positive capital flow in a certain period of time. Negative capital flow is a sum of negative capital flow in a certain period of time.
Then we calculate the money ratio (MR) and divide the positive money flow by the negative money flow:
MR = Positive Money Flow (PMF) / Negative Money Flow (NMF)
Finally, we use the capital ratio to calculate the capital flow index:
MFI = 100-(100 / (1 + MR))

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