The MFI price indicator for MetaTrader4 is an oscillator that deploys both price and volume in gauging buying and selling pressures in the market.
The Money Flow Index (MFI) is also known as volume-weighted RSI and was designed by Gene Quong and Avrum Soudack. The MFI_price indicator starts with the usual price for every period. MFI_price is positive when the usual price surges (bullish pressure) and negative when the usual price drops (bearish pressure).
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Example Chart
The MFI price indicator can be interpreted akin to the RSI. The major difference between the two is volume. Since volume is added to blend, the MFI_price indicator does act somewhat differently to the RSI. Volume is said to lead to prices according to theories. We know the RSI momentum oscillator already leads prices. Hence adding volume to it can obviously increase its lead session.
The MFI price indicator always has its value fluctuating between 0 and 100, which is a resultant of a ratio of positive and negative money flow that is plugged into the RSI formula. This makes the MFI_price indicator one of the most suitable momentum oscillator that can be used to identify reversals and extreme price.
When the value of the MFI_price indicator is over 80, it suggest that price is overbought, while a reading of below 20 is indicative of an oversold market. The MFI_price indicator can simply continue to buy when greater than “80” and continue to sell when less than “20.”
The creators of the MFI recommended that these extremes be expanded to further yield signals. MFI_price values above “90” can be said to be truly overbought, while values below “10” is said to be oversold.
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Download the “MFI_price.ex4” MT4 indicator
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart window indicator
Customization options: Variable (ExtMFIPeriod, Applied_price), Colors, width & Style.
Time frames: 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: momentum oscillator