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Monday, October 29, 2007

Money Flow Index

Overview...

The Money Flow Index (MFI) is similar to the Relative Strength Index (RSI) in calculation and interpretation except that volume is used to weigh the average price values before summing the positive and negative money flows.

The MFI is normalized and plotted on a 0-100 scale. Readings over 80 are considered overbought and readings under 20 are considered oversold.

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