Money Flow Index (MFI)
Web3 / technical analysis
The Money Flow Index is a momentum indicator that combines price action with trading volume to assess buying and selling pressure in the market. Often called the "volume-weighted RSI," MFI calculates positive and negative money flow based on whether the price moves up or down relative to the previous period, weighted by volume. The resulting oscillator ranges from 0 to 100, where readings above 80 suggest overbought conditions and readings below 20 suggest oversold conditions. MFI is particularly valuable for confirming price trends and identifying potential reversals when price and MFI diverge, as this divergence often precedes significant market moves. Example: When analyzing Solana, a trader might notice SOL price reaching new highs but MFI failing to confirm with similarly high readings—this bearish divergence often precedes a pullback or reversal on daily charts. Why it matters for crypto technical analysis: MFI incorporates volume into momentum analysis, revealing whether buying or selling pressure genuinely supports price moves in crypto markets where volume manipulation and whale activity significantly impact price discovery.
Explore the full Web3 Glossary — 2,062+ expert-curated definitions. Need guidance? Talk to our consultants.