MoneyFlowIdxOverPeriod(Series,Int32) Method

Evaluates the Money Flow Index (MFI) which measures the strength of money flowing in and out of a security over all periods for which sufficient data is provided.

[Visual Basic]
Overloads Public Shared Function MoneyFlowIdxOverPeriod( _
   ByVal s As Series, _
   ByVal lengthOfPeriod As Integer _
) As Series

[C#]
public static Series MoneyFlowIdxOverPeriod( 
   Series s,
   int lengthOfPeriod
);

Parameters

s: An series where the first element is the high in the last trading period, the second term is the high in the previous period and so on.
lengthOfPeriod: An integer which represents the length of the period over which the indicator will be iteratively evaluated.

Exceptions

Exception	Description
ArgumentException	Thrown if any elements from the arrays high, low, close or volume are strictly negative, or if the length of the arrays is not equal or the lengthOfPeriod is grater than the length of the array high.

Remarks

The MFI is related to the Directional Movement Indicator of Wellas Wilder, but the MFI system also takes into account the volume as well as the price action.

Interpretation

Divergence of the indicator within a continuing trend indicates that a reversal is imminent. The MFI also is a good means to signal market tops and bottoms. A reasonable rule is a market top is given more significance when the MFI is above 80 and a market bottom is given more significance when the MFI is below 20.

Evaluation

The Money Flow Index (MFI) is evaluated over a given user defined number of trading periods. The evaluation of the MFI follows the below steps:

Evaluates the Money Flow on each day. The Money Flow is the product of the Typical Value Indicator (see Filters) for that day and the volume.

Each day is either classified as either a Positive Money Flow day, Negative Money Flow day or no Flow day. If the typical price increases then the day is a said to be a Positive Money Day, if it decreasing then it is said to be a negative money day and if it stays then same then it is said the be a no flow day.

The Positive Money and Negative Money Flow's are calculated by summing the Money Flow over the Positive Money Flow Days or the Negative Money Flow days respectively.

The Money Flow Index (MFI) is evaluated by dividing the Positive Money Flow by the Negative Money Flow.

See Also

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