Visual Basic (Declaration) | |
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Public Overloads Shared Function MoneyFlowIdxOverPeriod( _ ByVal sc As SeriesCollection, _ ByVal lengthOfPeriod As Integer _ ) As SeriesCollection |
Visual Basic (Usage) | ![]() |
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C# | |
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public static SeriesCollection MoneyFlowIdxOverPeriod( SeriesCollection sc, int lengthOfPeriod ) |
Parameters
- sc
- A collection of series objects. For example, to evaluate this indicator for two series you will need to pass a series collection containing this two series.
- lengthOfPeriod
- An integer which represents the length of the period over which the indicator will be iteratively evaluated.
Exception | Description |
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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. |
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.
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.
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: