The Money Flow Index is a volume-weighted RSI that measures buying and selling pressure by incorporating both price and volume data. It oscillates between 0 and 100, with readings above 80 considered overbought and below 20 considered oversold. Because it includes volume, MFI often provides earlier reversal signals than standard RSI, making it particularly effective for identifying exhaustion moves.
Oscillates 0-100 with overbought (80+) and oversold (20-) zones. Volume-weighted calculation makes it more sensitive than standard RSI. Positive money flow: volume on up periods. Negative money flow: volume on down periods. Divergences between MFI and price are powerful reversal signals. Default period is 14.
Enter long when MFI drops below 20 and then crosses back above it with a bullish reversal candle. Buy on bullish divergence — price makes a lower low while MFI makes a higher low. Look for MFI failure swings (fails to reach overbought, pulls back, then makes a higher high) as continuation signals. Enter when MFI confirms a price breakout by rising above 60 from neutral territory.
Exit longs when MFI exceeds 80 and begins to turn down, especially with a bearish reversal candle. Close positions on bearish divergence — price makes a higher high while MFI makes a lower high. Take profits at MFI extremes during parabolic moves. Trail stops while MFI remains above 50, exit when it breaks below.
15M, 1H, 4H, Daily
MFI's advantage over RSI is its volume weighting — this makes overbought and oversold readings more meaningful because they reflect actual capital flow rather than just price movement. MFI divergences at major support or resistance levels are among the most reliable reversal signals available. Use the 14-period default for swing trading; shorten to 7-10 for intraday work.
Elder's Force Index, developed by Dr Alexander Elder, measures the force behind price movements by combining three essential elements: direction of price change, magnitude of that change, and volume. The raw force index is smoothed with an exponential moving average to create a practical oscillator that identifies trend strength, potential reversals, and the best pullback entries during an established trend.
Volume Spread Analysis examines the relationship between price spread (the range of a candle), closing position within that spread, and the accompanying volume to determine the intentions of institutional market participants. Developed from the work of Richard Wyckoff and refined by Tom Williams, VSA identifies accumulation, distribution, and supply/demand imbalances by reading the story that volume and price action tell together.
The Klinger Volume Oscillator (KVO) measures the long-term trend of money flow by comparing volume to price movement direction. It calculates a volume force based on the relationship between the high-low range, close, and volume, then applies two exponential moving averages to create an oscillator. The KVO is particularly useful for identifying divergences between volume flow and price, signalling potential reversals before they occur.
On-Balance Volume is a cumulative volume indicator that adds volume on up days and subtracts it on down days, creating a running total that reveals whether volume is flowing into or out of an asset. Developed by Joe Granville, OBV often leads price — a rising OBV during a consolidation suggests accumulation, while a falling OBV during a hold signals distribution. The direction of OBV matters more than its absolute value.