Money Flow Index: The Volume-Weighted RSI | Technical Analysis
TL;DR
Money Flow Index: The Volume-Weighted RSI Money Flow Index is one of the most-used — and most-misused — tools in technical analysis. In this episode we break it down for serious traders: the intuition and the math, how to read it, real entry and exit signals, an analogy that makes it click, a worked example, and the pitfalls to avoid.
“Money Flow Index: The Volume-Weighted RSI Money Flow Index is one of the most-used — and most-misused — tools in technical analysis. In this episode we break it down for serious traders: the intuition and the math, how to read it, real entry and exit signals, an analogy that makes it click, a worked example, and the pitfalls to avoid.”Click to post on X ▸
Where this fits in the Confluence Method
This lesson lives in the Stack step of the Confluence Method, where you confirm price action and structure, momentum and a key level before a setup qualifies as a trade.
Read the full method ▸Full transcript
2 sections0:00Welcome back. The money flow index — think of it as RSI with volume baked in. MFI runs the same overbought-oversold logic as RSI, but it weights each move by volume. So an extreme reading backed by heavy volume carries far more conviction than one on thin trade. Over eighty is overbought, under twenty oversold. And like RSI, the best signal is divergence — but here, divergence means smart money is quietly moving against the crowd while volume tells the real story.
0:30Volume-weighted divergence is the edge. When MFI and price disagree, trust the money flow. Next: Bollinger Bands.
