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Technicals

Money flow index

Let's explore a volume indicator that incorporates the concepts of positive and negative volume along with the RSI calculation. In simple terms, money flow refers to the product of the average daily price and the current day's volume. This value is monitored and the average of up-money flow days and down-money flow days is calculated over a specific time frame. The result is expressed as the percentage of the total money flow that is positive, known as the Money Flow Index (MFI). This can provide valuable insights into market trends and potential opportunities.
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