✓ Mathematical
◆ The PatternMFI is "RSI with volume.
The Money Flow Index — often called "volume-weighted RSI."
Typical Price = (High + Low + Close) / 3
Money Flow = TP × Volume
MF Ratio = Positive Flow / Negative Flow
MFI = 100 − 100 / (1 + MF Ratio)
Money Flow = TP × Volume
MF Ratio = Positive Flow / Negative Flow
MFI = 100 − 100 / (1 + MF Ratio)
Scale: 0–100. Default period: 14.
Zones:
• MFI > 80 → overbought (potential reversal)
• MFI < 20 → oversold (potential bounce)
• MFI divergence from price → strong reversal signal
More reliable than RSI in liquid, volume-rich markets
• MFI > 80 → overbought (potential reversal)
• MFI < 20 → oversold (potential bounce)
• MFI divergence from price → strong reversal signal
More reliable than RSI in liquid, volume-rich markets
Pattern bridge: Money Flow Index is RSI weighted by volume — the same normalization to [0,100]. In statistics, weighting by a second variable is a covariance-aware approach.