What Is the Money Flow Index (MFI)?

The Money Flow Index (MFI) is a technical oscillator that uses price and volume data for identifying overbought or oversold signals in an asset.. .The MFI is calculated based on both price and volume data, providing insights into the strength of buying and selling pressure in the market. It measures the influx and outflow of money into a particular asset, like a stock, over a specific period .The MFI typically ranges from 0 to 100.

An MFI reading above 80 is considered overbought and an MFI reading below 20 is considered oversold,1 although levels of 90 and 10 are also used as thresholds

You can calculate money flow index from following formula :

Money Flow Index =100−100/1+Money Flow Ratio

Where:

Money Flow Ratio =14 Period Positive Money Flow /14 Period Negative Money Flow

Raw Money Flow =Typical Price * Volume

Typical Price =High + Low + Close / 3

You can scan average price in smart karobaar app with following process :

1. At first you have to download smart karobaar app .

2.Then tap volume under technical scanner .

3. Then tap on average price calc .

4. At last you can scan average price .

Using Smart Karobaar App to Analyze MFI on NEPSE Stocks

The Smart Karobaar app has emerged as a valuable tool for Nepalese investors seeking comprehensive insights into NEPSE stocks. It offers a user-friendly interface with real-time data, charting tools, and technical indicators, including the Money Flow Index.

Here's how investors can leverage the Smart Karobaar app to analyze the MFI on NEPSE stocks:

Stock Selection: Investors can use the app to search and select specific stocks they want to analyze based on the MFI indicator.
Customizable Timeframes: The app allows users to adjust the timeframes for MFI calculation, ranging from short-term intraday periods to long-term historical data.
Visual Representation: The app presents the MFI data in easy-to-read charts, enabling users to quickly identify trends and potential trading opportunities.
Alerts and Notifications: Smart Karobaar provides real-time alerts and notifications when a stock's MFI reaches a certain threshold, enabling investors to take prompt action.
Comparative Analysis: Investors can also compare the MFI of multiple stocks simultaneously, assisting them in making well-informed decisions within their investment portfolio.