As a result, the index rarely reaches the 20 or 80 thresholds typically used to signal overbought or oversold conditions.
In the more widely accepted definition of the MFI, as seen in Wikipedia, TradingView and Investopedia, the positive/negative signs are instead extracted from the Typical Prices.
In the current implementation of the Money Flow Index (MFI), the
extractSigns
function is applied to the changes in therawMoneyFlow
array.As a result, the index rarely reaches the 20 or 80 thresholds typically used to signal overbought or oversold conditions.
In the more widely accepted definition of the MFI, as seen in Wikipedia, TradingView and Investopedia, the positive/negative signs are instead extracted from the Typical Prices.
This isn’t necessarily an error, but it might confuse some users.