
It shows the change of price for 1 tick & it is a more rigid indicator in that it is volume-weighted, and is therefore a good measure of the strength of money flowing in and out of a security.- If prices grow while MFI falls (or vice versa), there is a great probability of a price turn- When MFI value’s over 80 or under 20, signals correspondingly of a potential peak or bottom of the market.MFI increases and volume increases: new opened positions in the direction of bar development.MFI falls and volume falls: the market participants are not interested anymore.MFI increases, but the volume falls: the market is not supported with the volume from clients, and the price is changing due to traders’ (brokers and dealers) “on the floor” speculationsMFI falls, but the volume increases: There is a battle between bulls and bears, characterized by a large sell and buy volume, but the price is not changing significantly since the forces are equal
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