A volume-weighted RSI. Instead of measuring price alone, MFI measures how much money actually moved to produce that price.
The MFI (Money Flow Index) was introduced by Gene Quong and Avrum Soudack in the 1990s. It takes the structure of RSI and embeds volume into the calculation, so that the resulting reading reflects not merely how far price moved but how much money it took to move it. This is why MFI is often called the "volume-weighted RSI."
Where RSI compares only price ranges, MFI works with the quantity typical price × volume = money flow. An advance on heavy volume scores more strongly than an advance on thin volume. The aim is to separate genuine, capital-backed moves from drift on quiet days — to ask not only where price went, but how much real money pushed it there.
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