Analysis Techniques & Strategies

Money Flow (Indicator)

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Input Information

Name Expression Default Description
Length Numeric 14 Number of bars to include in calculation.
OverSold Numeric 20 Money Flow value to be considered oversold.
OverBought Numeric 80 Money Flow value to be considered overbought.
OverSColor Numeric Cyan Plot color for oversold values.
OverBColor Numeric Red Plot color for overbought values.

Market Synopsis

The Money Flow indicator calculates an indexed value based on price and volume for the number of bars specified in the input Length. Positive Money Flow is calculated and summed for each of the last Length number of bars with an average price greater than the previous bar and then divided by the Money Flow for all the  bars specified in Length. The use of both price and volume provides a different perspective from price or volume alone. The Money Flow indicator tends to show dramatic oscillations and can be useful in identifying overbought and oversold conditions.

Plot Information

Number Name Default Color Description
Plot1 MoneyFlow LightGray Plots the Money Flow as a line.
Plot2 OverBot Dark Green Plots the overbought reference line.
Plot3 OverSld Dark Green Plots the oversold reference line.

When applied to a chart, this indicator displays three plots in a separate subgraph from the price data.