Money Flow Index (MFI) – FX Replay Guide
The Money Flow Index (MFI) on FX Replay blends price and volume to help you detect overbought/oversold zones and potential trend reversals. It’s great for spotting hidden momentum shifts before price reacts.
How to Use MFI in FX Replay:
1. Overbought/Oversold Zones:
- Above 80: Market may be overbought – watch for pullbacks.
- Below 20: Market may be oversold – watch for rebounds.
- Use these zones to time entries or exits in your backtests.
2. Spot Divergences:
- Bearish: Price makes new highs, but MFI doesn’t → potential weakness.
- Bullish: Price makes new lows, but MFI rises → possible reversal.
- These divergences are powerful when paired with structure shifts or FVG zones.
3. Confirm Trends:
- If MFI rises while price trends up, it confirms strong buying pressure.
- If MFI falls during a downtrend, it supports bearish continuation.
- Use FX Replay’s replay mode to test how MFI confirms or contradicts trends.
4. Combine with Other Indicators:
- Try pairing MFI with RSI or Order Block tools.
- Use the position tool and set trades at confluence zones with MFI confirmation.
- Adjust your stop-loss and take-profit logic based on MFI signals.