INDICATOR

Money Flow Index

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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.