Money Flow Index MFI vs RSI Relative Strength Index (ETHEREUM)

The MFI compares it with several different evaluations of money flows with volume in and out of the asset. Based on the theory that volume precedes price, the MFI acts as a more ambitious leading indicator than the RSI.

As you can see by only using the example above, the MFI would have predicted substantial % profits for the wise trader. It was able to spot divergences with enough time to enter into a trade for significant wins.

I highlighted the areas where there was no such luck spotting divergence with the RSI.

The Money Flow Index (MFI) is a modified RSI indicator with an additional volume component. Put simply, think of the MFI as RSI that accounts for volume divergences.

Note: training yourself to rely solely on price-action based strategies (universal support and resistant, candles etc.) will make you more successful in the long run.

If you designed your indicator-based strategy to work in a trending market, it’s going to fail when markets begin to consolidate.

But once again, the price action trader isn’t phased. It doesn’t matter if the market is trending or range bound, the psychological support and resistance levels will always tell the real story.