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Sunday, March 15, 2009

The Money flow index chart

Typically, when talking about money flow we are talking about the money flow index chart which is scaled like RSI (0 to 100) with the same overbought and oversold levels.

The money flow index is essentially a volume weighted version of RSI

(price ups multiplied by volume and added and price downs multiplied by volume added for a given period).

If you're confused by this, got back to the relative strength index tutorial and take a look at the formula for calculating RSI and it should be clearer.

Money flow chart
The money you are putting into our service is not an expense - it is an investment. Every single cent is used to bring you profit. On the below chart you can analyze the way, your money travel through the system back to you.

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