The money flow index (MFI) is a technical indicator. Taking into account the volume and price action, the MFI can measure both buying and selling momentum for any financial asset.
According to the MFI, a significant rise in price indicates purchasing pressure while it is due to selling pressure the price of any given asset falls. The money ratio or money flow index is calculated by taking into account these positive and negative money flows.
MFi becomes easily accessible using the money ratio that ranges from 0 to 100. Since MFI uses both volume and price, it becomes very effective to determine price reversals along with the price extremes.