Money Flow Index (MFI) is the technical indicator, which indicates the rate at which money is invested into a security and then withdrawn from it. With the only difference that volume is important to MFI. A positive money flow is a sum of positive money flows for a selected period of time. A negative money flow is the sum of negative money flows for a selected period of time. When money flow increase, the price of a share also increase and its true about 80% cases. Look at the graph, when money flow was increasing that time the price of the share also increasing and when money flow was decreasing that time price also decreasing. But one point must kept in mind if you find any MFI in oversold situation that is very good situation to entry. If you find any stocks MFI is in Overbought then it will be riskier to entry.
Chart Analysis
