Blaine,
Pull down insert (or press F-7) and go to the M's for MoneyFlow. Click on the indicator and presto it will be plotted in your stock. You must have a stock to plot the indicator. Here what the help info reads:
Plot1 = MoneyFlow function
Description:
"The money flow index(MFI) is a volume-weighted form of the relative strength index (RSI). Instead of using up closes versus down closes, the MFI compares today's average price to yesterday's average price and then weighs the average price by volume to calculate money flow(MF). The ratio of the summed positive and negative money flows are then normalized to be on a scale of zero to 100." (Green, page 34)
Average price is calculated by summing the open (if available), close, high, and low, then dividing the sum by either four or three (three if no open is available). Positive money flow occurs when today's average price exceeds yesterday's average price and is calculated by multiplying today's volume by today's average price. Negative money flow occurs when yesterday's average price exceeds today's average price and is calculated by multiplying today's volume by today's average price. The positive and negative money flows are then summed over LENGTH (14 as default) bars. The Money Flow Index is then calculated as follows:
Our version of the indicator also calculates a nine (9) period moving average of the MFI and the close. These calculations are used in the Additional Analysis of the indicator.
Conventional Analysis:
Money flow issues a signal when a new high or low is reached in the market which is not confirmed by a similar new high in the Money Flow Index.
Additional Analysis:
If the average of the Money Flow Index increases over two consecutive bars and the average close decreases over two consecutive bars, a signal is generated. Likewise, if the average of the Money Flow Index decreases over two consecutive bars and the average close increases over two consecutive bars, a signal is generated.
Alerts:
ú HighestBar(High, 9) = 0 and HighestBar(Plot1, 9) = 0
ú LowestBar(High, 9) = 0 and LowestBar(Plot1, 9) = 0
ú Average(Plot1, 9) > Average(Plot1, 9)[1] and Average(Plot1, 9)[1] > Average(Plot1, 9)[2] and Average(Close, 9) < Average(Close, 9) [1] and Average(Close, 9)[1] < Average(Close, 9)[2]
ú Average(Plot1, 9) < Average(Plot1, 9)[1] and Average(Plot1, 9)[1] < Average(Plot1, 9)[2] and Average(Close, 9) > Average(Close, 9) [1] and Average(Close, 9)[1] > Average(Close, 9)[2]
Additional References:
Green, Brian D. On Trendlines, Money Flow Index and The Elliott Wave; Technical Analysis of Stocks and Commodities; Pages 30-34; August 1994. |
