Money Flow Index (MFI)
The Money Flow IndexAn index related to cryptocurrency trading is a tool that is used to track the performance of a group of cryptocurrencies. It is designed to... (MFI) is a technical indicator that measures the buying and selling pressure of an asset. It calculates the ratio of money flowing into an asset to the money flowing out, and then uses that ratio to create an oscillator that oscillates between 0 and 100.
When the MFI rises above 80, it is considered overbought, indicating that the asset is likely to experience a downward price correction. When it falls below 20, it is considered oversold, indicating that the asset is likely to experience an upward price correction.
Trading bots like HaasOnline can use the MFI to automate buying and selling decisions based on these overbought and oversold conditions. For example, a trading bot could be programmed to buy an asset when the MFI falls below 20 and sell when it rises above 80. This can help traders take advantage of short-term price movements and potentially increase profits.