Money Flow Index in Forex Trading

MFI Money Flowing Index Definition

Money Flow Index (MFI) basically aik technical indicator hy ye keemat aur hujjam dono ko use karta hai . lekin mostly Selling pressure Jo market me mojood hota hy us ko calculate karny k liye use hota hai. is indicator ko volume weight RSI bhi kaha jata hai.



MFI using RSI formula

Money Flowing index aik asa makhsoos indicator hai jo volume aur momentum dono ko RSI formula mein use karta hai. yeh indicator ki value ko above 50 ho tou market mein bull trend samjha jata hai . iss tarah is indicator ki value 50 se less than ho tou market mein bear trend samjha jata hai. jb MFI ki value 80 ho jaye toh yeh over bought ko slow karta hai is tarah jb MFi ki value 20 ho jaye toh yeh over sold show karta hai.money flow index aur relative strength index dono aek dusry k closely related hoty hainin mein difference yeh hai ky MFI volume ko use karta hai Aur RSI aesa nahi karta.

Signals Through MFI

MFI basically signal provide krta hai aur trader ko pehle se hi warning deta hai mumkin reversal ya trend ki tabeeli kay bary mein lekin RSI ki trha hi ye bhi signal provide karta hai. lekin RSI ki tarah is ki value bhi 0 to 100 k mid vary karti hai. MFI ki valus jab 20 se down ho jae tou trader ko buy ki trade open karni chahiye aur jab uski value 80 se up hoje you order open karna chahiye.



MFI Difference with RSI

MFI ky mutabiq central point 50 sy upper side per ho tou market uptrend main hoti hai jo continue rehta hai isi tarah agar market same centre point 50 sy down side per ho tou market down trend main hi rehti hai tou hamain market main trade bhi same trend ko follow karte huye hi open karni chahiye lekin jab market maximum position 80 per ponch jati hai tou market wahan tak overbought position main ja chuki hoti hai ky wahan per ham buy main trade enter ker ky bahot bara risk lety hain jab market same overbought position to meet kar chuki ho toh main wahan se sell main trade enter kerny chahien ky jab market overbought sy reverse direction main movement karna shoru kerti hai tou wahan per sell main open order main profit hasil hona shuru ho jata hai jabki agar market downtrend main movement kerty huey minimum position 20 per ponch jati hai jo market main oversold position bhi hoti hai tu wahan se hamein market main buy ki trade enter kar leni chahiye ky jesy main jab market oversold position to meet kar leti hai tou wahan sy market ky reverse bhi zaroor hona hota hai ky ham yahan per buy main trade enter ker sakte hain

Effectiveness of MFI

Money Flow Index Ka sahi istemal tab he ho sakta hay jab ham is ki indication kay bad fundamental analysis ko bhi zehn main ralhen aur is kay bad ham support and resistance ko follow karte huye stop loss and take profit ka use karain. Mazeed hamain MFI ki ranges main trading karny kay liye proper risk management karni chahiye.



Relativity Between RSI & MFI

RSI or MFI Kay Kuch disadvantages bhi hai ye trade ko trade open karny ma guide to karty hain but ye time ka ni bataty k trader ko kitne time bad is signal ki confirmation ka signal mily ga. Jo trader in signals ko follow krty huay bari lot ko place kar lete hain wo acha profit hasil karny me successful nhi ho paty kyun kay market mostly overbought or over sold ki mojooda condition sy bhi aage nikal jati hai. So trader ko market par trust nahi karna chahy or hamesa small lot sy he trade ko prefer karna chahiye.

Re: Money Flow Index in Forex Trading

Han je dear forex trading ma trader different methods profit gain karny ko estamal karty hain. Jis trader kay pass achi learning hoti hai wo acha profit gain karny ma succeed ho jata hai. Jis trader kay pass good knolwledge or experience ni ho ga wo acha profit hasil karny ma succeed ni hoty hain. Es post ma ham money flow index ko mazeed explain karyn gyn



Money flow index meaning.

Money flow index forex market kay momentum indicator hai or ye money flow in side or money flow out side ko measure karta hai. Ye relative strength index kay similar kam karta hai but ye volume ko in consideration ma use karta hai so ham esko volume weighted relative strength index bi keh sakty hain. Money flow index volume ko use kar kay signal deta hai or relative strength price ko use kar kay trade kay laye madad deta hai.

Money flow index depicts market states.

Money flow index market ki different states ko depict karta hai jis ma mainly over bought jo market ki major resistance par or over sold states jo market ki major suppprt par hain. Jb money flow index market ki over bought state ko rectify karta hai to ye trader ko helpout karta hai k wo short ki trade ko start kar leyn. Jb money flow index over sold state ko consider karta hai to ye trader ko signal deta hai kay wo long ki tradr ko start kar sakyn.

Drawbacks of Relatibe Strengh Index and Money Flow index.

Relative strength index or money flow index ka ik side effect ye bi hai kay ye trade ko trade open karny ma guide to kartyn hain but ye time ki informatiom ni batatyn kay trader ko ketny time kay bad es signal ki consideration ka signal mele ga. Jo trader en signals ko adopt karty hoye big lot ko place kar letyn hain wo acha profit hasil karny ma succeed ni ho patyn kiu kay market mostly over bought or over sold state sy bi farword move kar jati hai. So trader ko market par trust ni karna chahe or hamesa small lot sy he trade ko prefer karny ki khosis karna chahe.