Construction and interpretation of the indicator is similar to with the only difference that is important to .
When analyzing the index one needs to take into consideration the following points:
divergences between the indicator and price movement. If prices grow while falls (or vice versa), there is a great probability of a price turn;
Index value, which is over 80 or under 20, signals correspondingly of a potential peak or bottom of the market.
Common known variants of this type of indicator are the , or .
Based on https://www.metatrader5.com/en/terminal/help/indicators/volume_indicators/mfi
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.