MFI Explained — Where RSI Disagrees

You added the Money Flow Index, saw a line that looked exactly like your relative strength index, and quietly wondered why you were running two indicators that draw the same picture. Nobody could tell you what it does differently, or when to believe one over the other. So it sat on the chart doing nothing, or you took it off.

They are not the same picture. On roughly one bar in ten they give opposite answers - and those are the bars worth knowing about. This is a 75-page PDF that teaches MFI from the first thing you see on the screen through to a written strategy with an entry, a stop and an explicit rule for when the trade is wrong.

Nothing is taught underneath a chart. Every label sits on the candle, the line or the level it is describing, on real Coinbase charts across 6 instruments, with every value computed and printed on the panel. There are three quizzes on real charts, each followed by the same chart re-shown annotated with the reasoning, plus faded practice pages where the first steps are filled in and you finish the rest.

WHAT'S INSIDE

- Exactly where it and the relative strength index split — Measured over 28,800 bars: they disagree about whether the market is extreme on 10.5% of them, and agree on only 3.7%

- Volume-weighted RSI is only half the story — Two things separate them, not one - and the volume is the smaller half. Both measured, in points, on real data

- The one input, and the three levels nobody adjusts — What Length actually changes - it is not what you have been told - and what moving the Overbought and Oversold rails costs you

- All four divergences, on four different charts — Regular and hidden, bullish and bearish, each on its own real window - plus how often one genuinely turns up

- Why overbought is not a sell signal — A real window where the line sat above the rail for 26 straight bars while price kept climbing

- A full strategy, losses included — Entry, stop, and a money-flow invalidation - plus every signal one window produced, losses included

WHAT YOU'LL BE ABLE TO DO

- Say what the line is measuring, not just whether it is high or low

- Tell which of your two oscillators to believe when they disagree

- Spot all four divergence types and know which two are continuations

- Judge whether the volume feeding it is worth trusting at all

- Trade a written rule with an explicit money-flow invalidation

AN HONEST NOTE

MFI is a clue, not a crystal ball. It describes what price has already done. This guide contains no win-rates, no backtest results and no promises about what you will make, because nobody can verify those and you should not trust anyone who prints them. What it hands you instead is a set of rules you can test yourself on TradingView in an afternoon. Educational, not financial advice.

Instant download. 75 pages, PDF.