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Money Flow (MF)

Money Flow values can be used as part of the Money Flow Index equation or as an independent calculation. The Money Flow indicator demonstrates the cash outflows and inflows in regards to a definite stock.

The equation for Money Flow calculation is simply:

Money Flow = (Typical Price) * (Volume)

Where Typical Price is defined as: (High + Low + Close) / 3

While a stock's price just provides a snapshot in time, Money Flow can identify if the market may be discounting some future, important event.

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