MFI Oscillator Node
Money Flow Index Centered at Zero
Overview
The MFI Oscillator Node re-centers the Money Flow Index (MFI) around zero by subtracting 50 from the standard MFI reading. The result oscillates between −50 and +50, making zero-line crossings and divergences easier to read than the 0–100 scale of the standard MFI.
Positive values indicate net buying money flow; negative values indicate net selling money flow. The ±50 extremes correspond to the traditional 100 (extreme overbought) and 0 (extreme oversold) MFI readings. The oscillator form makes it easier to use with zero-line crossover systems and to overlay with other centered oscillators.
Algorithm
Parameters
| Parameter | Default | Description |
|---|---|---|
| period | 14 | Look-back period for money flow calculation |
Inputs & Outputs
| Slot | Direction | Type | Description |
|---|---|---|---|
| input | Input | OHLCV | Standard OHLCV price and volume data |
| values | Output | (number | null)[] | MFI − 50 oscillator value (range −50 to +50) |
| timestamps | Output | number[] | Unix timestamps aligned to input |
Use Cases
Zero-Line Crossover Strategy
Cross above zero = MFI above 50 (net positive money flow) — bullish signal. Cross below zero = MFI below 50 (net negative money flow) — bearish signal. Zero-line crossovers provide mid-zone signals earlier than the traditional 80/20 overbought/oversold levels.
Extreme Level Reversals
Oscillator near +30 to +50 corresponds to MFI 80–100 (overbought); values near −30 to −50 correspond to MFI 20–0 (oversold). These extremes, especially when combined with price divergence, signal potential reversals in the money flow trend.
Combining with RSI
Both MFI Oscillator and RSI can be plotted on the same −50/+50 scale for easy visual comparison. When both are below zero simultaneously, the bearish signal is confirmed by both price momentum and volume money flow — higher conviction entries.
Tips & Best Practices
Identical to MFI − 50
The MFI Oscillator is mathematically identical to the standard MFI minus 50. You can replicate this using the MFI node and a subtraction node. Use the MFI Oscillator node when you want the pre-centered output without additional node connections.
Volume Sensitivity
MFI Oscillator responds strongly to volume spikes. A single very high-volume day can dominate the money flow calculation and push the oscillator to extremes. Use a slightly longer period (20–21) in highly volatile, volume-driven markets to smooth out single-bar dominance.
Identical-Price Bars
When TP equals the previous bar's TP (unchanged close, high, and low), that bar's money flow is counted as neither positive nor negative. In illiquid instruments with many unchanged bars, the oscillator may be biased toward zero — consider using a different volume indicator.