How It Trades
- Compute the 14-bar Money Flow Index: the same 0-100 scale as RSI, but each bar's move weighted by the money that changed hands on it.
- Buy when MFI climbs back above 20: selling pressure was heavy enough to exhaust the oversold zone and money is starting to flow back in.
- Sell when MFI pushes above 80, where buying volume has crowded in far enough to call the move overbought.
Example Strategy
Pine Script
Paste it into TradingView’s Pine Editor to run these rules on any chart.
//@version=6
// MFI Reversal — sort.finance. Fills at the signal bar's close, 0.02% fee a side,
// whole account per trade, as the backtest. History and indicator warm-up
// differ from the site's, so expect close to the same trades, not identical.
strategy("MFI Reversal", overlay=false,
initial_capital=100, default_qty_type=strategy.percent_of_equity,
default_qty_value=100, commission_type=strategy.commission.percent,
commission_value=0.02, process_orders_on_close=true, pyramiding=0)
// The bar the current position opened on, and the bar the last one closed on.
var int entryBar = na
var int exitBar = -1
// ── Signals ──────────────────────────────────────────────────────────────
mfi = ta.mfi(hlc3, 14)
enterNow = mfi[1] <= 20 and mfi > 20
exitNow = mfi[1] <= 80 and mfi > 80
// ── Orders ───────────────────────────────────────────────────────────────
// Open on the first bar the entry holds while flat; close on the first
// later bar the exit holds; never reopen on the bar a position closed.
inTrade = strategy.position_size != 0
if inTrade and bar_index > entryBar and exitNow
strategy.close("Long")
exitBar := bar_index
else if not inTrade and bar_index > exitBar and enterNow
strategy.entry("Long", strategy.long)
entryBar := bar_index
// ── Drawing ──────────────────────────────────────────────────────────────
plot(mfi, "MFI 14", color=#4d8dff)
hline(20, "Oversold 20", color=color.new(#8a92a0, 40), linestyle=hline.style_dashed)
hline(80, "Overbought 80", color=color.new(#8a92a0, 40), linestyle=hline.style_dashed)