Overview The Money Flow Index (“MFI”) is a momentum indicator that measures the strength of money flowing in and out of a security. It is related to the Relative Strength Index, but where the RSI only incorporates prices, the Money Flow Index accounts for volume. Interpretation The interpretation of the […]

Overview The Negative Volume Index (“NVI”) focuses on days where the volume decreases from the previous day. The premise being that the “smart money” takes positions on days when volume decreases. Interpretation The interpretation of the NVI assumes that on days when volume increases, the crowd-following “uninformed” investors are in […]

Overview The Odd Lot Balance Index (“OLBI”) is a market sentiment indicator that shows the ratio of odd lot sales to purchases (an “odd lot” is a stock transaction of less than 100 shares). The assumption is that the “odd lotters,” the market’s smallest traders, don’t know what they are […]

Overview Developed by Welles Wilder, the Swing Index seeks to isolate the “real” price of a security by comparing the relationships between the current prices (i.e., open, high, low, and close) and the previous period’s prices. Interpretation The Swing Index is primarily used as a component of the Accumulation Swing […]

Overview The Mass Index was designed to identify trend reversals by measuring the narrowing and widening of the range between the high and low prices. As this range widens, the Mass Index increases; as the range narrows the Mass Index decreases. The Mass Index was developed by Donald Dorsey. Interpretation […]