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Forex Glossary

The Industry's Most Important Terms Explained

The forex industry is made up of countless definitions and it's easy to forget a few along the way. But because no forex education can be complete without a glossary of forex terms, we've compiled one which aims at explaining key definitions in the simplest way possible. This way, you'll never be lost or confused again!


Money Flow Index

It is a momentum oscillator developed by Gene Quong and Avrum Soudack.

It combines both price and volume.  It measures the strength of money flowing in and flowing out of a financial instrument over a period.

There are two general interpretations:

  • Overbought/Oversold: A reading above 80 is considered Overbought and a market top may be in place.  A reading below 20 is considered oversold and a market bottom may be imminent.
  • Divergence between the oscillator and price hints at reversals.

Category: Technical Indicators

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