VFI,introduced by Markos Katsanos, is based on the popular On Balance Volume (OBV) but with three very important modifications: * Unlike the OBV, indicator values are no longer meaningless. Positive readings are bullish and negative bearish. * The calculation is based on the day's median (typical price) instead of the closing price. * A volatility threshold takes into account minimal price changes and another threshold eliminates excessive volume. A simplified interpretation of the VFI is: * Values above zero indicate a bullish state and the crossing of the zero line is the trigger or buy signal. * The strongest signal with all money flow indicators is of course divergence.
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