Glossary

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Money Flow MF

Technical Indicator

Money Flow (MF) is a technical indicator used in the analysis of financial markets. It calculates the money flow volume over a specific period and is used to determine the strength of price trends and potential trend reversals.

The Money Flow indicator is calculated by multiplying the closing price of a security by the traded volume on that day. If the closing price is higher than the previous day’s close, it is considered a positive money flow, while a lower price results in negative money flows.

Formula for Money Flow (MF):
MF = (Closing price – Lowest price) / (Highest price – Lowest price) x Volume

The Money Flow index (MFI) is then calculated by taking a 14-period average of the Money Flow value. The MFI ranges from 0 to 100, with values above 80 indicating overbought conditions and values below 20 indicating oversold conditions.

Traders use the Money Flow indicator to identify potential trading opportunities when the MF diverges from price trends, which can indicate a potential trend reversal or continuation. It is often used in combination with other technical indicators to confirm trading signals.

More Glossary Terms Beginning with M

M1 Money Supply
M1 consists of (1) currency outside the U.S. Treasury, Federal Reserve Banks, and the vaults of depository institutions; (2) travelers checks of nonbank issuers; (3) demand deposits at commercial banks (excluding those amounts held by depository institutions, the U.S. government, and foreign banks and official institutions) less cash items in the process of collection and Federal Reserve float; an

Economy Term Letter: M
M2 Money Supply
M2 consists of M1 plus (1) savings deposits (including money market deposit accounts); (2) small-denomination time deposits (time deposits in amounts of less than $100,000), less individual retirement account (IRA) and Keogh balances at depository institutions; and (3) balances in retail money market mutual funds, less IRA and Keogh balances at money market mutual funds.

Economy Term Letter: M
m3
Cubic metre. A measure of volume equal to approximately 1,130 square feet (3/8-inch basis).

Manufacturing Term Letter: M
MACD
MACD is the difference between a fast Exponential Moving Average (EMA) and a slow Exponential Moving Average and the fast Moving Average is continually converging towards or diverging away from the slow Moving Average. Signal line is a the Exponential Moving Average of the MACD, plotted to identify changes in trends and market sentiment. The MACD study can be used to identify buy and sell signals.

Technical Indicator Letter: M
MACT
Maximum Achievable Control Tech- nology. Regulations being introduced in the US to limit the discharge of hazard- ous air pollutants.

Manufacturing Term Letter: M
Mammography
An X-ray of the breast with the breast in a device that compresses and flattens it.

Health Care Term Letter: M
Managed Credit Card Receivables
Refers to credit card receivables on the Firms Consolidated Balance Sheets plus credit card receivables that have been securitized and removed from the Firms Consolidated Balance Sheets.

Financial Term Letter: M
Managed Receivables
Total receivable amounts on which the company continues to perform billing and collection activities, including receivables that have been sold with and without credit recourse and are no longer reported on their Statement of Financial Position.

Financial Term Letter: M
Manufacturers Manufacturing
Establishments in the manufacturing sector are often described as plants, factories, or mills, and characteristically use power-driven machines and material-handling equipment. Manufacturing establishments may process materials, or may contract with other establishments to process their materials for them. Both types of establishments are included in manufacturing.

Manufacturing Term Letter: M
Mark To Market
The valuation at fair value, using prevailing market prices, at a specified point in time.

Financial Term Letter: M
Mark To Market Exposure
A measure, at a point in time, of the value of a derivative or foreign exchange contract in the open market. When the mark-to-market value is positive, it indicates the counterparty owes the Firm and, therefore, creates a repayment risk for the Firm. When the mark-to-market value is negative, the Firm owes the counterparty; in this situation, the Firm does not have repayment risk.

Financial Term Letter: M
Marker
Indicator of the presence of a specific kind of tumor, identifiable by means of specific laboratory tests.

Health Care Term Letter: M

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