The Money Flow Index (MFI) is a technical indicator that measures the momentum of money flowing in and out of a financial instrument. It is used to identify overbought or oversold conditions in the market. The MFI combines price and volume data to calculate a value between 0 and 100. A reading above 80 is considered overbought, indicating a potential reversal in price, while a reading below 20 is considered oversold, suggesting a potential price bounce. Traders often use the MFI to confirm trends and identify divergences that might signal a change in price direction.