Compact mode

Money Flow Index (MFI) vs Momentum Indicator vs On-Balance Volume (OBV)

Table of content

General Information Comparison
Characteristics Comparison
Facts Comparison

Application Comparison
Technical Details Comparison
Usage Comparison
Evaluation Comparison
Performance Metrics Comparison

General Information Comparison

Indicator Type 📊

The category or classification of the trading indicator based on its primary function and analysis method.

Money Flow Index (MFI)

Volume

Money Flow Index (MFI) is a Volume type indicator. Indicators that analyze trading volume to confirm price movements

Momentum Indicator

Momentum

Momentum Indicator is a Momentum type indicator. Measures rate of price change, ideal for identifying strong trends Click to see all.

On-Balance Volume (OBV)

Volume

On-Balance Volume (OBV) is a Volume type indicator. Indicators that analyze trading volume to confirm price movements
Asset Class 💰

Specifies the financial instruments for which the indicator is most commonly used

For all*

Stocks

Indicators optimized for analyzing and predicting stock price movements in equity markets.

Money Flow Index (MFI)

Commodities

The asset classes Money Flow Index (MFI) is typically used for are Commodities. Trading indicators optimized for commodity markets like oil, gold, and agricultural products. Click to see all.

Momentum Indicator

Forex

The asset classes Momentum Indicator is typically used for are Forex. Indicators optimized for currency pair trading in the foreign exchange market. Click to see all.

Cryptocurrencies

The asset classes Momentum Indicator is typically used for are Cryptocurrencies. Indicators tailored for the volatile and 24/7 nature of cryptocurrency trading. Click to see all.

On-Balance Volume (OBV)

Cryptocurrencies

The asset classes On-Balance Volume (OBV) is typically used for are Cryptocurrencies. Indicators tailored for the volatile and 24/7 nature of cryptocurrency trading. Click to see all.
Known for 💭

The unique selling point or distinguishing feature of the trading indicator

Money Flow Index (MFI)

Volume And Price Movements

Money Flow Index (MFI) is known for Volume And Price Movements.

Momentum Indicator

Price Velocity

Momentum Indicator is known for Price Velocity.

On-Balance Volume (OBV)

Volume Precedes Price Movement

On-Balance Volume (OBV) is known for Volume Precedes Price Movement.
Made In 🌍

The country or origin of the trading indicator

Money Flow Index (MFI)

1980S

Money Flow Index (MFI) was developed in 1980S. Trading indicators developed during a decade of economic growth and technological advancement Click to see all.

Momentum Indicator

United States

Momentum Indicator was developed in United States. Indicators developed in the USA, reflecting American trading principles

On-Balance Volume (OBV)

1963

On-Balance Volume (OBV) was developed in 1963. Trading indicators specifically created in 1963

Characteristics Comparison

Lagging or Leading 🏁

Indicates whether the trading indicator is a lagging or leading type, reflecting its predictive nature.

For all*

Leading

Indicators that predict future price movements
Complexity Level 🧑

Indicates the level of expertise required to effectively use the indicator

Money Flow Index (MFI)

Intermediate

The complexity level of Money Flow Index (MFI) is Intermediate. Indicators balancing complexity and usability for traders with some experience. Click to see all.

Momentum Indicator

Beginner

The complexity level of Momentum Indicator is Beginner. Simple and easy-to-understand indicators suitable for novice traders. Click to see all.

On-Balance Volume (OBV)

Beginner

The complexity level of On-Balance Volume (OBV) is Beginner. Simple and easy-to-understand indicators suitable for novice traders. Click to see all.
Popularity 🏆

Indicates how widely used and recognized the indicator is in the trading community

For all*

Medium

Indicators with balanced adoption and potential effectiveness

Facts Comparison

Interesting Fact 💡

An intriguing or lesser-known fact about the trading indicator

Money Flow Index (MFI)

Often called the volume-weighted RSI

Momentum Indicator

Often confused with the Rate of Change (ROC) indicator

On-Balance Volume (OBV)

Developed by Joe Granville
Sarcastic Fact 😉

A humorous or ironic observation about the trading indicator

Money Flow Index (MFI)

It's like a financial breathalyzer - measures how intoxicated buyers are

Momentum Indicator

Jokingly referred to as the "lazy trader's best friend" due to its simplicity

On-Balance Volume (OBV)

It's the gossip column of indicators - always trying to predict the next big move

Application Comparison

Timeframe 🕑

The time intervals or periods for which the trading indicator is most effective or commonly used.

For all*

Daily

Indicators optimized for daily chart analysis, suitable for swing and position traders.

Money Flow Index (MFI)

Weekly

Money Flow Index (MFI) is most effective for Weekly timeframes. Indicators optimized for weekly chart analysis, balancing short-term noise and long-term trends.

Momentum Indicator

Weekly

Momentum Indicator is most effective for Weekly timeframes. Indicators optimized for weekly chart analysis, balancing short-term noise and long-term trends.

Technical Details Comparison

Calculation Method 🧮

The mathematical or analytical approach used to compute the trading indicator's values.

Money Flow Index (MFI)

Oscillators

Money Flow Index (MFI) uses the Oscillators calculation method. Indicators that oscillate between fixed values to show overbought or oversold conditions. Click to see all.

Momentum Indicator

Price-Based

Momentum Indicator uses the Price-Based calculation method. Indicators focusing on price movements and patterns for market analysis. Click to see all.

On-Balance Volume (OBV)

Price-Based

On-Balance Volume (OBV) uses the Price-Based calculation method. Indicators focusing on price movements and patterns for market analysis. Click to see all.
Signal Generation 📊

Describes the methods by which the indicator produces trading signals

For all*

Divergences

Indicators that show discrepancies between price and indicator movements, suggesting potential reversals

Money Flow Index (MFI)

Thresholds

Money Flow Index (MFI) generates trading signals through Thresholds. Indicators that generate signals when certain predefined levels or conditions are met

Momentum Indicator

Crossovers

Momentum Indicator generates trading signals through Crossovers. Indicators that generate signals when one line crosses another, indicating trend changes
Customization Options 🔧

Lists the parameters that can be adjusted to fine-tune the indicator

For all*

Period

Enables customization of analysis timeframe

Money Flow Index (MFI)

Thresholds

Money Flow Index (MFI) offers customization options for Thresholds. Customizable thresholds for signal generation Click to see all.

Usage Comparison

For whom 👥

The target audience or user group for the trading indicator

Money Flow Index (MFI)

Volume Traders

Money Flow Index (MFI) is designed for Volume Traders. Analyzes trading volume in relation to price movements, ideal for volume-based strategies Click to see all.

Momentum Indicator

Swing Traders

Momentum Indicator is designed for Swing Traders. Identifies medium-term trends and potential reversal points, ideal for multi-day positions Click to see all.

On-Balance Volume (OBV)

Volume Analysts

On-Balance Volume (OBV) is designed for Volume Analysts. Focuses on trading volume patterns and anomalies, crucial for volume-based analysis Click to see all.
Purpose 📈

The primary purpose or application of the trading indicator

Money Flow Index (MFI)

Volume-Weighted RSI

Money Flow Index (MFI) is primarily used for Volume-Weighted RSI.

Momentum Indicator

Trend Strength Measurement

Momentum Indicator is primarily used for Trend Strength Measurement. Tools that quantify the power and momentum of market trends Click to see all.

On-Balance Volume (OBV)

Volume Trend Confirmation

On-Balance Volume (OBV) is primarily used for Volume Trend Confirmation. Tools that validate price trends using volume data Click to see all.

Evaluation Comparison

Pros 👍

Advantages of using the trading indicator

Money Flow Index (MFI)

Incorporates Volume

Uses trading volume data to provide deeper market insights

Useful For Divergence Trading

Momentum Indicator

Simple And Straightforward

Helps Identify Potential Reversals

On-Balance Volume (OBV)

Simple To Calculate

Confirms Price Trends
Cons 👎

Disadvantages or limitations of the trading indicator

Money Flow Index (MFI)

Can Be Less Effective In Low Volume Environments

Momentum Indicator

Can Be Noisy In Choppy Markets

Needs Confirmation From Other Indicators

Refers to indicators that require validation from other technical tools for reliable signals. Click to see all.

On-Balance Volume (OBV)

Can Be Affected By Large Block Trades