Like all leading indicators, MFIs help traders better predict future market movements. To do this, they focus on detecting two main scenarios: overbought and oversold markets. We can define this market by looking at its MFI value. MFI values range from 0 to 100. Based on where the MFI is located, traders can determine whether the market is overbought, oversold, or in a neutral zone. This allows them to identify potential trading opportunities and profit from them. Overbought markets often have a value over 80, while oversold markets typically have a value below 20. Based on the trader's approach and market conditions, the exact numbers may differ. You should not trade based on the MFI's overbought and oversold signals. Because the MFI can remain in the overbought/oversold zone for a long time within a strong trend, always look for other indicators to confirm it.