View: IWM weekly and MFI 11.2.13sc.png

This is a follow up from the posting last week on IWM which suggested a fall is likely just ahead. Most technicians suggest that volume is important to TA. I suppose these very smart folks are correct but I personally have a hard interpreting raw volume in a practical way. Two indicators that include volume are the Force and the MFI (money flow index). In my day to day trading I use the Force. (May the force be with you). But I thought I would look at the MFI vs the IWM. I am focused on the IWM as I think if there is a great fall this index may well fall the most. According to StockCharts.com the MFI: 
“As a volume-weighted version of RSI, the Money Flow Index (MFI) can be interpreted similar to RSI. The big difference is, of course, volume. Because volume is added to the mix, the Money Flow Index will act a little differently than RSI. Theories suggest that volume leads prices. RSI is a momentum oscillator that already leads prices. Incorporating volume can increase this lead time.” 
Here is what I see. Looking at the last ten years of the IWM there have only been 3 times the MFI has gone above 80. On the chart labeled 1-3. The first two times there was a bearish divergence with price for about 7 months before price began to fall. The third time is now and there is again a strong bearish divergence for about 8 months. As most of you know NOT very bearish divergence leads to lower prices. But many tops are accompanied by a bearish divergence. So this encourages me that a top is at hand. 
I apologize if this seems didactic. I am just sharing what I am learning as I try to improve my skills.  
Hope in some way this is helpful to you. Have a good trading week ahead. Tom B 11/2/13