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Strategies & Market Trends : Level II Trading

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To: Vanni Resta who wrote (377)3/29/1998 9:42:00 AM
From: funk  Read Replies (1) of 1086
 
Money Flow is calculated by multiplying price with the number of shares traded on {{ upticks or buys; subtracted from downticks or sells.}} The net amount is added to the previous days money flow total. In general, money flows and price trends move in the same direction. A divergence between money flow and price trend may signal a future price trend change. Separate money flows are kept for block trades (10,000 shares or more) and non-block trades.

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