Piotr,
Thanks for responding. However, my point is that the msn investor definition of money flow is incorrect. Money flow for any particular day is defined by msinvestor as the volume multiplied by change in closing price. Therefore, if volume is 1000 and stock went up 1/4 then money flow is positive 250. The 250 is then added to prior money flow to get a new cumulative number, which, by definition must be larger than the previous money flow number by 250. In other words, the stock went up and therefore money flow went up. According to this definition, it is impossible for money flow to go up and stock go down or vice versa. Given this scenario money flow always tracks the direction of the stock price. How then can money flow trend down when stock price is going up, under this definition? Answer - I don't see how it can. Therefore, definition is wrong.
To put it yet another way - explain how money flow can drop on a day when the stock price goes up, if in fact money flow is defined as msn investor defines it "volume times change in stock price". |
