Compaq Message Board - Msg: 12929817

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Technology Stocks : Compaq

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To: Andreas who wrote (78573)	2/21/2000 12:18:00 PM
From: Andreas	Read Replies (3) of 97611

Correct definition of money flow. Where msninvestor goes astray is by simpling multiplying the total volume for the day by the change in price for the day. The correct way is to take up volume during day(volume on upticks) and subtract down volume during day(volume on downticks). This is the money flow for the day. This money flow for the day may be either positive or negative irrespective of whether the stock closed up or down for the day. In other words, down volume may exceed up volume in any given day even though the stock price closed up say 1/16.

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