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Technology Stocks : PairGain Technologies

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To: Islander who wrote (20370)2/8/1998 1:51:00 PM
From: margin_man  Read Replies (3) of 36349
 
Islander,

The money flow indicator measures the flow of money into and out of a
stock. There is probably more, but I only know two ways of computing
the money flow: day-by-day, and summation for a period of time.

For day-by-day, it is computed by subtracting the downtick and adding
the uptick for every tick in that trading day.

For summation, it is computed by multiplying the total trading dollars
by a factor called flow factor for a certain period.
I can go on to say how the total trading dollars and flow factor are
computed, but I'm afraid it will bore you.

It's the summation that I talked about. When the money flow starts
turning positive (from negative), it means somebody is buying/
accummulating.

I can't judge if institutional selling/buying from this indicator,
but one thing for sure it's not institutional selling last Friday
based on the declined price & trading volume vs. number of trades.
Yes, I'm aware of breaking into small pieces and sell, but I don't
think it wss the case here last Friday. It's just normal profit
taking. PAIR went from 18.5 to 21.5 in three days, I would take
a profit too if I have one <ggg>.

I found the following URL when I was recovering my favorites. It may
be of interested for new options players & charters:

e-analytics.com

Good luck and <GO PAIR>
Patriot
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