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Strategies & Market Trends : The Thread Formerly Known as No Rest For The Wicked -- Ignore unavailable to you. Want to Upgrade?

To: jas cooper who wrote (64123)	10/5/1999 10:34:00 AM
From: Dave	Respond to of 90042

Jas, Money flow can help the investor with additional information because it combines two variables price and volume with the corresponding sell or buy. This can be helpful because a stock's price may actually be down but money flow could be positive due to purchases being made at either high enough prices or large enough volume to offset that which is sold. It would be intuitive to assume that money flow correlates with the price change, but this isn't always true. The same can be true in reverse...price could be up but money flow could be negative. What this provides the astute investor is a clue to look further for the cause of the discrepancy. If one discovered it was due to large blocks being bought or sold or due to some odd prices on the tape, one might want to make some assumptions based on that information...not to say they are always correct but it is a tool that can be useful when combined with other information. At least that's my view. FWIW, Dave

To: jas cooper who wrote (64123)	10/5/1999 10:48:00 AM
From: kathyh	Read Replies (2) \| Respond to of 90042

If I have not ingratiated myself to the thread too much "ingratiated" (to bring oneself into another's favor or good graces by conscious effort) is not exactly the word that would come to mind james... lol money flow, as i understand it, is a measure of whether the trades are being registered as buys or sells... if the number is positive, then they were buys, if negative then sells... the reason it took me so long to answer this is i tried to look it up, and could not find an explanation in any of these glossaries... stocks.miningco.com an interesting thing to think about as far as mf is concerned... every trade has two sides... the buy and the sell side... so in reality, i am not exactly sure how they decide which way the money is flowing... would be great if someone more enlightened than i could explain this further...