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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: kathyh who wrote (64137)10/5/1999 11:22:00 AM
From: Mark_H  Read Replies (1) | Respond to of 90042
 
Kathy,

Money flow is only a technical indicator that is based on whether trades are on an uptick or a downtick. The value increases if the shares are traded on an uptick and decreases if the shares are traded on a downtick.

Example, if 1000 shares are traded on an uptick, money flow will increase by 1000. If the next trade is 500 shares on a downtick, money flow is decreased by 500. The net effect of these two trades would be a positive money flow of 500.

If the price of the stock is going up and money flow is going down, the indicator predicts a possible collapse of the stock price. On the other hand, if the price is going down and money flow is rising, accumulation is possibly happening. As with any TA indicator it is best to check to see what other indicators are showing.