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Technology Stocks : RAMBUS (Nasdaq: RMBS) - THE EAGLE -- Ignore unavailable to you. Want to Upgrade?

To: Don Green who wrote (1540)	3/21/2000 12:26:00 AM
From: mishedlo	Respond to of 2039

Can some respond to this? Hello all. I recently learned about "Money Flow". A good explanation can be found at bloomberg.com. I am new to technical analysis and would appreciate help confirming the conclusions I made from the following charts. ---------------------------------------- Chart 1: One day money flow for RMBS, computed at one minute intervals. It shows that less than five million dollars flowed out of the stock over the course of the day. Not much in the big scheme of things. chart.bigcharts.com ---------------------------------------- Chart 2: Two day money flow for RMBS, computed at one minute intervals. Five million dollars have flowed into the stock over the period. Once again, not much in the big scheme of things. chart.bigcharts.com ---------------------------------------- Chart 3: Five day money flow for RMBS, computed at one minute intervals. 10 million dollars have flowed out of the stock over the past five days. Again, not much in the big scheme of things. chart.bigcharts.com ---------------------------------------- Chart 4: 10 day money flow for Rambus, computed at one minute intervals. More than 100 million dollars (!) in new money has flowed into RMBS over the period. A fairly big chunk of change. chart.bigcharts.com ---------------------------------------- Chart 5: One month money flow for Rambus, computed at daily intervals. Several billion dollars (!) in new money has flowed into RMBS over the period. Definitely a big chunk of change. chart.bigcharts.com ---------------------------------------- My conclusion from Charts 4 and 5 (indicating large inflows) read together with Charts 1, 2 and 3 (indicating neither inflows nor outflows) is that we have a "divergence" (stock price moving in a different direction than the money flow) and that the correct strategy would be to buy on the weakness. Please feel free to pick holes in this analysis. Cheers. P.S. Is there a loss of accuracy if large intervals are used to compute money flow? What is the optimum setting to be used while computing money flow? Using hourly intervals it appears as if 300 million dollars flowed out today. chart.bigcharts.com Using 15 minute intervals it appears as if 165 million dollars flowed out today. chart.bigcharts.com Using 5 minute intervals it appears as if 100 million dollars flowed out today. chart.bigcharts.com However, using 1 minute intervals it appears as if only 5 million dollars flowed out today.