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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: HairBall who wrote (49940)	5/9/2000 11:52:00 AM
From: Wayners	Respond to of 99985

unless you have found a way to draw then in advance of the price action...<g> You mean you can't? LoL. You're right. The question is being quick to identify reversals without either being too early/wrong/faked out) or too late (chasing at too high a price for example). Definitely a tradeoff between the two. Oh i forgot I also like counting waves.

To: HairBall who wrote (49940)	5/9/2000 1:38:00 PM
From: Fun-da-Mental#1	Respond to of 99985

What do you all think of AskResearch's "Money Flow Index"? This is a ratio of (advancing volume * price change)/(declining volume * price change) within a certain time window, typically 13: askresearch.com Usually the MFI moves along with the price until it reaches an extreme (around 20 on the low end, 80 on the high end) at which point something has to give. Usually the price and MFI reverse together, which is not very significant, but the divergences are more significant. I've been watching the MFI for some time and it seems to me that when the MFI stays at the extreme but the price reverses, that means the reversal is for real. By the same token, when the MFI reverses but the price does not, this is a strong continuation signal. I think this is actually opposite to the way the MFI was intended to work. I think the MFI is supposed to be a leading indicator, but I find it functions better as an oversold/overbought indicator. Does anyone else use the MFI and have an opinion? Fun-da-Mental