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Strategies & Market Trends : Classic TA Workplace -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (33886)	3/10/2002 11:20:09 PM
From: UnBelievable	Read Replies (1) \| Respond to of 209892

As The Price On INTC Has Gone Up Of Late The Money Flow Has Gone Down Gains on negative money flow are a very sure sign of distribution. When the distribution is complete the price will invariably drop. INTC is a textbook example of how this shows up in a chart. Take a look at a 90 day daily chart of INTC. Include the money flow as one of the analysis techniques. Note how in the past the money flow has tracked the changes in price, getting higher as price has gotten higher and lower when the price has gotten lower. This is the normal pattern. But you will see that in the last six days, even though the price has increased significantly, the money flow has stayed below 50. Money flow is an index of the shares times price of sales on upticks compared to shares times price of sales on downticks. When a stock rises you expect more of the sales to be on upticks. The gains on negative money flow are the result in the intervention in the market by sellers with a number of shares to sell, acting to maximize the price they recieve for those shares. (It is not illegal or particularly improper, although it is accomplished with a bit of deception.) They will bid the price of the stock up very quickly, and then the price is allowed to drift down as the seller distributes, periodically the price will be bid up as necessary. Once the distribution is complete, or the number of sellers becomes so great that the cost of bidding the stock up becomes too expensive, with no one bidding the price up, it goes down.