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Strategies & Market Trends : Strictly Buy and Sell Set Ups -- Ignore unavailable to you. Want to Upgrade?

To: chowder who wrote (2251)	2/13/2005 7:52:07 AM
From: GREENLAW4-7	Read Replies (1) \| Respond to of 13449

D-Bum, any thoughts on the OSX?? Much appreciated BOSS!!

To: chowder who wrote (2251)	2/13/2005 2:37:10 PM
From: DanZ	Read Replies (1) \| Respond to of 13449

Interesting article. While it is true that for every buyer there is a seller, one of them has to initiate a trade. A trade only occurs when a buyer is willing to pay the asking price or a seller is willing to sell at the bid. If neither of them budges (and they comprise the entire market), a trade won't occur. The difference between the volume of trades at the offer and volume of trades at the bid is sometimes referred to as Money Flow. IQ Chart (a service that I subscribe to) reports Money Flow for each stock on a daily basis. Positive Money Flow indicates that more shares traded at the offer than the bid (i.e. more buyers initiating trades on a volume basis than sellers). Negative Money Flow indicates that more shares traded at the bid than the offer (i.e. more sellers initiating trades on a volume basis than buyers). I have found Money Flow to be most useful in the following circumstances: 1. When it is positive during a decline in stock price (i.e. accumulation into weakness). 2. When it is negative into a rising stock price (i.e. distribution into strength). 3. When the magnitude of positive money flow is much greater than the norm during a rapid rise in stock price (i.e. blow off top, irrational panic buying). 4. When the magnitude of negative money flow is much greater than the norm during a rapid decline in stock price (i.e. blow off bottom, irrational panic selling). The latter two cases are often termed Volume Reversal when they are are accompanied by high volume and a change in the direction of price. No technical indicator ensures a profitable trade, but money flow is one of the better ones, especially when combined with other technical indicators and chart analysis. Best regards, Dan