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Strategies & Market Trends : Tech Stock Options -- Ignore unavailable to you. Want to Upgrade?


To: ViperChick Secret Agent 006.9 who wrote (36741)3/14/1998 10:51:00 PM
From: The Perfect Hedge  Read Replies (1) | Respond to of 58727
 
Can you throw the Bloomberg money flow link this way???GD



To: ViperChick Secret Agent 006.9 who wrote (36741)3/16/1998 10:41:00 AM
From: broken_cookie  Read Replies (3) | Respond to of 58727
 
hi lisa,

I would like to know the formula that Biryini uses....

I believe the Biryini formula goes like this:

Sum of +(number of shares * price traded on uptick) & -(number of shares * price traded on downtick). This is total money flow.

Block money flow only counts the trades of 10,000 shares or greater.

Non block only 9999 or less.

Total money flow = block + non block.

Zero tick trades are not counted.

You need every tick to calculate this and those data feeds are expensive. Cheapest I've found is 250$/month.

For others that maybe using this info to trade:

Positive money flow during accompanying a rise in price is to be expected. And vice versa.

Divergences are interesting. Positive money flow during a price decline is rare and usually resolves with a rise in price quickly.

Negative money flow during a runup is the more common divergence. It can take a long time to resolve. And it can be resolved by positive money flow with a price decline never occuring.

This indicator is considered worthless unless the stock is highly liquid. An average volume of at least 1 million/day and preferably much more is needed. And like any indicator, it tends to work for better for some stocks than others.