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Technology Stocks : VALENCE TECHNOLOGY (VLNC) -- Ignore unavailable to you. Want to Upgrade?

To: I. N. Vester who wrote (2439)	3/18/1998 9:55:00 PM
From: Larry Brubaker	Read Replies (1) \| Respond to of 27311

IN: bigcharts.com describes the Money Flow Indicator as "attempts to measure the amount of money buying a stock vs. the amount of money selling a stock. It does this by assuming that when a stock closes higher than its open, all volume associated with that trading period results from buyers. It further assumes that when a stock closes lower than its open all volume associated with that trading period results from sellers. Although these assumptions are overly simplistic, money flow can be a useful indicator when analyzing the general buying and selling pressure on a stock." So, given this definition, today was a negative day for Big Charts Money Flow Indicator for Valence since the stock closed lower than it opened. I would assume that Telescan has a different definition for money flow in order to generate a sharp uptick in the indicator today.

To: I. N. Vester who wrote (2439)	3/18/1998 10:12:00 PM
From: Greg McDaniel	Read Replies (1) \| Respond to of 27311

Below is the excerpt from the Telescan online help manual: Definition: This indicator, developed by Marc Chaikin, is a measure of money "flowing" into a stock or out of a stock, similar to the concept of accumulation/distribution: The calculation determines where the stock closed today, in relation to its range for the day (high price - low price). That value is then multiplied by today's volume: (close - low) - (high - close) X Volume ------------------------------------------------------------ high - low Therefore, if a stock's closing price is closer to the high of the day than to the low of the day, a positive value will be multiplied by the volume. But if a stock's closing price is closer to the low of the day than to the high of the day, a negative value will be multiplied by the volume. Now this calculation is made for the last 21 days, and those values totaled. That sum is divided by the total of the stock's volume for the last 21 days to arrive at the Chaikin Money Flow indicator. High values indicate money moving into a stock (buying pressure), and low (negative) values indicate money moving out of a stock (selling pressure).