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Strategies & Market Trends : Trading For A Living -- Ignore unavailable to you. Want to Upgrade?

To: Surfer who wrote (456)	6/12/1998 1:35:00 AM
From: R Stevens	Read Replies (1) \| Respond to of 1729

It is true that for every transaction there is a buyer and a seller. But are the transactions taking place at the buyer's price or the seller's price, the bid or the ask. When you watch stocks trade tick for tick on a real time quote set up, as a stock is going up, there are lots of buyers and the trades take place at the asking price, because a majority of buyers are competing for a minority of shares for sale. When stocks trade down, most of the transactions take place at the bid. Because there are lots of sellers trying to unload their stock. As buyers disappear, sellers lower the price they are willing to sell at so they can get out of the stock. I believe this money flow indicator helps us get an overall picture of whether the transactions are taking place at the bid or the ask, indicative of buying pressure or selling pressure. (this discussion is in regards to Money Flow as mentioned in reply #423)