To: NELSON PATRICK COONEY who wrote (114580 ) 4/6/1999 8:10:00 PM From: arthur pritchard Read Replies (3) | Respond to of 176387
OT: Hi, Nelson. (this is kathy) My take on Moneyflow (and Dell Thread-- please correct me and clarify ) is that it gives relative $ weight to the volume of buys and sells. VOLUME: shows how many shares traded, but doesn't let us see whether more people were buying at the low or selling at the high. My understanding is that when moneyflow is positive, more people are buying in when the stock price is rising than are selling during dips. You could have situation where people are buying in ONLY when stock is at its daily low, so money flow wouldn't be so dramatic. But if people are buying in when the price is at its high, then the flow is stronger. This is just my intuitive reasoning --- EXAMPLE (Using AOL because price closed higher than yesterday, but had negative money flow) So a stock price can still rise even if moneyflow is negative ::: - AOL price rose 10pts from 9:55am to 10:10am on moderate volume, - Then took 8 point dip on slightly bigger volume; - light recovery/stabilization of rise on medium volume. I looked at minute-by-minute tracking, and it seems that the volume was not dramatically greater on the dips, but the dips were sustained for a longer period thru the afternoon. It's just that the 20 minute 10 point zoom kept raised the trading range. So it closed higher than yesterday's close. But it had more overall ‘dip' volume than ‘zoom' volume. Therefore negative money flow at the end of the day. So that's why I've been looking at moneyflow. Just to summarize a minute-by-minute chart of volume on the way up volume on the dips. But, I could be wrong. Yours truly, Kathy O.