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#MoneyFlowIndex:
In this thread will try and cover What is Money Flow Index & how to read the Money Flow Index and It's importance in Stock Investing - I repeat it's Investing Only.
Will explain the concept and post few examples.
Retweet is your Choice and not compulsion.
In this thread will try and cover What is Money Flow Index & how to read the Money Flow Index and It's importance in Stock Investing - I repeat it's Investing Only.
Will explain the concept and post few examples.
Retweet is your Choice and not compulsion.
MFI is an oscillator used to calculate the movement of money i.e., Over Bought or Over Sold Situations.
It has a range of 0 to 100.
Where below 20 being considered as Over Sold Zone and Above 80 being considered as Over Bought Situation.
It has a range of 0 to 100.
Where below 20 being considered as Over Sold Zone and Above 80 being considered as Over Bought Situation.
When Price Of a Stock Moves Up, but Money Flow keeps coming downwards, it indicates that the smart money is exiting or the rise is price will not sustain - hence as an investor one should look at capitalising by exiting on rally.
When the price of stock moves down or consolidates and Money Flow shows over sold or starts it's movement towards upward, then it's an indication of buying in the counter and one should expect a upward rise in price
But if Price comes down and MFI also moves down then fall comes
But if Price comes down and MFI also moves down then fall comes
Lets look at #MotaBhai Chart with MFI as an Indicator.
Red zone on Top is Over Bought , then we see Rise In Price but MFI going down and stabilising. This shows that the rise was created and money has actually moved out on rally.
So this clarifies how Nifty is managed by RIL.
Red zone on Top is Over Bought , then we see Rise In Price but MFI going down and stabilising. This shows that the rise was created and money has actually moved out on rally.
So this clarifies how Nifty is managed by RIL.
#TataMotors:
Price fell , over sold zone indicated consolidation and buying. (Green Zone).
One should expect a reversal, considering the over selling some in this counter.
Price fell , over sold zone indicated consolidation and buying. (Green Zone).
One should expect a reversal, considering the over selling some in this counter.
End of Chapter.
Explanations are purely basis my Observation of Money Flow Index with Price Action and basis that I have written about it.
Technical books might not necessarily give similar explanations.
Thank You for reading and following.
Explanations are purely basis my Observation of Money Flow Index with Price Action and basis that I have written about it.
Technical books might not necessarily give similar explanations.
Thank You for reading and following.
Forgot to Add #YesBank.
Despite the rise in Price, the Monthly MFI indicates Money flowing Out. While Daily till yesterday MFI close showed Money Flowing In for last One Week and Today we saw the News and the Move in Price. So at higher levels people may take exit calls.
Despite the rise in Price, the Monthly MFI indicates Money flowing Out. While Daily till yesterday MFI close showed Money Flowing In for last One Week and Today we saw the News and the Move in Price. So at higher levels people may take exit calls.
All my teachings are basis my observations and not from any of the technical analysis books. Hence I write in a language which would be understood by a Lay Man and will always try to explain the important points, rather than Theory.
