Replies to post #127855 on Zeev's Turnips Patch-No Politics (ZEEV)

[greenehugh]

FWIW: I always check block moneyflow & OBV in all ST timeframes before going long/short. That coupled with volume and ROC determine whether I take the entry or not. IMO, its a good check on the rationality of a trade. On a macro basis I hedge for terrorism and forget the macro and mythical Fed interventions. After the breakeven stop is in, who cares!

[mlsoft]

gtober...

The reason they have not worked during this rally is that the whole rally, from its inception in March, has been artificial. Neither fundamentals nor technicals (including indicators) have worked well at all because they are based on how the markets have acted in the past, and we have never had a lasting rally that was artificially induced before.

Like many indicators, Money Flow tells you little except when it diverges from the price action in a stock - the bigger the divergence the more critical the warning. My experience is that it is not very useful as a timing tool, but it can alert you when a stock is undergoing distribution as it goes up or accumulation as it goes down, and it is a warning worth heeding. Money Flow got me out of INTC very near the top as the bubble was ending (INTC was making new highs but Money Flow was tanking) and it has put me into some very good swing trades both long and short.

mlsoft