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kermit42

12/17/07 5:36 PM

#9275 RE: harr449 #9273

That's a good question. I'm far from IHUB's best chartist and I'm still learning the indicators, but they both, as the name suggests, track money flow.

The CMF smooths out the Acc/Dist line--the stock is being accumulated when it's green. It's been green for a long time, so IMO some big hands are gathering lots of shares.

The MFI tracks the buying/selling of the stock. It tracks where the bulk of the volume is--on the bid or on the ask. We know sometimes the stock moves up hard and down easy (though rarely vice versa). In cases where, let's say, 100,000 moves it up and 10,000 moves it down, most people are holding at a loss.

The MFI can give you some idea of whether most holders are green or red on the stock (and so gives an idea of people's psychology). It also gives over-bought and over-sold signals. We are aproaching oversold on the MFI right now.