StockEagle Study#19 (Weighted Money Flow/In)          

This study shows the stocks which trade above their closing price from yesterday
combined with high volume, which usually indicates a rise to a new price area.
It shows the accumulated money flow amount compared to the current total equity.
This can indicate profitable long opportunities when you enter near the bottom!
(If the database is out of date this study is disabled, bring the database up-to-date)

Example:
827.RMBS

RMBS has received today so far a total of 37.684 million$ or 827%
of its total equity of 4.55448 billion$.(based on million against billion!)
The equity is updated daily by multiplying the last closing price (52 1/2)
with the number of comon shares (86.75 mill shares)
(for graph and database details see below)

This study shows the money flow as percentage of the total equity.

Standard Money Flow algorithm:
The usual "blind" algorithm to get the daily money flow simply calculates
the change in equity
Example:
Closing price is 10
Stock was trading mostly around 9 1/2.
At the end of the day there is one trade at 10 1/8 for 100 shares.
The usual algorithm would take the 1/8 increase and multiply and conclude:
today money was flowing into the stock,
which is wrong because most of the day it has traded below the closing price
(meaning money flowing OUT).

StockEagle Weighted Money Flow algorithm:
StockEagle will use a more sophisticated method to calculate the money flow,
which takes the price AND the volume into account.
Example:
Stock XYZ has currently 10 mill shares with the last closing price of 12$.
The current equity is 10mill* 12$ = 120 Mill $.
Now the following trades take place:
Trade DayFlow/Total Comment
1000 @ 12: 0 no mony in or out, just change of owner
1200 @ 12 1/4 +300$/+300$ now 1200 x 0.25=300$ have been added to equity
1600 @ 12 1/8 +200$/+500$ now another 200$ added, 500 total so far
1600 @ 11 3/4 -400/+100$ now 1600x.25=400$ have been take out
overall day balance still positive at +100$
1000 @ 11 7/8 -125/-25 now 1000x-0.125=-125$ have been take out,
overall balance is now at -25$
3000 @ 11 1/2 -1500/-1525 big money flow out 3000x.5=-1500
... and so on accumulating the day flow.

StockEagle will normalize the dollar amount of the day flow by dividing at against the total equity!
One million$ flowing into MSFT is nothing, but could signify a large investment into a smaller stock.
The next day the closing price is then set to 11 1/2 and the flow is calculated from there.
The new equity is now 10mill * 11 1/2=115 Mill $.
Since the day flow is usually very small compared to the entire equity
37.684 million$ money flow compared to 4.55448 billion$ resluts in 827% (instead of 0.827%).
Here is the graph of RMBS discussed above:
Here are the values for RMBS as stored in the database:

Note that the database has to be current to show the correct result.
To check the closing price.see Symbol Info

To see the details of any entry in this study simply click on the symbol and
select "Display Details" from the PopUp menu
(see Show Event Detail for more information)