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> From: "Bob Jagow" <jagowb@xxxxxxxxxx>
> To: <metastock@xxxxxxxxxxxxx>
> Subject: RE: Money Flow Index
> Date: Wed, 29 Jul 1998 15:25:20 -0700
> Importance: Normal
> Reply-to: metastock@xxxxxxxxxxxxx
>
> On Tue, 28 Jul 1998, Steve Karnish wrote:
>
> > Dear Listees,
> >
> > Is anyone interested in discussing the technical merits of the
> > Money Flow Index? I think it has some potential. I've noticed
> > when applied to the grains, it's the only indicator to
> > successfully trade off the bottom of the current downtrend. As
> > we all know (I hope), oscillators are pretty good at timing you
> > into a short position in a downtrending market and into a long
> > position in an uptrend. Few oscillating indicators can buck the
> > trend and be successful.
> >
> > I've observed that when the MFI hit 0 (zero) in Corn this year
> > (twice and then again yesterday), the market rallied 17 and 35
> > cents (quite the trick in this dismal market). Of course, the
> > sell signals, when it reached 100, were really fantastic trades.
> > (I'm using zero and 100 as buy and sell signals as broad
> > references).
> >
> > So, who's responsible for this index? Has anybody out there
> > used it or incorporated it into daily or intraday analysis? Is
> > anyone interested in a survey of popular technical indicators?
> > I learn something new about technical analysis everyday. The
> > funkymentals have never put a dime in my pockets (with the
> > exception of the time my dentist client had contacts with
> > corrupt high ranking Mexican officials and learned that the Peso
> > would soon be devalued...but, that was a once in a lifetime gift
> > from the trading gods). Please help me with my lesson for the
> > day.
> >
> > Steve Karnish
> > CCT
Dear Steve Karnish :
I use MFI to catch a major bottom top and I found
that it can be very good to use with RSI .
Try to use same nos of days of RSI and MFI and
plot them in the same graph , if the two lines
are almost converge in a point ( I main "almost
", that i think less than several points ) in the
oversell or overbought zone, and than has a V
shape divert on the same day , than the stock is
probably will be at its major bottom or top .
This condition of course doesn't occur so often
but in panic sell condition , it works pretty
good !!!
Take a look to it , good luck !!!
Forrest Ho
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