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ketayun wrote:
>> What exactly does it mean if the block volume is higher on the bid,
>Means someone wants to buy more than sell.
Huh? it means more block trades are crossing at the bid price than at the
ask price. This means block traders are hitting the bid more urgently than
they are taking the offer.
This could be accumulation into weakness OR distribution regardless of
price. Jury is out.
>
> money flow is negative, but price action is positive?
Money flow is negative if more volume is transacted on downticks than is
transacted on upticks.
Example:
Yesterday close = 100
Today:
Open @ $100 with 50,000 shares. Net money flow = 0.
Next trade @ $100.25 with 100 shares = +$0.25 x 100 volume = $25 flowed in.
Next trade @ $100.25 with 10,000 shares = 0 flowed in.
Next trade @ $100.00 with 50,000 shares = -$0.25 x 50,000 = $12,500 flowed
out.
Next trade @ 100.25 with 200 shares = +$0.25 x 200 = $50 flowed in.
Next trade @ 100.50 with 400 shares = +$0.25 x 400 = $100 flowed in.
Day closes here.
Totally, $25 + $50 + $100 = $175 flowed in.
Totally, $12,500 flowed out.
Net net, $12,325 flowed out.
Price closed up 50 cents on the day.
In effect, stock was distributed even though chart packages showed
accumulation.
> Is there a way of calculating a short squeeze?
Dont know.
'Gitanshu
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