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fib_1618 SAYS LOTS LIQUIDITY THIS YEAR?


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#1 Mr Dev

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Posted 12 June 2014 - 01:56 PM

has money flow or liquidity been coming into the markets? is it still ?

that is what we are arguing about folks and .. DAVE continues to argue there's more LIQUIDITY than ever coming in everyday.. as he warned us this morning.

however he will not show us any reference to his perception of this mass market liquidity and here's why he wont.

because he cant.

he can not show us market liquidity or Money FLow because its not there, and as the MoneyFlow indicator shows its been falling quickly since the end of last year where it started
a mass divergence while prices moved to new highs to suck-in folks that think there's never ending liquidity ...the bag holders.

here are the charts so you be the judge of 2014.

enjoy
:bowtie:
Dave feel free to argue your way around the weekly money flows ...for the year.

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Edited by Mr Dev, 12 June 2014 - 02:00 PM.


.. .. ..
Mr Dev

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#2 fib_1618

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Posted 12 June 2014 - 02:48 PM

Dave feel free to argue your way around the weekly money flows ...for the year.

I'm afraid that you may not quite understand what the Chaikin Money Flow indicator is, so I will try to help you out.

The CMF indicator does NOT measure money flow per se...the indicator is based on the assumption that if prices close each day in the upper half of their trading range, on increased volume, that the flow of money (demand) is strong enough in that issue to support higher prices based on the supply that's available. So if prices are rallying, but the CMF is declining, this tells you that even though prices may be closing higher overall day to day, they are settling each day in the lower half of the day's (week's, month's) trading range on declining volume.

It's always a good idea that one should know what an indicator does, and how it's calculated, before deciding to put one's foot in one's mouth on a public message board.

And it's probably not a smart idea either to assume that an indicator's name sake is what it does either.

Silly Dev...your ego is just to large for your own self.

When you're really ready to have a substantive discussion on money flow and it's movements, that may actually be beneficial the board's readers, do let me know.

Oh...gee, wait, you can't...because you put me on ignore and won't be able to read a word of this...too bad.

Fib

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Wise men don't need advice. Fools won't take it. - Benjamin Franklin

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#3 CLK

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Posted 12 June 2014 - 02:52 PM

Fib, You abandoning new highs forecast here ? Looks like the bull case is toast for awhile, news pop was all that was, same old game.

#4 fib_1618

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Posted 12 June 2014 - 03:07 PM

You abandoning new highs forecast here ? Looks like the bull case is toast for awhile, news pop was all that was, same old game.

It's only a well deserved 2/3 day pause to refresh after a breadth thrust.

I wouldn't be surprised to see new highs by early next week just to scorch the near month put speculators.

Fib

Edited by fib_1618, 12 June 2014 - 03:07 PM.

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#5 Mr Dev

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Posted 12 June 2014 - 03:15 PM

sorry i told you before.. and so im not taking off ignore. but feel free to argue your case to those who will listen.

Edited by Mr Dev, 12 June 2014 - 03:15 PM.


.. .. ..
Mr Dev

......trading is basically a simple operation, but you have to be a genius to understand the simplicity.
.....timing,..... is ....everything !
... remember no guessing visit MrDev!

#6 Dex

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Posted 12 June 2014 - 03:27 PM

Dave feel free to argue your way around the weekly money flows ...for the year.

I'm afraid that you may not quite understand what the Chaikin Money Flow indicator is, so I will try to help you out.

The CMF indicator does NOT measure money flow per se...the indicator is based on the assumption that if prices close each day in the upper half of their trading range, on increased volume, that the flow of money (demand) is strong enough in that issue to support higher prices based on the supply that's available. So if prices are rallying, but the CMF is declining, this tells you that even though prices may be closing higher overall day to day, they are settling each day in the lower half of the day's (week's, month's) trading range on declining volume.

It's always a good idea that one should know what an indicator does, and how it's calculated, before deciding to put one's foot in one's mouth on a public message board.

And it's probably not a smart idea either to assume that an indicator's name sake is what it does either.

Silly Dev...your ego is just to large for your own self.

When you're really ready to have a substantive discussion on money flow and it's movements, that may actually be beneficial the board's readers, do let me know.

Oh...gee, wait, you can't...because you put me on ignore and won't be able to read a word of this...too bad.

Fib


How is it Computed?

The following is the formula for the Chaikin Money Flow Indicator:

Step 1 ((Close – Low) – (High – Close)/ (High – Low)) * Volume

Step 2 21 Day Average of Step1 (Daily MF) / 21 Day Average of Volume

In plain English we are computing a one day net positive or negative money flow based on whether a stock closes above or below its’ mid-point for the day, measuring how close to its’ high or low it is at the close, and then relating that to the volume.

By taking a 21 day average of the daily money flow and dividing that by the 21 day average volume we now have the Chaikin Money Flow Oscillator which has boundaries between + 1 and - 1 or + 100 and -100 depending on the software program.
"The secret of life is honesty and fair dealing. If you can fake that, you've got it made. "
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#7 CLK

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Posted 12 June 2014 - 03:32 PM

You abandoning new highs forecast here ? Looks like the bull case is toast for awhile, news pop was all that was, same old game.

It's only a well deserved 2/3 day pause to refresh after a breadth thrust.

I wouldn't be surprised to see new highs by early next week just to scorch the near month put speculators.

Fib




I have to disagree, my Renko chart went to sell, one brick fakeouts are rare, I'd say more selling before any new highs, and with the setup
maybe a lot more selling. I do not see much in the way of breadth thrust, also volume was falling the whole breakout. I think it is prudent to always
be wary of breakouts on news, they usually don't go far. I look for somewhere under the Feb. lows sometime this year. But I don't try to trade those,
few days at a time. I am long for tomorrow, but will look to short if we get a bounce.

#8 James Quillian

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Posted 12 June 2014 - 03:34 PM

Here some additional thoughts on liquidity. What counts in my opinion is cash devoted to buying stocks when the intention is to hold the shares as an investment. Without affirmative action, this is what moves a stock from level A to level B. Buybacks are in that category as are mutual fund/pension fund purchases etc. If selling increases, the absolute amount money in the economy will not help much. Visible trading in stocks has been thin since 2003. The absolute total of money that can possibly buy is like air in a balloon. What matters is whether air is going in or coming out. It works the same way with securities. When the absolute amount is huge but starts declining, liquidity changes from good for the stock market to disastrous. On another note, economists and market technicians almost always act on the basis that one number causes another. The true cause is the incentive on which people are acting. Incentives in the present moment can't be tracked with numbers. The fastest and easiest way to create incentives to buy stocks is to tell a lot of lies. Without lies, what is left are natural free market forces which I don't see helping much right now.

#9 fib_1618

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Posted 12 June 2014 - 03:46 PM

I think it is prudent to always be wary of breakouts on news, they usually don't go far.

Breakouts or breakdowns...it works both ways. Take today's news on Iraq, for example. :)

As far as breadth and volume thrusts are concerned, you may want to take a moment and review the topic I provided on Sunday with respect to the Cumulative Charts and pay special attention to the McClellan Oscillator thrusts on the NAAD and NAUD (initiation), as well as, the NYAD and NYUD (follow through). To save time, I have provided the link here for your further consideration.

In plain English we are computing a one day net positive or negative money flow based on whether a stock closes above or below its’ mid-point for the day, measuring how close to its’ high or low it is at the close, and then relating that to the volume.

So, by this very definition, it is NOT a money flow indicator.

Thank you for your research.

Fib

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#10 SemiBizz

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Posted 12 June 2014 - 04:08 PM

I think it is prudent to always be wary of breakouts on news, they usually don't go far.

Breakouts or breakdowns...it works both ways. Take today's news on Iraq, for example. :)

As far as breadth and volume thrusts are concerned, you may want to take a moment and review the topic I provided on Sunday with respect to the Cumulative Charts and pay special attention to the McClellan Oscillator thrusts on the NAAD and NAUD (initiation), as well as, the NYAD and NYUD (follow through). To save time, I have provided the link here for your further consideration.

In plain English we are computing a one day net positive or negative money flow based on whether a stock closes above or below its' mid-point for the day, measuring how close to its' high or low it is at the close, and then relating that to the volume.

So, by this very definition, it is NOT a money flow indicator.

Thank you for your research.

Fib



And this is T.A malpractice as far as the way volume is being applied.

It is another "Averaging Scheme" - doesn't give us any information about PRICE Expectation. WORTHLESS.

Anybody really use this thing?

:cheer:

Edited by SemiBizz, 12 June 2014 - 04:10 PM.

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