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Registered User
Joined: 1/2/2005
Posts: 132
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I see that the Moneystream (MS) indicator in Tc2005 needs no additional parameters in a PCF. A TSV would need a period like TSV14 for example, but Moneystream works with the straight MS command.
So what does MS3 and MS5.20 (for example) mean?
Thanks,
Dhoward
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Administration
Joined: 9/30/2004
Posts: 9,187
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MS3 is a 3 day average of MS. MS5.20 is the 5 day average of MS 20 days ago.
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Registered User
Joined: 1/2/2005
Posts: 132
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Thanks! For some reason this just wasn't intuitive to me.
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Registered User
Joined: 3/15/2005
Posts: 5
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. . . so if I want to use a daily Moneystream indicator, do I use MS1?
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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Yes.
MS1 = MoneyStream today
MS1.1 = MoneyStream One Day Ago (etc)
Be careful using MS in PCFs. It is a cumulative indicator and the values themselves are meaningless.
- Craig
Here to Help!
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Registered User
Joined: 3/15/2005
Posts: 5
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Wouldn't MS1 in a PCF indicate the strength of money flowing into and out of stocks for the day? If not, what does MS1 in a PCF represent?
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Registered User
Joined: 1/28/2005
Posts: 125
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musicmusic;
MoneyStream has the same objectives as On Balance Volume (OBV).
MoneyStream and On Balance Volume are a running total of VOLUME
i.e. they show if VOLUME is flowing into or out of a given stock.
The rule of thumb is Volume precedes price i.e. "Smart money can
be seen flowing into the security by a rising OBV. When the public
then moves into the security, both the (price) and OBV will surge
ahead."
From Technical Analysis A to Z.
ejr
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Worden Trainer
Joined: 10/1/2004
Posts: 4,308
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Remember that MoneyStream is a proprietary calculation based on Price and Volume. It has the potential to give some indication of institutional accumulation or distribution.
- Doug
Teaching Online!
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Registered User
Joined: 1/28/2005
Posts: 125
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Doug_H;
From the TeleChart Help Topics Index,
_ MoneyStream is "an indicator with much the same objectives as OBV. CMS is interpreted in the same way you would interpret OBV. Generally, you look for divergences."
_ BOP "tells you whether the underlying action in the trading of a stock is characterized by systematic buying (accumulation) or systematic selling (distribution)."
_ Time Segmented Volume "essentially measures the amount of money flowing in or out of a particular stock."
In answer to musicmusic's question: Wouldn't MS1 in a PCF indicate the strength of money flowing into and out of stocks for the day?
NO! Time Segmented Volume (TSV) is the money flow indicator.
ejr
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Registered User
Joined: 1/1/2005
Posts: 2,645
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As Craig said about MS,
"It is a cumulative indicator and the values themselves are meaningless."
This includes the values of MS1, MS3, and MS5.20. The PCF:
MS1-MS1.1 > 0.0
is one of the simplest, meaningful PCF's one can write. More information is available at:
Dealing with OBV & MS in PCF's - how to interp their "values"
Concepts applicable to Cumulative MS and Cumulative OBV are applicable to Cumulative TSV. Concepts applicable to the oscillator TSV1 are applicable to the oscillator MS1-MS1.1 and the oscillator OBV1-OBV1.1. For example, if TSV1 is indicative of money flowing into or out of stocks for the day, then so is MS1-MS1.1 as is OBV1-OBV1.1. If an increase in Cumulative MS or Cumulative OBV is indicative of share accumulation, then so is an increase in Cumulative TSV.
Thanks,
Jim Murphy
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