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 Gold Customer
Joined: 3/11/2005
Posts: 1
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I have no idea of the Money stream algorithm but it has to use V,H,L,C in some convoluted way.
If you look at a S&P 500 MONTHLY chart of Money Stream it is one deteriorating presentation.
What is it telling us now?
It looks like money has and is still coming out of this Market but we keep skying upward.
If this indicator had any value one would be exiting this market at least based on its (MS) performance to date.
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Registered User
Joined: 11/1/2005
Posts: 240
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you will need to look at the daily chart to see how it reacts to the November high.
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Registered User
Joined: 2/12/2005
Posts: 1
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QUOTE (jimstacy) you will need to look at the daily chart to see how it reacts to the November high.
It appears that Money Stream has been lagged price (S&P 500). MS was not able to lead (or follow) prices to new recent highs, this is seen in multiple time frames. Is this a potential bearish divergence between MS and price? Or is this a misinterpretation?
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Registered User
Joined: 11/1/2005
Posts: 240
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MS has been lagging price, remember this move started in the 700 area, prices sold today with the increase in price will create more pressureto the down side than the buying at 700 area created to the up side.at this point waiting for price to signal the direction is more important.this move above the trend lines(November high) is a new high for this time frame, it may test the breakout or move to the next supply area.MS is just a guide to what is happening.
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Registered User
Joined: 9/22/2005
Posts: 849
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Here is the way I see SP-500 and Money Stream.
From mid 1907 to mid 1909 Money Stream was lagging behind it’s 8 bar moving average . (See Monthly
Chart)
Then beginning in mid 1909 until the second quarter of 2010 led it’s moving average when it again
turned around and lagged behind the moving average until the third quarter of 2010 (See Weekly Chart)
From then until the present it has led the moving average, (See Daily Chart)
When Money Stream lags behind the moving average, it indicates that money is being withdrawn from
the market. Conversely, when it is leading the moving average the indication is that money is moving i
into the market
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Registered User
Joined: 11/1/2005
Posts: 240
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Looks much easier than my way, I learned the old way, position of price in trend lines relative to volume.
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