Money never sleeps: How capital flow reflects the power of supply and demand

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Milk The Cow joined discussion · Sep 24, 2022 15:27

How Capital Flow Reflects The Power 🔋 Of Supply & Demand 🤨

By checking the flows of funds, we can gasp the transactions volume size (direction) or so & the moomoo app "Capital Flow" indicator features make it convenient as a guiding tool for... especially traders .

Let's use $Tesla (TSLA.US)$ as an example :

Order Capital Size are being categorised in:

Extra Large Orders - XL

Large Orders - L

Medium Orders - M

Small Orders - S

How Capital Flow Reflects The Power 🔋 Of Supply & Demand 🤨

As u can see, the Outflow > Inflow = Indicate downtrend for 23/9/2022.

Capital Trend Curve is also categorised into the same respectively size volume as mentioned above with 1 addition curve :

Extra Large

Large

Medium

Small

Overall Trend (Addition- preferred one generally)

Curve Overall Trend indicate downtrend for the day.

Next, we can look into the historical capital flow chart:

No need say, duh ?

Of course it's the same = downtrend.

It's just being presented in a chart form to ur preferences .

All of the above 3 images just showed the data being presented in different forms to ur own preferences of viewing on .

Ok , here is the real historial capital flow data piece in "Details" form that used to form ur beautifully charts or graph :

As u can see, the stock price rallied according to the historial capital flow data. I don't know which idiot institutions/BB go & pumped up the stock all the way from 14/9/2022 till 22/9/2022 when we already expected the FED to raise interest rate with such bad CPI on the 13/9/2022...

& on the 14/9/2022 is the day 'so happened' the biden's news on EV is released & the stock price rallied on the 14/9/2022 ? After just only 1 day fall on the 13/9/2022 ?

Personally, I think they are just asking for it & the current falling is just very minor only.

Welp, that's just all my hypothesis & point of view.

Additional - formula:

Inflow = If stock is traded at the selling price or higher

Outflow = If stock is traded at the purchase price or lower

Net inflow = Inflow - Outflow

Block order net inflow = Net inflow extra large orders + Net inflow large orders

As for net outflow = use dam ur brain 🧠

Important note 📝:

The capital flow does not has anything to do with the final stock price raise or fall result.

Capital flow is the measure of the supply & demand .

So, don't be surprised when price raised on a net outflow day .

Having that said, capital flow is a good measurement for a possible stock price changes, I guess .

That's why don't be overly dependent on 1 indicator .

For more informations on capital flow, check out @Meta Moo post (it got all the basic knowledge ):

Meta Moo :Weigh the power of supply and demand with Capital Flow

DYODD before investing

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whqqq : How do you complete several high-quality articles every day? you are really brilliant!

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Milk The Cow OP whqqq : Ty .
Not everyday, it depends on feels & mood.
Some are because I already got the ideas long time ago but never mentioned out because it may be too sensitive for public view = (a minority point of view/things that ppls don't really like mentioning), thinking quite hard how to put it in a better way.
Moomoo Event reward also give me the motivation drive.
I'm a curious creature & so, I was thinking why not share & learn together on the spot since got reward + = +. Just putting what I learned/discovered new from @Meta Mooeducation into practical usage, although some of them are already known to me long time ago.
Learned many new good moomoo app indicators from @Meta Mootoo .
Lazy to learn more when no reward. So, I take it as a win-win .

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Milk The Cow

DYODD before investing 👌

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