Volume in Time book companion

[xavik]

The Money Flow which is based on EV (and on a few not published tricks) ...

I was planning on coding myself the Total Money Flow the way it's explained in the book. Does this mean I won't obtain the same values as the ones you publish here?

[Pascal]

I was planning on coding myself the Total Money Flow the way it's explained in the book. Does this mean I won't obtain the same values as the ones you publish here?

Hi Xavik,


Only the Effective Volume, the Total Effective Volume, the Effective Ratio and the Active Boundaries indicators are fully explained in the VIT book.

The sectors based Money Flow is derived from the above indicators, but not fully explained in the book.

However it is not that difficult to do: the Total Money Flow based on the EV calculation is the EV figure multiplied by the price. When you calculate that for a sector, you need to weigh each stock. You can use a capitalization based weight, a fixed weight or any other method you can think of. For the XLX ETFs for example, I use the weights that are officially published by the S&P. That is you to decide.

The main difficulty is how to code the EV indicator, but many developers could do it.



Pascal