What is MSP ALGO money flow analytics?
Stock market analytics is an encircling and multifaceted range of analysis that uses statistics, predictive modeling and ALGO - HFT learning techniques to find meaningful patterns and knowledge in recorded data. It is a way to do interpretations of data, and receive communication of meaningful patterns in order to get advance warning signals to the trader before the main move commence. It is priceless in areas rich with data, and relies on the concurrent application of computer programming, statistics, and do analytical research to quantify performance of a stock. Stock market analytics predict future price action based on institutional buying and selling patterns, and improve trading performance ten fold.
MSP ALGO Money flow follow the secret exchange where huge transactions are traded by hedge funds, insiders, 401K managers; essentially large funds that trade using off-exchange platforms. This exchange is hidden from the public and allow big money to trade stocks anonymously. Institutions are the top 10% of big players who conduct large trades without showing their hand to the public. Institutions also use HFT operators (High Frequency Traders).
By watching MSP ALGO Money Flow we have the ability to detect what big institutional investors are doing in addition to what's going on within the regular exchanges, like the Nasdaq and the NY Stock Exchange. We expose these transactions to investors, hedge funds and traders that would not be able to see the hidden money flow in real - time and also by using 10 minute analytical reports containing data on the billions of dollars being invested in a security. Money flow reports are broken down into intraday, daily, weekly, monthly and yearly calculations.
The Money Flow report track buying and selling by the top 10% only, the movers and shakers. Free money flow reports offered by a few news sites contain all buy and sell orders for the day, which can create an illusion of predicting the next price action. There reports contain the 90% of orders that are displayed to the public and does not have any orders from the hidden exchanges. MSP ALGO Money Flow only follow the 10% of trades hidden from the public and ignore 90% of the order flow provided to the public.
The Money Flow report contains the following columns:
1) Symbol - stock ticker
a) Signals - An arrow displays if the stock as a whole for the day is bullish or bearish. A green up arrow indicates that the stock is currently bullish. A red down arrow indicates that the stock is currently bearish. Bullish means more money is going in than out. Bearish means more money is going out that in.
2) Price - Current price of the stock
3) Buy Volume - Volume of transactions that occurred on the buy side
4) Sell Volume - Volume of transactions that occurred on the sell side
5) Money Inflow - Total of the transactions that occurred on the buy side
6) Money Outflow - Total of the transactions that occurred on the sell side
7) Flux - Raw analysis of current price action excluding the overall day. What is happening at the moment is not indicative of what will happen in the future. Institutions buy and sell all day long
8) Short Long/Signal ALGO - Short long signal algo is monitoring the money flow for reversals. It is detecting whether based on current price action a short or long is pending and price may reverse.
9) Advance Warning ALGO - Advance warning algo is monitoring the money flow for reversals. It is detecting whether based on current price action a short or long is pending and price may reverse.
10) Ratio - A ratio is a relationship between two quantities or numbers, normally expressed as the quotient of one divided by the other. The first number is the inflow the second number is the outflow. So the ratio is comparing the amount of money going into a stock vs the amount of money going out of a stock. It is a metric that measures the amount of money going in vs out. Example $4 is going into a stock vs $1 is going out of a stock; the ratio would be displayed as 4:1. If $1 is going into a stock vs $4 going out of a stock the ratio would be displayed as 1:4. So in a nutshell if you see 4:1 ratio, then out of every $5 transaction on average $4 is a buy order and $1 is a sell order.
11) Price Action Divergence - A divergence is basically the difference between two or more things split off from each other. Price action divergence is monitoring the relationship between the current move vs prior moves to detect weakness or strength in an anticipated move. It has a scale between 1.00 to -1.00. If a stock is bullish and the divergence goes negative then there is selling in the pop. If a stock is bearish and the divergence goes positive then there is buying on the dip.
12) Buy Price -The buy price column displays where the buying is commencing on a stock.
13) Sell Price -The sell price column displays where the selling is commencing on a stock.
How to use MSP ALGO Money Flow Scanner?
The best way to use the money flow scanner to gauge future price action is by looking at the ratio and divergence columns. You are looking for stocks with a high ratio on the buy or sell side. Stocks with a high ratio will be color coded in red for bearish or green for bullish. A bearish ratio means there are more sellers than buyers. A bullish ratio means there are more buyers than sellers. By looking at these ratios you can tell if lots of money is flowing in or out of a stock and at what price; if looking for the best setups during the day.
Stocks with a high or low divergence are also color coded in red for bearish or green for bullish. The divergence algo indicator ranges from a positive 1 to a negative 1 or 1.0 to -1.0. It is a good indication if price is near a reversal area. A high divergence in the range of 0.8 to 1.0 usually means that price is going to reverse to the bearish side and the stock is currently bullish. A low divergence in the range of -0.8 to -1.0 usually means that price is going to reverse to the bullish side and the stock is currently bearish. .
Another important thing displayed on the report is where the big boys are buying or selling at the time of the report. If you see a spike in price above the buy price, then you want to wait for price to retest the buy area for a long opportunity, if it holds support. Normally the best long will be below the buy price. Use other tools for confirmation of entry and vice versa for short.