MFI

I got e-mail from Ron McEwan that mentioned a scheme that involved volume-weighted stock prices and a momentum indicator ... and it rang a bell. I don't get too many ringing bells, these days. Since I usually forget everything that's on gummy-stuff, I did a search and found Money Flow Index. It does involve volume-weighting of stock prices. Instead of P you use P*V. It's also (somehow?) associated with "momentum". I forget how ... ** Anyway, to make a long story short, I modified the spreadsheet to calculate the MFI for the DOW stocks and got this: Click to enlarge. ** Now I remember: MFI measures how often the daily "Money Flow" (as measured by P*V) is associated with increases in price. Over the past year, it's 56% of the time, for JPM (according to the chart). If'n we use weekly prices over 5 years, we get this chart: Click to enlarge. See? MFI = 77% for DIS and GE has moved up from last place.