inflow and outflow of funds;
Many people have a certain misunderstanding of this indicator in stocks. Let's look at an example first:
For example, Ping An's 4-hour trading time is 80 minutes up, 125 minutes down, and 35 minutes if it doesn't fall.
Outflow of funds : the sum of the volume in the falling 125 minutes
Inflow of funds : the sum of the volume in the 80 minutes of the rise
35 minutes of neither falling nor rising will not be counted.
Summary: The outflow of funds and the inflow of funds are subtracted , and the larger amount represents the outflow or inflow of funds on the day
1. The capital outflow is relatively large, then the capital is a net outflow at this time, net outflow = capital outflow - capital inflow
2. The capital inflow is relatively large, then the capital is a net inflow at this time, net inflow = capital inflow - capital outflow
After reading the description above, you should have a general understanding. However, you will often encounter a situation: even though you see a net inflow of funds, but the stock price continues to fall, how is this caused?
First of all, the amount of capital needs a net inflow, then the inflow of capital is relatively large, so it can be concluded that the stock price rises for a long time, that is, it continues to buy,
However, if in the last ten minutes of the close, there is a bad news. At this time, the buying power is gone, and the selling price will keep falling.
Because the priority transaction is at a lower price, those who are rushing to sell will set a position with a lower selling price, and the stock price will slowly drop, but if the price drops a lot, no one will buy it. (Or there are few people who buy and many people who sell), then it will continue to decline. At this time, the above phenomenon occurs: the stock price falls, but there is a net inflow that day.
Another reason for this phenomenon is that the bulls (buyers) keep raising the stock price, and the bears (sellers) keep pushing down the stock prices, and the bears are stronger. The next day, the bulls will continue to buy, Raise the stock price.
However, the inflow and outflow indicator of funds cannot have a great reference value for the trend of the next day, and its significance is very limited.