Money Flow is used to measure whether money are coming in the market or investors are pulling the money out of the market. Money Flow is volume based indicator and by putting in simple words, Money Flow is the trading volume represented in dollars. Volume represents number of shares traded over specified period of time and Money Flow represents amount of money (number of shares times price of shares) traded over specified period of time.

Since volume and money flow are exactly the same thing in their nature represented in different measurements, when we mention volume or money flow in our commentary, we mean volume and money flow at the same time. We use volume and money flow terminology for easier understanding. As an example, for traders, it is easier to talk about volume surges than about money flow surges. At the same time it is easier to understand bullish and bearish money flow (money coming in or out of the market) rather than bullish and bearish volume.

There are number of technical indicators used to analyze volume and money flow. In our market companies we use SBV (Selling/Buying Volume) Oscillator, SBV Flow and Advance/Decline Volume. All of these indicators could be used to analyze volume and money flow. Basic principles behind money flow analysis via SBV are

- Positive SBV would indicate higher pressure of bullish trader. Controversially, negative SBV would point to the stronger pressure of bearish traders.
- Declining SBV would point to a drop in pressure of the bullish traders and increase in pressure of the bearish traders. Respectfully, advancing SBV would point to a drop in pressure of the bearish traders and increase in pressure of the bullish traders.

Various combinations of the two factors above help define whether Money Flow is positive (bullish) or negative (bearish).