The calculation formula of net capital outflow: inflow capital-outflow capital. If it is positive, it means a net inflow of capital; If it is negative, it means a net outflow of capital. The turnover when rising is counted as inflow funds, and the turnover when falling is counted as outflow funds.

In general, the capital flow is very close to the rising and falling trend of the index, but in the following two cases, the capital flow index has obvious guiding significance:

1, the flow of funds on that day is opposite to the index. For example, the overall index of the sector fell throughout the day, but the flow of funds showed that the net inflow of funds throughout the day was positive.

2. There is a big deviation between the flow of funds on that day and the rise and fall of the index. For example, the all-day index rose higher, but the actual net inflow of funds was very small.

When the capital flow deviates from the index fluctuation, the capital flow can better reflect the actual situation of the market than the index fluctuation.