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.
Moneyflow is a mature technical index in the world.
The calculation method is very simple. For example, in the minute of 9:50, the steel plate index rose compared with the previous minute, so the turnover in the minute of 9:50 is counted as capital inflow; If it is lower than the previous minute, it is counted as capital outflow; If the index has not changed compared with the previous minute, it will not be counted.
Calculated once every minute and summarized once a day, the difference between capital inflow and outflow is the net capital inflow of the day.
The significance of this calculation method lies in: the volume generated when the index is rising is the driving force for the index to rise, and this volume is defined as capital inflow; The trading volume when the index falls is the power to push the index down, which is defined as capital outflow; The difference between the two forces on that day is the net force that pushes the index up after the two forces cancel each other out, that is, the net inflow of funds of the plate on that day.
In other words, the capital flow measures the power to push the index up and down, reflecting people's pessimism or optimism about the industry.