The determination of the proper magnetic form factors for use in the analysis of diffuse‐scattering data is discussed, and that information which is immediately available from such data is considered. Apparent discrepancies between the results of diffuse scattering and diffraction experiments on ferromagnetic Ni‐Cu alloys are resolved. It is shown that the data indicate that the negative spin density usually attributed to conduction electrons instead arises largely from the overlap of localized wavefunctions, as was first suggested by Moon.