Chaikins Money Flow

Chaikin's Money Flow Interpretation:

It indicates buying and selling pressure. When the money flow stays significantly above 0, it indicates buying pressure and vise versa. The divergence between the indicator and the price quote identifies major reversal points and gives strong buy and sell signals.

A bullish divergence occurs when the stock price makes new lows while the indicator fails to make new lows. A bearish divergence occurs when the stock price make new highs while the indicator fails to make new highs.

Chaikin's Money Flow Calculation:

It is calculated from the Accumulation/Distribution indicator. The parameter is the number of days used in the formula. Calculation in histogram mode is identical.

Return from Chaikins Money Flow to Using Indicators

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