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

New! Comments

Have your say about what you just read! Leave me a comment in the box below.







From the writers...

"It is far better to show you how to trade on your own, than it is for you to depend on us to tell you what to trade and when"


Your E-mail Address
Your First Name
Then

Don't worry — your e-mail address is totally secure.
I promise to use it only to send you Successful Forex Traders.


Get Chitika | Premium


The top five Trading Indicators as voted by you guys

Bollinger Bands
Stochastics
MACD
Moving Average
Parabolic SAR

To vote for what you find to be the most useful or for a full list of indicators please click here



If you have found this website helpful, please donate to show your support. The average donation is £7