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Month: March 2017

Chalkin Money Flow – Volume Strategy

Chalkin Money Flow – Volume Strategy

Chaikin Money Flow

Rising prices should be accompanied by rising volume, so this formula focuses on expanding volume when prices finish in their upper or lower portion of their daily range and then provides value for the corresponding strength. When closes are in the upper portion of the range and volume is expanding, the values will be high; when closes are in the lower portion of the range, values will be negative.

Chaikin money flow can be used as a short term indicator because it oscillates, but it is more commonly used for seeing divergence. Figure 6 shows how volume was not confirming the continual lower lows (price) in AAPL stock. Chaikin money flow showed a divergence that resulted in a move back higher in the stock

Read more: How To Use Volume To Improve Your Trading | Investopedia http://www.investopedia.com/articles/technical/02/010702.asp#ixzz4bb1vcjzc
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Use Volume To Improve Your Trading

Use Volume To Improve Your Trading

Exhaustion Moves and Volume

In a rising or falling market we can see exhaustion moves. These are generally sharp moves in price combined with a sharp increase in volume, which signal the potential end of a trend. Participants who waited and are afraid of missing more of the move pile in at market tops, exhausting the number of buyers. At a market bottom, falling prices eventually force out large numbers of traders, resulting in volatility and increased volume. We will see a decrease in volume after the spike in these situations, but how volume continues to play out over the next days, weeks and months can be analyzed by using the other volume guidelines. (For related reading, take a look at

Read more: How To Use Volume To Improve Your Trading | Investopedia http://www.investopedia.com/articles/technical/02/010702.asp#ixzz4bb1oDvHS
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