Forex Trading Handbook - For currency trading and forex education.

Forex News: 22:09:22 GMT: Forex Research - US Dollar: Bullish Break May Signal Additional Gains To Come 21:05:16 GMT: Forex Market News - Canadian dollar unable to escape funk, ends lower 20:19:56 GMT: FX Blog - Morning Report 20:16:36 GMT: FX Blog- Market Snapshot Far East Open for 8 August 2008 20:08:36 GMT: FOREX NEWS-Dollar gains on strong housing data, ECB rate view 19:21:13 GMT: Forex Blog - Confusing Commodity Bubble Bursting With US Growth .............SPECIAL OFFER!...Get GVI forex for three months Plus one month of FX news free when you Open an account with any Global-View Advertiser................................................................ ...............

....................................... >>>NEW! FREE! two extensive video courses on trading TRADING Basics...and... Forex Trading Course ...........................................

...........................................Career Builders Job Directory CLICK for Jobs ..............SPECIAL OFFER!... Thomson TFN FOREX NEWS only $300/yr via Paypal................................................................. Two NEW Forex Job Opportunities!... CLICK for Details..................................................................................................................................

.................................... >>> Check out NEW Forex Signals Service - - FX-Forecaster <<<.............................................................................................................................................................................................................................

WebTicker by Mioplanet www.mioplanet.com

Search In...

Starts with

Ends with

Full Word

Categories

Basics of Trading Course
Module 1: Technical Analysis Basics
Module 2: Chart Patterns
Module 3: Technical Indicators
Module 4: Candlestick Chart Formations
Module 5: The Psychology of Trading
Module 6: Money Management
Module 7: Position Sizing
Module 8: Intro to Fundamental Analysis
Module 9: Economic Releases that Move the Markets
Module 9a: Pulling It All Together
Forex Trading Course
Module 1: The Basics of Forex Trading
Module 2: The Logistics of Forex Trading
Module 3: The Logistics of Forex Trading Part 2
Module 4: What Moves the Forex Market
Module 5: Trading the US Dollar
Module 6: Trading the Euro
Module 7: Trading the Japanese Yen
Currency Futures
Market Terminology
Options
Posting a Forum Chart
Trade Execution
Trading Fundamentals
Economic Indicators
Flows/Central Banks
Trading Technicals
Charting
Trading Techniques

Found In....

Category Name: Trading Technicals

» Sub-Category Name: Charting

Chaikin Money Flow

By: vss2000.com

Chaikin Money Flow ( CMF )

The Chaikin Money Flow is based upon the assumption that a bullish stock will have a relatively high close price within its daily range and have increasing volume. However, if a stock consistently closed with a relatively low close price within its daily range with high volume, this would be indicative of a weak security. There is pressure to buy when a stock closes in the upper half of a period's range and there is selling pressure when a stock closes in the lower half of the period's trading range.

An obvious bearish signal is when Chaikin Money Flow is less than zero. A reading of less than zero indicates that a security is under selling pressure or experiencing distribution.

A second potentially bearish signal is the length of time that Chaikin Money Flow has remained less than zero. The longer it remains negative, the greater the evidence of sustained selling pressure or distribution.

The third potentially bearish signal is the degree of selling pressure. This can be determined by the oscillator's absolute level. Readings on either side of the zero line or plus or minus 0.10 are usually not considered strong enough to warrant either a bullish or bearish signal. Once the indicator moves below -0.10, the degree selling pressure begins to warrant a bearish signal. Likewise, a move above 0.10 would be significant enough to warrant a bullish signal.

Marc Chaikin considers a reading below -0.25 to be indicative of strong selling pressure. Conversely, a reading above 0.25 is considered to be indicative of strong buying pressure.

The Chaikin Money Flow is based upon the assumption that a bullish stock will have a relatively high close price within its daily range and have increasing volume. This condition would be indicative of a strong security. However, if it consistently closed with a relatively low close price within its daily range and high volume, this would be indicative of a weak security.

WARNING: FOREIGN EXCHANGE TRADING AND INVESTMENT IN DERIVATIVES CAN BE VERY SPECULATIVE AND MAY RESULT IN LOSSES AS WELL AS PROFITS. FOREIGN EXCHANGE AND DERIVATIVES TRADING IS NOT SUITABLE FOR MANY MEMBERS OF THE PUBLIC AND ONLY RISK CAPITAL SHOULD BE APPLIED. THE WEBSITE DOES NOT TAKE INTO ACCOUNT SPECIAL INVESTMENT GOALS, THE FINANCIAL SITUATION OR SPECIFIC REQUIREMENTS OF INDIVIDUAL USERS. YOU SHOULD CAREFULLY CONSIDER YOUR FINANCIAL SITUATION AND CONSULT YOUR FINANCIAL ADVISORS AS TO THE SUITABILITY TO YOUR SITUATION PRIOR TO MAKING ANY INVESTMENT OR ENTERING INTO ANY TRANSACTIONS.