Chaikin Money Flow Energies Technical Analysis & Money Flow Trading Signals

Developed by Marc Chaikin

This an oscillator which measure the Accumulation/distribution of money that is flowing into and out of a energies.

The indicator is based on the fact that the nearer the closing energies price is to the high of the energies price, the more the accumulation of the energies.

Also the nearer the closing energies price is to the low of the energies price, the more the distribution of the energies.

Chaikin Money Flow will be positive if energies price consistently closes above the bar's midpoint with increasing volume.

However, if energies price consistently closes below the bar's midpoint with increasing volume the indicator will be negative.

Energies Technical Analysis & Generating Trading Signals

Buy Trading Signal

A crossover of above zero signifies accumulation of a energies. A value of above +10 is a buy/bullish signal. Values above +20 signify a strong upward trending market.

Buy Trading Signal

Sell Trading Signal

A Zero line cross of below zero signifies distribution of a energies. A value of below -10 is a short/sell signal. Values below -20 signify a strong downward trending market.

Sell Trading Signal

Energies Trend Line break with Chaikin's money Flow

The money flow can be used to confirm energies trend line breaks or support/resistance level breaks.

If energies price breaks an upward energies trend line, Energies traders should then wait for a confirmation signal from the indicator values of below -10.

Energies Trendline Break

If energies price breaks an downward energies trend line, Energies traders should then wait for a confirmation signal from indicator values of above +10.

Energies Trendline Break

Divergence Energies

A divergence between this indicator & energies price often signals a pending reversal in market direction. However as with all divergences its best to wait for confirmation signals before trading the divergence.

A bullish divergence signal occurs when the price makes lower low while the Chaikin's Money Flow makes a higher low.

A bearish divergence trading signal forms when price makes a higher high while the Chaikin Money Flow technical indicator makes lower high.