Chaikins Money Flow Silver 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 silver.
The indicator is based on the fact that the nearer the closing xagusd trading price is to the high of the xagusd trading price, the more the accumulation of silver.
Also the nearer the closing xagusd trading price is to the low of the xagusd trading price, the more the distribution of silver.
Chaikins Money Flow will be positive if xagusd price consistently closes above the bar's midpoint with increasing volume.
However, if xagusd price consistently closes below the bar's midpoint with increasing volume the indicator will be negative.
Silver Technical Analysis & Generating Trading Signals
Buy Silver Signal
A crossover of above zero signifies accumulation of silver. A value of above +10 is a buy/bullish signal. Values above +20 signify a strong upwards trending market.
Buy Trading Signal
Sell Silver Signal
A Zero line cross of below zero signifies distribution of silver. A value of below -10 is a short/sell silver signal. Values below -20 signify a strong downward trending market.
Sell Trading Signal
Silver Trend Line break with Chaikin’s money Flow
The money flow can be used to confirm silver trend line breaks-out or support/resistance level breaks-out.
If xagusd trading price breaks an upward silver trend line, Silver traders should then wait for a confirmation signal from the indicator values of below -10.
Silver Trendline Break - Sell Trading Signal
If xagusd trading price breaks an downward silver trend line, Silver traders should then wait for a confirmation signal from indicator values of above +10.
Silver Trendline Break - Buy Trading Signal
Divergence Silver Trading
A divergence between this indicator & xagusd 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 xagusd trading price makes a lower low while the Chaikins Money Flow makes a higher low.
A bearish divergence signal occurs when xagusd trading price makes a higher high while the Chaikins Money Flow makes a lower high.
