Trade Stock Indices

Learn Stock Indices Trading

Chaikins Money Flow Indices Technical Analysis and Money Flow Indices Trading Signals

Developed by Marc Chaikin


This an oscillator MT5 stock indices indicator which measure the Accumulation/distribution of money that is flowing into and out of indices.


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


Also the nearer the closing stock indexes price is to the low of the indices price, the more the distribution of indices.

Chaikins Money Flow Indices Indicator


Chaikins Money Flow will be positive if stock indexes price consistently closes above the bar's midpoint with increasing volume.


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



Indices Technical Analysis and Generating Indices Trading Signals


Buy Indices Trading Signal

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

Buy Indices Trading Signal Chaikins Money Flow indicator

Buy Indices Trading Signal


Sell Indices Trading Signal

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

Sell Indices Trading Signal

Sell Indices Trading Signal


Broker


Indices Trend Line break with Chaikin’s money Flow



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


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

indices trend line break sell indices trading signal

Indices Trend Line Break - Sell Indices Trading Signal


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

indices trend line break buy indices trading signal

Indices Trend Line Break - Buy Indices Trading Signal



Divergence Indices Trading

A divergence between this MetaTrader 5 stock indices indicator and stock indexes price often signals a pending reversal in market direction. However as with all divergences its best to wait for confirmation signals before indices trading the divergence.


A bullish divergence signal occurs when stock indexes price makes a lower low while the Chaikins Money Flow makes a higher low.


A bearish divergence signal occurs when stock indexes price makes a higher high while the Chaikins Money Flow makes a lower high.

 

Forex Seminar Gala


Forex Seminar




Broker