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Gaetano A. Evangelista wrote:
> Another good money flow indicator was developed by Marc Chaikin back
> in the late 70's or early 80's. I've done extensive studies of volume
> and I've found his indicator to work very well with larger cap stocks
> and indexes like the S&P. Here's the formula with a brief explanation.
Volume*((close-low)-(high-close)/(high-low)).
Once this figure is calculated, you then:
sum above total by x number of days / sum of volume over x number of
days.
The indicator works like this: A ratio of total daily volume is added
when the close is in the top 1/2 of daily range and subtracted when the
close is below the midpoint of the daily range.
According to Chaikin, persistent readings above zero show accumulation
in the stock while presistent readings below zero show distribution.
Hope this helps.
Curt Fox
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