Chaikin Money Flow Index - page 6

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This is chalkin-money-flow-index-cmf_v1 histo

 

Guys,

Wherever I looked it seems that Chaikin money flow is an offspring of Accumulation/Distribution (also developed by Marc Chaikin) and in that case it is calculated the following way :

1. Money Flow Multiplier = [(Close - Low) - (High - Close)] /(High - Low)

2. Money Flow Volume = Money Flow Multiplier x Volume for the Period

3. 20-period CMF = 20-period Sum of Money Flow Volume / 20 period Sum of Volume

The difference is in the first part when the cmf found on this thread calculate Close-Open while it seems that it should be Close-Low. In that case the histo version should look something like this (this is a 30 period CMF)

Files:
chalkin_money_flow_histo_2.mq4  8 kb
cmf.gif  35 kb
 

C m f v.1 histo

Hello mr tools, thanks for the new new one in post 53, it gives the same signal.

 

2 questions for mladen

HELLO MLADEN,

i would appreciate your kind response to these questions ;

1 ) i perceive you have strong reservations about using VOLUME indicators in generating signals in FOREX based on some comments in the past, however do think the signals of CHAIKIN MONEY FLOW are valid for forex ?

2 ) i am considering using the C M F indicator in post 53 as an additional filter, however i would like to know if your observation about its formula where CLOSE - OPEN is used instead of CLOSE - LOW implies there is an error in the formula of this particular version ?

THANK YOU VERY MUCH FOR YOUR INVALUABLE CONTRIBUTIONS

 

Questions

HELLO MLADEN,

Just to remind you of POST 56, THANKS IN ADVANCE

 

HELLO MLADEN,

Just to remind you again of post 56, THANKS FOR YOUR SERVICE

 

winner246

1. As a simple test : set the chart to 1 hour and you will see a clear periodicity in "volumes". The "volume" starts to rise at European session open and settles at NY session end, so the "volume" in forex just show that the activity as far as price changes (ticks - not necessary changed prices) in those sessions is higher than in Assian session and does not show the actuall volume

2. The formula I found clearly states that low should be used and not open. Checked the formula for tradestation, metastock, welth lab, amibroker and ninja trader and they all are the same. Here is one interesting article (with that formula again) about Chaikin money flow The Chaikin Money Flow

winner246:
HELLO MLADEN,

i would appreciate your kind response to these questions ;

1 ) i perceive you have strong reservations about using VOLUME indicators in generating signals in FOREX based on some comments in the past, however do think the signals of CHAIKIN MONEY FLOW are valid for forex ?

2 ) i am considering using the C M F indicator in post 53 as an additional filter, however i would like to know if your observation about its formula where CLOSE - OPEN is used instead of CLOSE - LOW implies there is an error in the formula of this particular version ?

THANK YOU VERY MUCH FOR YOUR INVALUABLE CONTRIBUTIONS
 

Re ; questions

Hello mladen,

many thanks for your kind response.

 
mrtools:
Hi Tito_xs, Have this one cleaned up the code a bit.

Hi to all,

mladen and/or mr.tools

Is it possible to have a smoothed version of the Twigg MF or something similar done to the atr_normalized momentum to avoid some false jump and drop around the zero line. IMHO this versions could be interesting (if can be done)

thanks again for the help

cheers tito,

twiggs_money_flow_org.mq4

 
tito_xs:
Hi to all,

mladen and/or mr.tools

Is it possible to have a smoothed version of the Twigg MF or something similar done to the atr_normalized momentum to avoid some false jump and drop around the zero line. IMHO this versions could be interesting (if can be done)

thanks again for the help

cheers tito,

twiggs_money_flow_org.mq4

tito

Try out this version

It is using super smoother for smoothing. To turn the smoothing of set the Smooth parameter to <= 1

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