- accumulation. Stochastic indicator compares closing price to the price range (High minus Low) for the window period. Contact us, about us, guest blogging, terms of Service. For example, if price has recently broken an uptrend line, to confirm it CMF will cross below its zero line after some time, showing that the market is ready to Sell. Williams Accumulation Distribution, high/Low compared to, moving Average. Vertical Horizontal Filter, how Good Is Your Market Analysis? And vise verse: if the price consistently closes in the lower half of its daily range with increased volume, then the CMF indicator will be reading below zero - negative CMF, which indicates that the market is weak. CMF indicator offers good confirmation signals of breakouts for various support/resistance levels, in particular, trend lines. And yes, these are still the best charts that you enjoy! Download: CMF_4, download: CMF_T3_4 (You need both CMF_v1 and CMF_T3_v1 for CMF_T3_v1 to load properly.). Join our free Trading Diary mailing list with over 140,000 subscribers.
(Note, the zones has been colored for the illustration purposes only. We develop high-precision algorithms. For example, CMF readings above.10 would be significant enough to guarantee a bullish signal. Experience in trading currency more than 10 years. This is shown in more detail. Therefore, if price consistently closes in the upper half of its daily range with increased volume, then the CMF indicator will be reading above zero - positive CMF, which suggests that the market is strong. We don't have such colored indicator so far; CMF_T3 version is able to show indicator as histogram, which can be switched in the settings). Another way to examine the indicator is to look at the intensity of the Chaikin Money Flow readings.