Chapter 11: Money flow
In this chapter I’ll discuss several charting indicators that combine price and volume in a different way to the other indicators I’ve discussed in previous chapters. The money flow indicators I’ll discuss are: the money flow index, Chaikin money flow and Twiggs money flow. These indicators are similar in some ways to the momentum indicator, relative strength index (RSI) and on balance volume (OBV), except that they combine price changes and volume changes into one indicator.
Before I discuss them I’ll first briefly recap momentum, RSI and OBV:
⇒ Momentum indicator. The momentum indicator attempts to indicate overbought/oversold levels (overshoot and undershoot) by calculating the difference between today’s closing ...
Get Charting Made Simple: A Beginner's Guide to Technical Analysis now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
