Peach, may I?: CMF=a modern "renaming" of the highly acclaimed and mostly ignored Chaikin's CCI index, sometimes shortened to CMF for Chaikin's money flow. If you wish to research it, you might need to use it's full name: Chaikins Commodity Channel Index. You are more likely to find discussions of it in commodity trading journals and trade rags for that industry.
Chaikin designed it as a primo tool for use in commodity futures trading. Since that is a pretty much reviled industry (an opinion not shared by moi), it has languished mostly in dusty futures brokerage industry tech trading journals.
CCI has been found to work on individual equities as well, and quite frankly, on indices too, in this case the XAU (which is my favorite, but it believe you like HUI, yes?).
So, keep in mind if consulting/using CCI as a TA tool, one needs to plug in the normal cyclicality of the underlying commodity (in this case gold) short term time frames, as in days and weeks---and yes they do vary from commodity to commodity due to varying seasonality considerations of said commodity, and not just rely upon arbitrary "standard default setting CCI settings" offered in the various chart programs.
Furthermore, one needs to keep in mind the cyclicality of the specific stocks' equity cycles, aka: earnings, fiscal or calendar year reporting periods, pre-announcement season etc; always skewed of course, by the drilling season report of results, etc.
Frankly, most freebie chart services offered on the net leave CCI out of the pull-down menu user options. Whether or not CCI is listed in the "choices" is one of my filters as to whether or not to spend any time on any freebie chart site.
So, I would suggest if wanting to learn to use CCI as a TA/trading/timing tool, one should overlay 3 charts:
the base commodity CCI
the equity charts
and pertinent indices (such as mentioned above)
atop each other in order to spot divergences and short term trade accordingly.
CCI is one of the cornerstones of my "holy grail" trading metrics.
Good Luck, Norma
g_t |
