Gary:
<<Chaikin's Money Flow index can be a useful tool, but I doubt you will find its divergences have a 90% predictive accuracy.>>
I'm sure you are right. What I should have said, I have, with about 5 years of experience with using this indicator, (I have AIQ software), discovered a price to moneyflow convergence/divergence situation that has been accurately predictive for me about 90% of the time.
The setup in the charts only arises occasionally. But when it arises, I can recognize it in a flash, and then my antennae are alerted. As I follow the progress, sure enough, the price pop or price drop, if a convergence or divergence respectfully, occurs about 90% of the time.
<<Creating a Stochastic of MF might give definite buy or sell signals whereas MF alone simply tells you if there is accumulation or distribution--it really doesn't tell you when to act.>>
Absoltely correct, there is no timing mechanism in this occurrence that I have detected. The phenomenon, in my experience, has varied in duration, from the time of start of formation of the pattern to, either the pop or drop (~90% occurrence) or dissipation of pattern altogether, from a few weeks to a few months.
<<If I can come up with a workable formula for taking the Stochastic of MF, I'll let you know.>>
sounds good. thx.
regards
Casey |
