To: Jenna who wrote (6297 ) 3/20/1998 11:06:00 PM From: Jenna Read Replies (3) | Respond to
INTERPRETATION: Chaikin Money Flow, Moving average 10 day, Volume 1/30 day average volume ratio...1)Chaikin Money Flow is simply the measure of money 'flowing' into a stock or out of a stock. I don't think I need to get into the calculations of how to compute the Money Flow but I will say that very high values show that money is moving INTO a stock and low values indicate money is moving OUT of a stock. In our example of SDP, the ChMF is 89.7 very high (99 means only 1% of stocks in the entire 9,000 database has a higher value for chaikin Money flow) This indicator is usually used with a volume indicator for a better picture.2. relative performance simply how much the stock was up the day you ran the scan anything over 100 is a positive gain.3)vol 1/30 day average volume ratio: I use 24 criteria (some others I like is institutional buying - high, insider buying high, etc..) but I will just say that the 1/30 volume ratio is simply a very important one. I like to choose a stock that is 150% more than the 30 day average volume </b) So now you have a combination of money flowing into a stock (Chaikin Money Flow) + volume extremely high (150% more than 30 day average) you have a better picture of demand for this stock in the marketplace. You don't want money flowing into a stock and dead volume. You don't want a divergence like that. That would mean interest in the stock is starting to wane. You want HIGH VOLUME indicating interest is moving INTO the stock at a high rate. 4) 10 Day Moving Average
