Chaikin Change Direction

Chaikin Money Flow (CMF) is a technical analysis indicator used to measure the accumulation or distribution of a security or stock. The Chaikin Oscillator (CHO) is a derivative of CMF, and the Chaikin Change Direction is a signal that uses the CHO to identify potential trend changes in the stock.

The Chaikin Oscillator measures the momentum of the CMF by subtracting a 10-period exponential moving average (EMA) of the CMF from a 3-period EMA of the CMF. Positive values indicate accumulation, while negative values indicate distribution.

The Chaikin Change Direction signal is triggered when the CHO crosses above or below the zero line. A cross above the zero line indicates a potential trend reversal from negative to positive momentum, while a cross below the zero line indicates a potential trend reversal from positive to negative momentum. Traders may use this signal as an entry or exit point for their positions in the stock.

This strategy is based on crossings in Chaikin Oscillator. A buy signal is generated when Chaikin Oscillator changes the direction from a downward to an upward and a sell signal is generated when Chaikin Oscillator is changing the direction from an upward to a downward.

Formula

IF Chaikin(t) goes downward
THEN GO LONG
ELSE
IF Chaikin(t) goes upward
THEN GO SHORT

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GRC TDS HON LNC WSBC CMS CMI HBAN TEL SCI

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