Chaikins Money Flow XAUUSD Technical Analysis & Money Flow XAUUSD Signals
Developed by Marc Chaikin
This an oscillator which measure the Accumulation/distribution of money that is flowing into and out of a xauusd.
The indicator is based on the fact that the nearer the closing gold trading price is to the high of the gold trading price, the more the accumulation of the xauusd.
Also the nearer the closing gold trading price is to the low of the gold trading price, the more the distribution of the xauusd.
Chaikins Money Flow will be positive if gold trading price consistently closes above the bar's midpoint with increasing volume.
However, if gold trading price consistently closes below the bar's midpoint with increasing volume the indicator will be negative.
XAUUSD Technical Analysis & Generating Gold Signals
Buy XAUUSD Signal
A crossover of above zero signifies accumulation of a xauusd. A value of above +10 is a buy/bullish trading signal. Values above +20 signify a strong upward trending market.
Buy Gold Signal
Sell XAUUSD Signal
A Zero line cross of below zero signifies distribution of a xauusd. A value of below -10 is a short/sell signal. Values below -20 signify a strong downward trending market.
Sell Gold Signal
XAUUSD Trend Line break with Chaikin’s money Flow
The money flow can be used to confirm xauusd trend line breaks out or support/resistance level breaks out.
If gold trading price breaks an upward xauusd trend line, XAUUSD traders should then wait for a confirmation signal from the indicator values of below -10.
XAUUSD Trend-Line Break
If gold trading price breaks an downward xauusd trend line, XAUUSD traders should then wait for a confirmation signal from indicator values of above +10.
XAUUSD Trendline Break
Divergence Gold
A divergence between this indicator & gold price often signals a pending reversal in market direction. However as with all divergences its best to wait for confirmation signals before trading the divergence.
A bullish divergence signal occurs when price makes a lower low while the Chaikins Money Flow makes a higher low.
A bearish divergence signal occurs when price makes a higher high while the Chaikins Money Flow makes a lower high.
