Category: Advanced Indicator Set 2
Input parameters
Name
|
Setting
|
Default
|
High
|
High time series
|
High
|
Low
|
Low time series
|
Low
|
Close
|
Close time series
|
Close
|
Volume
|
Volume Time Series
|
Volume
|
Accumulation period
|
Integer >= 1
|
21
|
Persistency period
|
Integer >= 1
|
120
|
Calculations
Chaikin Money Flow Persistency = Percent of bars in the Persistency period window where Chaikin Money Flow over Accumulation period bars is positive
Discussion
The Chaikin Money Flow Persistency indicator (CMFP) is an extension of the Chaikin Money Flow indicator. The CMFP ranges from zero to 100 and reflects how long Chaikin Volume Accumulation Percent stays positive. The higher the CMFP, the longer the Chaikin Volume Accumulation Percent remains above zero and the more evident that the market is under prolonged accumulation. Marc Chaikin sets CMFP=80% as a threshold indication that the market is under strong and sustained accumulation. This creates possible buying opportunities.
The default values Accumulation period=21 and Persistency period=120 are good for daily data.
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