On Balance Volume (OBV)

Accumulation Distribution Line

As with cumulative indicators, its a running total of each periods’ Money Flow Volume.

• First, a multiplier is calculated based on the relationship of the close to the high-low range.
• Second, the Money Flow Multiplier is multiplied by the periods volume to come up with a Money Flow Volume.

A running total of the Money Flow Volume forms the Acumulation Distribution Line. Chartists can use this indicator to affirm a security’s underlying trend or anticipate reversals when the indicator diverges from the securities price.

Fluctutes between +1 and -1

1. Money Flow Multiplier = [(Close  -  Low) - (High - Close)] /(High - Low) 

2. Money Flow Volume = Money Flow Multiplier x Volume for the Period

3. ADL = Previous ADL + Current Period's Money Flow Volume

Chaikin Money Flow (Volume)

An oscillator that measure the amount of Money Flow Volume over a specific period, typically 20 periods. Fluctuates between 1 and -1. Rarely, if ever will the indicator reach these extremes. A move into the positive territory indicates buying pressure, and vice versa. Positive CMF would confirm an uptrend, but a negative CMF would call into question the strength of the trend.

As a money flow oscillator, CMF can be used in conjunction with pure price oscillators, such as MACD or RSI.

How to Calculate:

1. Money Flow Multiplier: [(Close - Low) - (High - Close)] /(High - Low)
2. Money Flow Volume: Money Flow Multiplier x Volume for the Period
3. 20-Period CMF: 20-period Sum of Money Flow Volume / 20 period Sum of Volume

• Buy Score Addition: Above 0.1
• Sell Score Addition: Below -0.1

Volume Weighted Average Price (VWAP) (Volume)

The average price weighted by volume. VWAP equals the dollar value of all trading periods divided by the total trading volume for the current day. It is often used by traders and institutional investors to assess the average price paid for a security over a specific period, usually intraday.