Money Flow

Money Flow

Money flow indicators measure buying and selling pressure of a security by analyzing both price and volume. They can help to confirm an ongoing trend and to anticipate future changes and therefore trading opportunities. The use of volume data is an advantage compared to price-only indicators, but money flow indicators should not necessarily be used as stand-alone signal generating tools. There are several money flow indicators such as Chaikin Money Flow, Money Flow Index and several popular variations developed by the community.