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Chaikins Money Flow XAUUSD Technical Analysis and 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 price is to the high of the gold price, the more the accumulation of the xauusd.


Also the nearer the closing gold price is to the low of the gold price, the more the distribution of the xauusd.

Chaikins Money Flow XAUUSD Indicator


Chaikins Money Flow will be positive if gold price consistently closes above the bar's midpoint with increasing volume.


However, if gold price consistently closes below the bar's midpoint with increasing volume the indicator will be negative.



XAUUSD Technical Analysis and Generating XAUUSD Signals


Buy XAUUSD Signal

A crossover of above zero signifies accumulation of a xauusd. A value of above +10 is a buy/bullish signal. Values above +20 signify a strong upward trending market.

Buy XAUUSD Signal Chaikins Money Flow indicator

Buy XAUUSD 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 xauusd signal. Values below -20 signify a strong downward trending market.

Sell XAUUSD Signal

Sell XAUUSD Signal


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XAUUSD Trend Line break with Chaikin’s money Flow



The money flow can be used to confirm xauusd trend line breaks or support/resistance level breaks.


If gold 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 sell xauusd signal

XAUUSD Trend Line Break


If gold price breaks an downward xauusd trend line, XAUUSD traders should then wait for a confirmation signal from indicator values of above +10.

xauusd trend line break buy xauusd signal

XAUUSD Trend Line Break



Divergence XAUUSD

A divergence between this indicator and 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 gold price makes a lower low while the Chaikins Money Flow makes a higher low.


A bearish divergence signal occurs when gold price makes a higher high while the Chaikins Money Flow makes a lower high.

 

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