Chaikin Indicator

Chaikin Indicator
October 09 09:03 2017 Print This Article

Traders constantly resort to the help of various auxiliary tools for trading on the stock exchange. This significantly saves their time and gives them a chance to earn more, and to trade more qualitatively. One of the most important tools in this area are all sorts of indicators.

One of the most popular is the Chaikin indicator for trading binary options. This is a unique way to make a profit on the principle of distribution / accumulation. Its creator – is none other than Marc Chaikin, a well-known trader in the world of stock trading. Actually, it was the creation of the indicator that made it so. Chaikin Money Flow can used in option trading as a stand-alone trend tool or as an auxiliary tool, to obtain more accurate analysis results. The principle of its operation is very similar to the MACD indicator, the difference is precisely the way of distribution.

Image result for Chaikin Indicator

Basics of work

We will not hide how important the trader is to information about changes in the market and its trends in general. Learn about all this help the trader indicators. Chaikin’s indicator refers to such an indispensable tool. In essence, his work, for an unprepared person, can be difficult to understand his work, but the time to study it is worth it. Having thoroughly figured out, you will get the opportunity to increase your chances of success several times.

As already mentioned at the outset, the work Chaikin indicator based on the principle of distribution / accumulation of lines that show the strength of the trend. To calculate the indicator, only a few values of these lines are sufficient. Further calculations do not carry any complexity. Next, the volume of trades will divide the sum of the values you determined over the same period of time. The standard period for such calculations usually considered to 21 days. The trader has the right to determine the calculation periods independently. It all depends on the strategy that he enjoys and his personal beliefs. In addition, the periods can shifted in time, but to stabilize them, simply remove the previous few days and add subsequent ones. This way of working the indicator creates a constant cash flow and repeats it again.

Application in trade

The simplest way to make the Chaikin indicator work for you is simply to follow the fluctuations in values ​​near the zero line. The principle of such a trade is fairly simple, if the curve above the zero line traders buy Call and in turn, if the curve below, the bet is placed on the direction of Put. It is worth adding that this way of using the indicator is the easiest and is in the rating of advantages in the first place. Of course, your success depends on the situation on the market, time and other indicators that may require additional participation of the trader, but the result is worth it.

To use this indicator in the trade can be absolutely every trader, for this it is enough just to understand his work. It can be downloaded on the network in free access and quietly receive your money from successful transactions when trading binary options.


view more articles

About Article Author