DarioHealth Corp (DRIO)

[jimmenknee]

Yes-- that is an excellent article Posiden Well worth reading. The exact point with OTC stocks is you separate the "Volume" categorized indicators into 2 groups-- flow volume/direction (ChiOsc and PVO) and trading/investing group supporting (CMF and MFI). They are only 4 indicators by the way lol

CMF, by virtue of how it is calculated (based on price position relative to overall candle), represents retail buying/sentiment— when the overall trend is down you can interpret it as Retail Buyers beginning to lose faith in the movement.

ChiOsc (the MACD of the A/D line) and MFI (money flow at the averages) represent "sophisticated" Sellers' affect on “normal” trading. When they are providing more supply than the demand can handle (reflected in MFI), money momentum is degraded/stopped (reflected in ChiOsc). ChiOsc will tell you when the run is losing momentum and MFI will tell you when the demand fades but the sellers remain. When the ChiOsc collapses along with a down trending MFI against flat or uptrending CMF (non-collinear action-- actually divergence), it can be interpreted as retailers trying to "catch a falling knife."

Given that, for momentum generated runs, the emphasis is placed on the average price to qualify/quantify supply/demand battles. Both CMF and MFI are tracked in multiple periods-- 3 periods for short-term trying to quantify the daytrader, flipper and heavy sellers and 21 periods to trend based on a typical month.

RSI has its place in momentum watching and is a very good indicator for Big Board stocks, but with all due respect I wouldn't watch for a break of the 35 level; rather I'd watch/wait for the 3-cycle CMF and MFI to drop and see what affect it has on the ChiOsc as well as what volume it brings relected in the PVO.

(FTR, I add ADX to a combined 7-cycle money flow cluster to help assess strength given ADX is ambivalent to direction.)