Tuesday, August 08, 2006 5:19:08 PM
The CMF is not valid for a pennystock like SMMW.
The way it is derived is as follows:
Developed by Marc Chaikin, the Chaikin Money Flow oscillator is calculated from the daily readings of the Accumulation/Distribution Line. The basic premise behind the Accumulation Distribution Line is that the degree of buying or selling pressure can be determined by the location of the close relative to the high and low for the corresponding period (Closing Location Value). There is buying pressure when a stock closes in the upper half of a period's range and there is selling pressure when a stock closes in the lower half of the period's trading range. The Closing Location Value multiplied by volume forms the Accumulation/Distribution Value for each period.
As you can see, the CMF is going to go up as long as the close of SMMW is at 0,0002 (provided the high of the day is 0,0002 or 0,0003 of course). So each day someone buys 1000 shares at 0,0002 at the close you will see the CMF going up. It has got nothing to do with buying pressure in this case. All the trades can be sells at 0,0001 but a close of 0,0002 for only 1 share will show the CMF going up.
Please correct me when I'm wrong.
I've still got 500 mln shares so i want this to go up like the rest of you, but to see you post the CMF day in and day out while this has no merit is getting on my nerves lol.
Let's get her done already Dan... release the killer pr's please.
Take Care
Take Care
Remember: predictions made in the past are no guarantee for predictions made now or in the future. This post has some unpredictable forward statements in it and must be treated as such according to SEC rules ;-)
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