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Saturday, 12/16/2017 10:12:39 PM

Saturday, December 16, 2017 10:12:39 PM

Post# of 2804248
Compensated Awareness Post View Disclaimer
Chaikin Money Flow sometimes only briefly crosses the zero line with a move that turns the indicator barely positive or negative. There is no follow through and this zero line cross ends up becoming a whipsaw (bad signal). Chartists can filter these signals with buffers by setting the bullish threshold a little above zero ( .05) and the bearish threshold a little below zero (-.05). These thresholds will not entirely eliminate bad signals, but can help reduce whipsaws and filter out weaker signals.

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