Stockbroker-turned-analyst behind Chaikin Money Flow
Marc Chaikin
Marc Chaikin is an American stockbroker turned technical analyst who started in the brokerage business in the mid-1960s, ran the options department at Tucker Anthony & R. L. Day, and founded Bomar Securities, which he sold to Instinet in 1992. He developed the Accumulation/Distribution Line (originally the Cumulative Money Flow Line), the Chaikin Oscillator and Chaikin Money Flow, and later founded Chaikin Analytics.
What they argue
- The closer a close is to the day's high, the more accumulation has taken place; the closer to the low, the more distribution.
- Tracking money flow - volume weighted by where price closes - is essential to sound stock decisions.
- He advises against trying to time the broad market in the short term, preferring volume-based accumulation/distribution analysis.
Sources
Summaries are Be The Puck's paraphrase of public material. Be The Puck has no affiliation with the people listed.
Chaikin money flow
Rule and full recordVolume & money flow · daily
Weighs each day's volume by where the close lands in the day's range. Positive means buying pressure.
Best risk-adjusted results against buy and hold:
Chaikin Oscillator zero-line switch (3- and 10-day EMAs of the A/D line)
Rule and full recordVolume & money flow · daily
Measures the momentum of Chaikin's Accumulation/Distribution line. Hold while it is above zero, when buying pressure has the upper hand.
Best risk-adjusted results against buy and hold: