OBV or CMF?

[Nana Trader]

Can some one explain if cash flow index is usefull
volume anaysis and what it does and how it sould
be used?

I am not using it at all, because i found no benifit,
but like to hear if there is a way to using it.

Is it silmilar to RSI where indicatore ralates prices
only, but MFI compares both price and volume togather?

 

[rtstrading]

Quote from rtstrading:




Attached is a good example of a CMF trendline break, which is an alert to a change in market direction. The CMF is shown at the top of the graphic in "green". Note the trendline break in the CMF while the trendline in the QQQ has not yet made a noticeable break. This initial break in the CMF is often followed by a reversal in direction, crossing its zero line and then breaking down thru the zero line once again...this is the "sell signal". Price will rebound also during this CMF bounce but must not go to a new high.

Notice the CMF triangle at the conclusion of the price trend. CMF failing to make new highs with price.

What does this say for the Q's? We are likely getting close to a reversal point in this intermediate term direction...from up to down. The CMF is telling us more price action with closes nearer the lows than highs is occurring....distribution.

This type of analysis works in any market and time frame. I have found a 10 period CMF works best.


Bob

Its time to follow-up on the CMF indicator.

As I said above:
"This initial break in the CMF is often followed by a reversal in direction, crossing its zero line and then breaking down thru the zero line once again...this is the "sell signal"

Today, we can see that the CMF has made the crossing that was expected... this is the sell signal for QQQ. Stop is the price high.

I have seen it work in many markets and time frames...worth watching on the Q's as this market has been pushed to lofty levels over the past six months.

Bob