PAL Chaikin Money Flow BullishTrading today has been bearish for the stock as people take profits near resistance. However, the Chaikin Money Flow (CMF) is above zero which says the bullish trend is still in effect.
The CMF operates regardless of how bullish or bearish market participants may opine to be one day or the next. As seen on the chart the trend remains upwards as the CMF is above zero.
Thus when the CMF is bullish above zero, and the chart shows red days, peaks, drops, or consolidations these are possible buying opportunities.
It really is not much different than going to the store and shopping with coupons.
Read more about this indicator and its uses at
www.tradingview.com
Note that this indicator should not be used as a stand-alone buy or sell decider. It can be out of sync at times but it is helpful in confirming chart trends if it has worked in the past, just like any indicator or system one might use. If it seems out of sync then perhaps people are drawing trendlines on the indicator to see where it breaks through instead of seeing when it crosses the zero line.
