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TECHNICAL / ACCUMULATION
ChaikinMFP(period , lookback, [, offset])
Full Description


The Chaikin Money Flow Persistency Indicator takes three inputs a period, a lookback window and an optional lag(offset) input.

The recommended inputs are a period of 21 days and a lookback of 120. When configured this way the ChaikinMFP indicator measures the persistency of money flowing into a stock. This indicator calculates the percentage of days in the previous lookback window(120) that the ChaikinAD(21) is > 0 and as such it fluctuates from 0 -100.

- Any reading > 50 indicates positive money flow persistency over the past 6 months
- Readings > 80 indicate very strong accumulation in a stock over a long period of time, while crossed over the 80 level may indicate a stock which is entering a phase of extended upside price movement

Ranking a universe of stocks by the ChaikinMFP is a time tested way to identify stocks which may significantly outperform the market. Combining ChaikinMFP ranks with a 26 week relative strength to market rank and a high analysts earning estimate revision ranking is a powerful strategy, and also short version of Investor?s Business Daily's successful multi-stock rank.

The Chaikin Money Flow Persistency was the basis for IBD's Accumulation/Distribution Rank(A-E) although they use a shorter time frame of 65 days for a lookback