Steemit Crypto Academy | Summary On Homework Task Week6-Season4

At the end of the sixth week of the Season 4 assignment on October 16, 2021, I want to thank the 64 students who participated this week by submitting their essays to answer the assignment.

This week we have presented the most important and best trading methods with the Chaikin Money Flow Indicator (CMF) in a detailed explanation which you can use and integrate into your trading strategy.

Intended for active traders and novices in crypto, this section reviews the different technical indicators applied to the methodology or technique that is also called AT for technical analysis.

Graphical analysis consists of the study of stock market price charts in order to anticipate the evolution of the markets. The foundation of technical analysis is forecasting trends and signs of trend reversals. It is a question of identifying figures and / or signals given by mathematical tools whose probability of success is proven.

In this course, you will find all the information to learn how to invest in the crypto markets under good conditions. It strives to ensure the accuracy and updating of the information provided in this sheet, and reserves the right to correct the content at any time.

We always affirm that the main goal of our Steemit Crypto Academy community is to ensure knowledge and promote quality, fair and inclusive learning opportunities in the field of cryptocurrency for all.

Then I asked the students some questions to gauge how well they understood the topic and to assess the cognitive gains they had made from reading the lesson.

1. In your own words, give a simplified explanation of the CMF indicator with an example of how to calculate its value?

2. Demonstrate how to add the indicator to the chart on a platform other than the tradingview, highlighting how to modify the settings of the period(best setting).(screenshot required)

3. What is the indicator’s role in confirming the direction of trend and determining entry and exit points (buy/sell)؟(screenshot required)

4. Trade with a crossover signal between the CMF and wider lines such as +/- 0.1 or +/- 0.15 or it can also be +/- 0.2, identify the most important signals that can be extracted using several examples. (screenshot required)

5. How to trade with divergence between the CMF and the price line? Does this trading strategy produce false signals?(screenshot required)

6. Conclusion:

In your own words, give a simplified explanation of the CMF indicator with an example of how to calculate its value?

The Chaikin Money flow is a trend strength indicator that is based on prices and volumes.

A positive value is meant to indicate an uptrend over the specified time period while a negative value is interpreted as a downtrend.

The Chaikin Money flow is a good indicator that gives the technical analyst another take on Chaikin's theories on buying and selling pressures.

It should not necessarily be used as the sole indicator to identify signals.

This is because the Chaikin Money flow works well when paired with other indicators, especially those that have also been developed by Chaikin, Accumulation / Distribution and the Chaikin Oscillator or Chaikin Oscillator.

To calculate the Chaikin we proceed for 4 phases, the first of which are evidently exactly those that are used for the calculation of the A / D. We specify that usually the time reference used is 21 previous periods (according to the classic formula):

1. The Money Flow Multiplier is calculated for each period [(Closing - Minimum) - (Maximum - Closing)] / (Maximum - Minimum)
2. The Money Flow Volume is calculated by multiplying the volume of each period by the Money Flow Multiplier
3. The Money Flow Volume of each period is added on one side and the volumes of each period on the other.
4. Finally , the Sum of the Money Flow Volume is divided by the Sum of the total volume of the periods.

Demonstrate how to add the indicator to the chart on a platform other than the tradingview, highlighting how to modify the settings of the period(best setting).

Chaikins suggests 21 days as the default setting. That corresponds approximately to a trading month. If the number of periods is larger, the indicator is less volatile and less prone to sideways movements. In a weekly or monthly chart, the number of periods should be reduced.

What is the indicator’s role in confirming the direction of trend and determining entry and exit points (buy/sell)

As we said at the beginning, this oscillator measures the amount of pressure that buyers or sellers are exerting. These pressures (both to buy and to sell) are then even more intense when associated with high trading volumes. With this in mind, let's see the two ways in which it can come in handy in our operations.

Crosses above / below the zero line

According to this approach, a positive value of the Chaikin Money Flow (therefore above zero) confirms the existence of an upward trend, while the negative one calls it into question . The same (on the contrary) is also true if we find ourselves in a downtrend. As we said earlier, this signal is even stronger when associated with high volumes.

Using it like this, however, is too simplistic, and exposes us to the risk of many false signals. For this reason, the bullish threshold can be set a little higher than zero (+0.05) and the bearish threshold a little lower (-0.05). These thresholds will not completely eliminate false signals, but they can help reduce their impact.

How to trade with divergence between the CMF and the price line? Does this trading strategy produce false signals?

This is actually the most effective way to use the CMF. Like most oscillators, the Chaikin Money Flow can also give us very useful indications through divergences . If the dynamics of prices shows two peaks in a certain direction (ascending or descending) while the CMF chart shows two that go in the opposite direction (therefore descending or ascending) then it is possible that the current price trend is weakening and there may be an imminent reversal.

The results during this week saw an increase of 1% in works with excellent content compared to the previous week to reach 34% of the total writings, in contrast, the percentage of articles with good content decreased to 35% with a decrease of 1% and the percentage of articles with medium content also decreased by 7% to 26%.

The total homework whose producers got rewards for a positive vote was 100% versus only 0% who couldn't score above average, and if that's anything to be said, it's how seriously the students get what they're being asked and how careful they are that they. Learn and do their best to get the highest ratings.

We are also seeing a strong resurgence of plagiarism-affected articles, and it remains our great hope that students will continue to abide by our Academy's rules so that we don't have to mute their activism within our community.

Indiscipline has also been noted in other practices that our community considers to violate business ethics within the group, which is the use of multiple accounts for the purpose of maximizing individual profit without looking to improve the level of article content.

We also mention that there are conditions to participate in responding to the homework that I submitted and the required reputation is 65 and 600 Syrian pounds, so I invite all participants to respect these conditions so that the preparation effort is not wasted without obtaining an evaluation and a reward.

We would like to first thank all the participants for their challenges and inspiring achievements, and we hope that the spirit of this competition will continue for as long as possible, and we hope that the culture of challenge and facing obstacles will spread in all communities.

We are pleased to announce the names of the three winners of the 6th week of the 4th season competition :

Students	Posts links
@aneukpineung78	https://steemit.com/hive-108451/@aneukpineung78/crypto-trading-with-chaikin-money-flow-indicator-crypto-academy-s4w6-homework-post-for-kouba01
@virajherath	https://steemit.com/hive-108451/@virajherath/crypto-trading-with-chaikin-money-flow-indicator-crypto-academy-or-s4w5-homework-post-for-kuoba
@prosperamente	https://steemit.com/hive-108451/@prosperamente/criptotrading-con-el-indicador-chaikin-money-flow-crypto-academy-s4w6-homework-post-for-kouba01

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