What is Marc Chaikin's indicator?

Asked by: Wilma Reynolds  |  Last update: August 7, 2026
Score: 4.2/5 (25 votes)

Marc Chaikin is best known for developing the Chaikin Money Flow (CMF) indicator, a technical tool that measures buying and selling pressure over a specific period (usually 21 days) by combining price action and volume. It acts as an oscillator to determine if an asset is being accumulated (bought) or distributed (sold), aiding in identifying trend strength and potential reversals.

What is the Marc Chaikin indicator?

Description. Chaikin Money Flow (CMF) developed by Marc Chaikin is a volume-weighted average of accumulation and distribution over a specified period. The standard CMF period is 21 days. The principle behind the Chaikin Money Flow is the nearer the closing price is to the high, the more accumulation has taken place.

What is Chaikin's latest prediction?

Marc Chaikin's track record speaks for itself: He warned of the 2022 downturn 90 days before it happened, predicted the 2023 recovery with 26% gains, and called this year's tariff crash. Now his market data points to a 65% chance of a bear market in 2026 with average losses of 20%.

What is the Chaikin formula?

The Chaikin Oscillator function is based on an indicator developed by Marc Chaikin. It is calculated by subtracting the 10-day exponential moving average from the 3-day exponential moving average of the Accumulation Distribution line. Resulting values oscillate around the zero level.

Is Marc Chaikin reputable?

Is Marc Chaikin Legit? Yes, Marc Chaikin in legit. He is a seasoned financial analyst with over 40 years of experience, having worked a stockbroker and trader before transitioning into stock market tools and technical indicators.

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How to use the Chaikin money flow indicator?

Calculating Chaikin Money Flow

  1. Money Flow Multiplier = ((Close Value – Low Value) – (High Value – Close Value)) / (High Value – Low Value)
  2. Money Flow Volume = Money Flow Multiplier x Volume for the Period.
  3. CMF = 21-day Average of the Daily Money Flow / 21-day Average of the Volume.

What's the most reliable indicator?

Best trading indicators

  • Stochastic oscillator.
  • Moving average convergence divergence (MACD)
  • Bollinger bands.
  • Relative strength index (RSI)
  • Fibonacci retracement.
  • Ichimoku cloud.
  • Standard deviation.
  • Average directional index.

What did Mark Chaikin predict for 2026?

Wall Street veteran Marc Chaikin warns of a “65% chance of a bear market in 2026” with average losses of 20%, explicitly positioning himself as the contrarian who sees a downturn “nobody else” is calling.

What is the most powerful indicator?

The relative strength index (RSI) is one of the most commonly used indicators. The RSI is a momentum indicator that compares the speed and strength with which the price of an asset rose or fell. By ascertaining the momentum, the indicator can help one understand whether a security is overbought or oversold.

What is the 3-5-7 rule in stocks?

The 3-5-7 rule in stock trading is a risk management strategy: risk no more than 3% of capital on a single trade, keep total open position risk under 5%, and aim for a minimum 7% profit target or 7:1 reward-to-risk ratio, ensuring capital preservation and disciplined growth by setting clear limits and avoiding emotional decisions. 

Is the chaikin power gauge free?

The Chaikin Power Gauge system lets you pick up on Wall Street signals you can't see on a chart. Enter your email to sign up for our PowerFeed newsletter and gain insights from the system, free of charge.

What is the one indicator that works for every trader?

1. Simple Moving Average (SMA) A simple moving average is a trading indicator that takes the average of multiple price points over time to create a single trend line. This trend line can show whether the value of an asset is increasing (bullish) or decreasing (bearish).

What is the 90% rule in trading?

The "90-90-90 rule" in trading is a harsh reality check stating that 90% of new traders lose 90% of their money within the first 90 days, highlighting the high failure rate due to emotional decisions, poor risk management, and lack of education/strategy. It serves as a cautionary tale, emphasizing that success requires discipline, a solid trading plan, continuous learning, and strict risk control (like risking only 1-2% per trade) to avoid the common pitfalls that wipe out most beginners. 

How long will $500,000 last using the 4% rule?

Your $500,000 can give you about $20,000 each year using the 4% rule, and it could last over 30 years. The Bureau of Labor Statistics shows retirees spend around $54,000 yearly. Smart investments can make your savings last longer.

Is Chaikin money flow a good indicator?

The bottom line. Chaikin money flow is a versatile technical indicator that's useful for identifying trends, confirming their strength, and analyzing market sentiment. CMF's effectiveness depends on market conditions, and it should be used in conjunction with other technical analysis tools.

How to use Chaikin?

Calculating the Chaikin Oscillator

First, calculate the Money Flow Multiplier. Second, multiply this value by volume to find Money Flow Volume. Third, create a running total of Money Flow Volume to form the ADL. Finally, take the difference between two moving averages to calculate the Chaikin Oscillator.

What is the 5 candle rule?

The "5 candle rule" in trading refers to strategies using five consecutive candlesticks to confirm a trend or signal, often involving waiting for a specific pattern (like a long candle, three smaller ones, and a confirming reversal candle) or using the first five-minute candle of the day to set entry/exit points, aiming to filter out noise and find reliable setups for entry and stop-loss placement, often with a fixed risk/reward ratio like 2:1.