RE: Crypto Trading With Chaikin Money Flow Indicator- Crypto Academy S4/W6 - Homework Post for professor @kouba01
Hello @kwadjobonsu,
Thank you for participating in the 6th Week Crypto Course in its 4th season and for your efforts to complete the suggested tasks, you deserve a Total|9.5/10 rating, according to the following scale:
Originality | Compliance with topic | Consistency of method | Quality of analysis | Clarity of structure & language |
---|---|---|---|---|
My review :
Great content, thanks to which you managed to get an excellent grade, and here are some observations.
Detailed explanation of the indicator and its characteristics.
Your choice of using only two periods was smart, but it did not enable you to obtain a correct final result, as the value of the indicator ranges between +1 and -1.
Either way, the preferred length should be adjusted to the trader’s style of trading. Short-term traders may choose shorter lengths, whereas Long term traders can decide to go in for longer lengths.
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.
Your remaining answers were excellent in terms of explanation and depth of analysis.
Thanks again for your effort, and we look forward to reading your next work.
Sincerely,@kouba01