Add Money Flow Indicators to Your Toolbox

Tracking money flow is a key part of my technical trading plan. I use the Chaikin money flow indicator, which measures accumulation/distribution over a set look-back period, and the money flow index, which is a volume-weighted relative strength measure, and overlay a 21-period average on these indicators to act as a signal line. Then I look for crossovers that occur under their centerlines, but this improving money-flow indication has to have a complimentary price trigger point. A break above a clearly defined resistance level on the daily chart is what initiates the trade. Positive price action and improving money flow generally make a good trading combination. Here are two stocks that meet those requirements. 

Lexington Corporate Properties (LXP) is a real estate investment trust that owns and operates a portfolio of office, retail and industrial properties. The stock recaptured its 2013 highs with a strong move in the first three months of this year, and then it pulled back under its 50- and 200-day moving averages in the second quarter. The consolidation that followed resembled an inverse head-and-shoulders pattern with neckline resistance in the $10.85 area, and a breakout in May took the stock price to the pattern price target projection in June....307 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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