The cash in/cash out report (CICO for short) was built with the intent to quiet the market noise. The blunt way to say it, this indicator quiets the market manipulators voice and helps the retail investor make more money. I believe money is better of in the 99% hands versus the greedy hoarding that is currently going on. There are dozens of companies in the SP500 that have the same tax rate as unborn babies, nada. These hoarders also have machine learning high frequency trading bots that purposely create fear and anxiety in the markets. When all of the major markets move at the exact same time of day on frequent occasions, I see red flags. I recommend looking into Authorized participants in the ETF market to understand how the markets can be manipulated, specifically Creation and Redemption.
Enough of my rant. This indicator is open source. Directions on how to use the indicator can be found within the code. The basic summary is, clear your charts to bare minimums. Make the colors gray on all candles. Then apply this indicator. The indicator will color the "buy" and "sell" signals on the chart. Keep in mind, markets are manipulated to create fear in the retail investors little heart and can change drastically at any second. This indicator will show real time changes in running sum into and out of the market, it is estimated by average prices and not exact.
Once the chart is all greyed out and the indicator is applied you will see an area colored red and green. What this indicator does is takes a running sum of the new money into and out of the market. It takes the average of the high and low price times the volume. If the price is going up the value is positive, going down will be negative. Then the running sum is displayed. The area section is the running sum and the column bars are each value. When a market is steadily increasing in value you will see the large green area grow. When markets shift, values and display will change in color and vector. Full descriptions are available within the script in the comment sections.
I hope this help you make more money. If this helps you grow profits, give it a like!
Much respect Jhonny Nickles, quick question is this script specifically build for stock market or could be used on currencies as well? So far so good with the script very helpful
Johnny_Nickles
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@mrlionfx, you know that is a great question. I have very little knowledge with trading currencies. However, if there is dynamic volume within currency trading I would imagine this indicator would show market up swings and down swings. If you find it helpful with currencies please post details!
mrlionfx
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@Johnny_Nickles, I would be more than happy give it a shot on the currency as that's where I trade most. I will post or even send you any great findings soon. Am confident it would have a positive result on the currency market. Keep in touch soon
@Johnny_Nickles, could you kindly clarify to me the bars and the red/green cloud that is displayed over the CICO Report?
much appreciated
Johnny_Nickles
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@mrlionfx, Yes, each bar signifies the estimated total cash in or cash out of a market. The calculation is taking the average of the high and low price multiplied by the volume of that bar and then painting either a red/green bar in correspondence of direction of movement. Red for selling, green for buying. The red/green clouds represent the sum of those bars based on the input of the user. If the user inputs 20 on the daily chart they are seeing the sum of cash for the previous 20 days. This can be used on hourly, minutely, monthly; the chart will update to whatever the user has input. I prefer using the 20 daily on the SPY for a very quick snapshot of market movement over the previous month.
ChesTV
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Interesting. Have you looked at VSA (Volume Spread Analysis) ? For instance, up bars on high volume after an uptrend can actually signify distribution - big money selling to us punters. The spread of a bar and the amount of volume may tell us how much buying and selling there is within a bar. Have been trying to code this without joy !
MaciejM29
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I really like your approach regarding to the market manipulation bij HFTs. Thank you for this great indicator!
Yobraian
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Much respect Jhonny Nickles, thanks!!!
mrothko1
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Hi Johnny, thanks for the great CICO indicator, like it! I noticed the sum value is high and it makes the price scale area so wide after applying the indicator to the chart. I'm using phone to read the chart and it makes the chart width smaller for reading. Any idea how to fix this? thanks.