What Is The Chaikin Money Flow Indicator & How To Trade With It

Chaikin Money Flow

Marc Chaikin developed Chaikin Money Flow or CMF. It measures the volume-weighted average of accumulation and distribution over a certain period. What is the Chaikin Money Flow? The main idea behind the CMF is that the closer the closing price is to the high, the more accumulation occurs. On the other hand, the closer the closing price is to the low, the more distribution occurs. If the price action consistently closes above the candlestick or bar’s midpoint, the CMF is positive. Whereas, if the price closes below the midpoint, the CMF is negative. The formula for the Chaikin Money Flow …READ MORE