Chaikin Money Flow

Сhaikin Money Flow (CMF) - is a technical analysis indicator which is used to measure the volume of money flow over a certain period of time. The money flow volume is an indicator used to measure pressure on the purchase and sale of a security over one period. The CMF then sums up the money flow for a user-defined period. You can use any period, but the most popular periods are 20 or 21 days. The value of Chaikin’s money flow is arranged 1 and -1. CMF can be used to further quantify changes in pressure on buying and selling and can help anticipate future changes.

View of indicator on the chart:

Calculation:

The calculation for Chaikin Money Flow (CMF) has three distinct steps, for this example we will use a 21 Period CMF:

1. Find the Money Flow Multiplier
[(Close - Low) - (High - Close)] /(High - Low) = Money Flow Multiplier

2. Calculate Money Flow Volume
Money Flow Multiplier x Volume for the Period = Money Flow Volume

3. Calculate The CMF
Money Flow Volume / Volume = CMF for the Period

To add and configure the indicator, you must open the settings window.

Drawing

Panel - select the location indicator on the chart:

  • New panel
  • Chart


CMFHigh

Visible - turn on and off visibility.

Scale - if this option is enabled, the scale will automatically be calculated based on the minimum and maximum values of the indicator, in order for the indicator to be placed on the graph.

Color - choose color.


CMFLine


Show value - display the value of the indicator on price scale.

Show zero values- display zero values.

Scale - if this option is enabled, the scale will automatically be calculated based on the minimum and maximum values of the indicator, in order for the indicator to be placed on the graph.

Color - choose color.

Visual type - visual adjustment of the indicator on the graph:

  • Line
  • Histogram
  • Hash
  • Block
  • Cross
  • Square
  • Dots
  • Up arrow
  • Down arrow
  • Axis label
  • Hide

Line style - customize the appearance of the line:

  • Dot
  • Solid
  • Dash
  • Dash - dot
  • Dash - dot - dot

Width - adjust the thickness of the indicator line.

For CMFLow settings are same to CMFHigh.


Misc

Period - choose value of period in days.

Show description of indicator - turn on and off description.