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:

Image 9723

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.

Image 9724

Drawing

Panel - select the location indicator on the chart:

  • New panel
  • Chart


CMFHigh

Visible - enable or disable visibility.

Scale - if this option is enabled, the scale will be automatically calculated based on the minimum and maximum values of the indicator so that it could fit on the chart.

Color - choose color.


CMFLine

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

Show zero values- display zero values.

Scale - if this option is enabled, the scale will be automatically calculated based on the minimum and maximum values of the indicator so that it could fit on the chart.

Color - choose color.

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

  • 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.


CMFLow

Visible - enable or disable visibility.

Scale - if this option is enabled, the scale will be automatically calculated based on the minimum and maximum values of the indicator so that it could fit on the chart.

Color - choose color.


Misc

Period - choose the period value in days.

Show description of indicator - enable or disable the description.

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