Chaikin Money Flow
CMF calculates the accumulation and distribution of money in a market. It combines price action and volume to confirm trends.
Dynamic Chart Demo
* This chart uses synthetic data to demonstrate the indicator's behavior in typical market conditions.
Core Usage
Advantages
- Integrates volume effectively
- Good for trend confirmation
- Divergence between price and money flow is easy to read
Limitations
- Can lag price action
- Noisy in low volume
- Sensitive to gaps
Calculation Logic
Understanding the mathematical logic behind indicators helps you interpret signals more accurately and avoid misuse in unsuitable market environments.
Common Trading Strategies
CMF Zero-Line Breakout
Using the CMF cross above 0 as a confirmation for a bullish price breakout.
CMF Divergence
Watch for price making a new high while CMF makes a lower high. That divergence says the rally is running on less volume support than before, and is often an early warning rather than a sell signal on its own.
Best For
"Confirming price moves with volume."
Note: Technical indicators are mathematical calculations based on historical price and volume. They should be used as part of a comprehensive trading system, not as a standalone entry signal.