Chaikin Money Flow (CMF)
Chaikin Money Flow (CMF) is a technical indicator used to measure the buying and selling pressure of a stock. Developed by Marc Chaikin, the Chaikin Money Flow indicator is calculated by taking the accumulation/distribution line and dividing it by the volume of the stock. The Chaikin Money Flow indicator is a momentum indicator that oscillates between -1 and 1. A reading of 1 indicates strong buying pressure, while a reading of -1 indicates strong selling pressure. A reading of 0 indicates that the buying and selling pressure is equal.
History of Chaikin Money Flow
Chaikin Money Flow was developed by Marc Chaikin, a Wall Street analyst and trader. Chaikin Money Flow was first introduced in the late 1970s as a way to measure the buying and selling pressure of a stock. Chaikin Money Flow is based on the Accumulation/Distribution Line, which was developed by Joe Granville in the early 1960s. The Accumulation/Distribution Line is a momentum indicator that measures the buying and selling pressure of a stock. By dividing the Accumulation/Distribution Line by the volume of the stock, Chaikin Money Flow was able to measure the buying and selling pressure of a stock more accurately.
Comparison Table
| Indicator | Range | Interpretation |
|---|---|---|
| Chaikin Money Flow | -1 to 1 | 1 = Strong Buying Pressure, -1 = Strong Selling Pressure |
Summary
Chaikin Money Flow is a technical indicator used to measure the buying and selling pressure of a stock. Developed by Marc Chaikin, the Chaikin Money Flow indicator is calculated by taking the accumulation/distribution line and dividing it by the volume of the stock. The Chaikin Money Flow indicator is a momentum indicator that oscillates between -1 and 1. A reading of 1 indicates strong buying pressure, while a reading of -1 indicates strong selling pressure. For more information about Chaikin Money Flow, you can visit websites such as Investopedia, TradingView, and StockCharts.
See Also
- Accumulation/Distribution Line
- Relative Strength Index (RSI)
- Moving Average Convergence Divergence (MACD)
- On Balance Volume (OBV)
- Average Directional Index (ADX)
- Bollinger Bands
- Stochastic Oscillator
- Price Volume Trend (PVT)
- Money Flow Index (MFI)
- Volume Weighted Average Price (VWAP)
