Chaikin Money Flow (CMF) is a volume-weighted momentum indicator developed by Marc Chaikin that measures the amount of money flow volume over a specified period — typically 20 or 21 days. It combines price action and volume to assess whether a security is being accumulated (bought) or distributed (sold) by institutional players. CMF is calculated by first determining the Money Flow Multiplier for each period (based on where the close falls within the high-low range), multiplying it by the period's volume to get the Money Flow Volume, and then dividing the sum of Money Flow Volumes by the sum of total volumes over the lookback period. A CMF above zero indicates net accumulation — buying pressure exceeds selling — while a CMF below zero indicates distribution. Sustained CMF above +0.25 signals strong institutional buying, while below -0.25 indicates heavy distribution. In Indian equity markets, CMF is used to confirm price breakouts — a price breakout above resistance accompanied by positive and rising CMF is significantly more reliable than a breakout on declining or negative CMF, which may indicate a false breakout driven by low-conviction retail buying.
For android only
