Chaikin Money Flow
factor.formula
Calculate the daily Money Flow Multiplier (MFM), also known as the daily money flow intensity coefficient, which reflects the relative position of the closing price within the price range and is weighted according to trading volume.
Calculate the daily Money Flow Volume (MFVOL), which is equal to the daily Money Flow Multiplier (MFM) multiplied by the daily trading volume.
Calculate the Chaikin Money Flow (CMF) indicator for N periods, which is the sum of money flows over N periods divided by the sum of volume over N periods, and multiply by 100 for normalization.
The default N = 20, which means calculating the capital flow for the past 20 periods.
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Closing price of the day
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Lowest price of the day
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Highest price of the day
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Trading volume for the day
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Daily Money Flow Multiplier
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Daily cash flow
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Calculate the cycle length of CMF
factor.explanation
The Chaikin Money Flow indicator (CMF) measures the strength of money inflows and outflows through the relationship between volume and price. The core concept is that when the price closes in the upper half of the day's price range, it indicates that the buyer's power is strong; conversely, when the price closes in the lower half of the day's price range, it indicates that the seller's power is strong. By combining trading volume, CMF can better reflect the real trading behavior and capital flows of market participants. Specifically, a positive CMF value indicates a strong inflow of funds, which may indicate the momentum of price increases; while a negative CMF value indicates a strong outflow of funds, which may indicate the pressure of price declines. This indicator is often used to assist in determining market trends, identifying potential buying or selling opportunities, and verifying the signals of other technical indicators.