126 Chaikin Money Flow (cmf)

It compares the relative position of close to high and low price (i.e., where is the price trending). Multiple that fcator by volume and average it over a given period of time.

When CMF is closer to 1, buying pressure is higher. When CMF is closer to -1, selling pressure is higher.

trend continuation: During a Bullish Trend, continuous Buying Pressure (Chaikin Money Flow values above 0) can indicate that prices will continue to rise.

Figure 13.9: Chaikin Money Flow

trend reversal: When Chaikin Money Flow crosses the Zero Line, this can be an indication that there is an impending trend reversal.

Figure 13.10: Chaikin Money Flow