Chaikin Money Flow: 20-bar money flow volume divided by 20-bar volume, around a zero line.
Overview
Chaikin Money Flow (CMF) shows whether money has been flowing in or out over a window, in its own pane. Above zero means more closes near highs on volume; below zero means more near lows.
The line and fill are green above zero and red below.
How it works
Money flow volume = ((close - low) - (high - close)) / (high - low) x volume. CMF = sum of money flow volume over 20 bars / sum of volume over 20 bars.
Values range from -1 to +1. Bars that close near their high add most of their volume; bars that close near the low subtract it.
How to use it
- Some traders watch CMF staying above zero as steady buying pressure.
- Use zero-line crosses as changes in flow.
- Look for divergence between CMF and price.
- Use it to check breakouts for volume support.
These are ways some traders read it, for learning. They are not trade signals.
Settings
| Setting | Default |
|---|---|
| Settings | |
| LengthLookback length over which money flow volume and volume are summed. | 20 |
| Style | |
| CMF LineColor of the Chaikin Money Flow line. | #787b86 |
| BullishLine and fill color while the CMF reads above zero (net money flowing in). | #089981 |
| BearishLine and fill color while the CMF reads below zero (net money flowing out). | #f23645 |
| Zero LineColor of the zero reference line. | #787b86 |
Alerts
You can alert on its line crossing a value or the candle close (from the chart's + menu); checked while ZoroCharts is open.
Notes and limits
- It needs volume data; on symbols without volume it shows nothing useful.
- Bars with no range add nothing.
Education only. Not financial advice. Indicators mark what happened on the chart; they do not predict what price will do. Trading futures, forex, crypto and other markets carries a high level of risk and may not be suitable for everyone.