Chaikin's Cash Flow (CMF) serves as a quantitative tool for evaluating cash flow volume over defined periods. Developed by Mark Chaikin, it measures buying and selling pressure of securities within a single timeframe and then aggregates it for a specified period—commonly 20 or 21 days. The CMF ranges between 1 and -1, offering insights into market dynamics.
Calculation involves determining a cash flow multiplier, computing cash flow volume, and then deriving the CMF. A period closing in the upper half of its range signals buying pressure, while a close in the lower half hints at selling pressure.
CMF assists in trend confirmation, with values above 0 supporting bullish trends and values below 0 indicating bearish trends. Crossings of the zero line suggest potential trend reversals. Accuracy can be improved by using lines such as 0.05 and -0.05 to filter ...
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Calculation involves determining a cash flow multiplier, computing cash flow volume, and then deriving the CMF. A period closing in the upper half of its range signals buying pressure, while a close in the lower half hints at selling pressure.
CMF assists in trend confirmation, with values above 0 supporting bullish trends and values below 0 indicating bearish trends. Crossings of the zero line suggest potential trend reversals. Accuracy can be improved by using lines such as 0.05 and -0.05 to filter ...
👉 Read | AlgoBook | Share!
#MQL5 #MT5 #CMF
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