In the intricate tapestry of technical analysis, the Chaikin Money Flow (CMF) serves as a vital indicator, unveiling the flow of money into and out of a security over a specified period. This article will elaborate on the CMF, its interpretation, and its application in trading strategies.
What is Chaikin Money Flow (CMF)?
Developed by Marc Chaikin, the CMF is a volume-weighted average of accumulation and distribution over a specified period. It offers insights into market strength and potential future movements by analyzing the extent to which a market is being accumulated or distributed.