Chaikin Money Flow (the CMF Indicator) was created by Marc Chaikin in the early 1980s as a way to measure the accumulation (buying pressure) vs.SkiptocontentChaikinMoneyFlowWhatisChaikinMoneyFlow(CMFIndicator)?AQuickOverviewChaikinMoneyFlow(theCMFIndicator)wascreatedbyMarcChaikinintheearly1980sasawaytomeasuretheaccumulation(buyingpressure)vs.distribution(sellingpressure)ofastockovertime.ChaikinMoneyFlowisdisplayedasagreen/redoscillatorarounda0-line,rangingfrom+100to-100,withgreenregionsrepresentingnetbuyingpressure,andredregionsrepresentingnetsellingpressure.Becauseofthewaythecalculationwasdesigned, moneyflowpersistency (significantregionsofgreenorredovera6-9monthperiod), canbesignsofaccumulationordistributionbymajorinstitutionswhichhaveadisproportionateeffectonfuturepricemovement.  Thisistrueeventhoughthecalculationlooksonlyatprice/volumeactivity,ratherthandirectlymonitoringinstitutionalorderflow.Ashort-term moneyflowdivergence —wherepricerisesbutMoneyFlowstaysnegative,orviceversa—canindicateanincreasedriskofashort-termreversal.TheFormulaTheformulaforthedailyChaikinMoneyFlowvalueis:((((Close–Low)–(High–Close))/(High–Low))*Volume)/Total(Volume,21)Thevaluerangesfrom+100to-100,reflectingastock’svolume-weightedclosingperformanceoveraonemonth(21-day)periodUnderstandingChaikinMoneyFlowNotallpricemovesarecreatedequal—astockmaygoupwhile“hittingitsheadontheceiling”or“bouncingoffthefloor.”ChaikinMoneyFlowlooks“inside”astock’stradingactivitytodistinguishpricemovementswhicharelikelytobesupportablebasedonprice/volumepatterns,fromthosewhicharenot.ChaikinMoneyFlowlooksattwoimportantfactorstodeterminethelikelysustainabilityofapricemove:Hasthestockbeenclosingstrongduringthismove?Hasthemovehappenedonrelativelyhighorlowvolume?Buyingpressureisrepresentedbystockswhichhavebeenclosinghighintheirdailyrange,onhighvolume.Sellingpressureisrepresentedbystockswhichhavebeenclosinglowintheirdailyrangeonhighvolume.ClosingPerformanceInthefirstcase,welookatclosingperformance—whereastockclosesinitsr