Chaikin Money Flow with Moving Average

18. Feb.

This indicator combines the Chaikin Money Flow (CMF) with a moving average, helping traders analyze buying/selling pressure and whether it's increasing or decreasing.

What It Does:
Chaikin Money Flow (CMF) developed by Marc Chaikin is a volume-weighted average of accumulation and distribution over a specified period.
A moving average is applied to CMF to reduce noise and smooth trends, making it easier to identify sustained market sentiment shifts.

How to Use It?
CMF helps confirm trend strength and potential reversals. We reduces false signals from CMF by smoothing fluctuations and making it easier to spot trends.

• A CMF value above zero is a sign of strength, and a value below zero is a sign of weakness.
  
• A rising price with a falling CMF (below moving average) is a bearish divergence and a possible reversal of the uptrend.
  
• Similarly, a falling price with a rising CMF (above moving average) is a bullish divergence and again signals a possible reversal of the downtrend.
  

Configurable Parameters:

• CMF Length: Adjusts how many periods are used for CMF calculation.
  
• MA Type: Choose between SMA, EMA, WMA, VWMA, or T3 for smoothing.
  
• MA Length: Controls how much smoothing is applied.
  

This tool is great for traders looking to improve volume-based trend analysis while filtering out short-term noise.

18. Feb.

Versionshinweise

Update chart and default smoothing type.

20. Feb.

Versionshinweise

Update the chart