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Chaikin Money Flow (CMF)

​CMF (Chaikin Money Flow) technical analysis algorithm was developed by Marc Chaikin in 1966. CMF explains the strength of the market in terms of money inflow and outflow. The direction of the CMF movement indicates the strength of the buy or sell. According to this; for an upward moving CMF, as an increase in buyers in the market, that is, an increase in money flow; For a CMF moves downward, it is interpreted as an increase in sellers, that is, a decrease in money flow. It is usually found using periods of 20 and 21 days. CMF movement oscillates between -1 below the zero line and +1 above it.
When the CMF crosses above the zero line it is considered a possible buy signal for traders, and when it crosses below the zero line, it is considered a possible sell signal for traders.