Volume & order-flow
Chaikin Money Flow (CMF)
A volume-based oscillator of accumulation vs distribution.
What is Chaikin Money Flow (CMF)?
Chaikin Money Flow (CMF), from Marc Chaikin, measures buying and selling pressure over a period by combining price position within each bar's range with volume. It oscillates around zero between roughly +1 and −1.
How it works
Each bar's money-flow volume depends on where the close sits in the bar's range, weighted by volume; CMF sums these over the lookback. Positive CMF indicates accumulation (buying pressure), negative indicates distribution. Crosses of zero and divergence are the key signals.
How traders use it
- ▸Zero line: positive = accumulation, negative = distribution.
- ▸Confirmation: rising CMF supports a price breakout.
- ▸Divergence: CMF/price disagreement warns of reversals.
- ▸Filter: avoid longs when money flow is negative.
Build Chaikin Money Flow (CMF) without code in Algovex
CMF is a node in Algovex, use its zero-cross or divergence with your entries, backtest on volume data, and export.
Key parameters
| Parameter | What it does |
|---|---|
| length | Lookback period (commonly 20 or 21). |
Frequently asked questions
What does Chaikin Money Flow measure?
CMF measures whether an instrument is under accumulation (buying pressure) or distribution (selling pressure) by combining where price closes in each bar's range with volume. Positive readings are bullish, negative bearish. Algovex offers it as a node.