# What is Chaikin Money Flow (CMF)?

CMF is a technical indicator based on volume and comparing buyers and seller activity. The appeal of CMF is its simplicity it is range from 1 to -1 with 0 line as the point defining which side is in control.

## To calculate CMF

Step 1

Calculate the multi player for each of the 20 sessions [(close-low)-(high-close)]/(high-low)

Step 2

Multiply the result by the sessions volume

Multiplayer*volume for the session=money flow volume

Step 3

Add the totals for all 20 periods

Money flow volume*20 periods -20 period volume

Step 4

Divide by 22 find the average

20 period volume/20=CMF

the calculation can be chosen as a technical selection in developing price charts with cmf. The value of this indicator is is that is often reflects changes in momentum before price moves and confirm what candlestick formation show. The combined analysis of candlestick indicators and cmf provided a more reliable set of timing signals.

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