CMF (Chaikin Money Flow) — what it is and how to use it in trading
Definition
CMF (Chaikin Money Flow) is an oscillator estimating whether each candle's close sits closer to its high (buying pressure) or its low (selling pressure), weighted by that bar's volume, averaged over period candles.
How it works in the builder
The cmf operand takes a period parameter (default 20). By construction of the classic formula the value usually falls roughly within -1 to 1, though the builder does not declare this as a strictly enforced bound.
What it looks like on the chart
Drawn as a separate panel, a histogram of equal-width bars above and below the zero line — the bar's color and height show the strength and direction of pressure on that specific bar.
Typical use
Typical condition: cmf(20) > 0 as a "buyers in control" filter before a long entry, or cmf(20) crossed_below 0 as a signal that pressure has shifted toward sellers.
Common pitfalls
On a ranging market CMF often oscillates around zero without a clear trend — a zero crossing alone is a weak signal. Like MFI, it is sensitive to uneven volume data on some instruments.
This block is available in the strategy builder
137 no-code blocks — build an entry condition with this term and test it on history
Historical results do not guarantee future ones. The service is an informational and analytical tool, not an individual investment recommendation; trades are not executed.