OPEN-SOURCE SCRIPT
Updated Chaikin Money Flow with Moving Average
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.
Configurable Parameters:
This tool is great for traders looking to improve volume-based trend analysis while filtering out short-term noise.
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.
Release Notes
Update chart and default smoothing type.Release Notes
Update the chartOpen-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
For quick access on a chart, add this script to your favorites — learn more here.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
For quick access on a chart, add this script to your favorites — learn more here.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.