top of page

Indicator:

Chaikin Money Flow

Chaikin Money Flow is an indicator that combines price and volume data to measure the amount of buying and selling pressure in the market. By tracking the flow of money into or out of an asset, it helps traders identify potential trend reversals and the strength of ongoing trends. CMF provides valuable insights into market sentiment, making it a useful tool for confirming price movements and refining trading strategies to improve decision-making and timing.

Chaikin Money Flow (CMF) Indicator


Type of Indicator

The Chaikin Money Flow (CMF) is a technical analysis indicator that combines price and volume data to determine the flow of money into and out of an asset. It is a volume-based indicator that helps investors understand market strength by assessing whether accumulation (buying) or distribution (selling) is the dominant process.


Purpose

The primary purpose of the CMF is to measure money flow over a specified period and identify potential turning points in the asset's price. CMF can be used to:

  • Confirm the direction of a trend,

  • Identify overbought and oversold conditions,

  • Detect divergences between the indicator and the price.


Calculation Method

Calculating the Chaikin Money Flow involves several steps:

Calculate the Money Flow Multiplier (MFM):

where:

  • CC is the closing price,

  • LL is the low price,

  • HH is the high price.

Calculate the Money Flow Volume (MFV):


Sum the Money Flow Volume over the selected period:

  • CMF is typically calculated for a 21-day period.


Trading Based on the Chaikin Money Flow Indicator

  1. Trend Confirmation:

    • When CMF is positive, it indicates a dominance of accumulation, suggesting that prices might continue to rise. This is a potential buy signal.

    • When CMF is negative, it indicates a…

Specializing in futures, prop trading firms offer funded trading accounts to those who meet specific evaluation standards. Traders can access diverse markets, including commodities and indices, and gain from extensive support resources. These include educational programs, market analysis tools, and one-on-one mentoring to help traders optimize their strategies. By equipping traders with knowledge and capital, these firms play a crucial role in improving their trading performance and market understanding.

Top-Rated Prop Trading Firms for Futures

logo_288x162_xm.png
Alpha Futures offers futures trading with substantial capital, profit splits up to 90%, and rigorous risk management. Join with a capital allocation of up to $450K.

Instruments:

CME

Platforms:

AlphaTicks
logo_288x162_xm.png
Purdia Capital offers professional futures trading with various account types, up to 90% profit split, and a strong risk management system. Start trading with proven platforms.

Instruments:

CME, COMEX, CBOT, NYMEX

Platforms:

Tradovate, TradingView, NinjaTrader
logo_288x162_xm.png
Savius offers instant funding for futures traders, with profit shares up to 80% and accounts up to $300K. Trade on CME, CBOT, NYMEX with advanced platforms.

Instruments:

CME, COMEX, CBOT, NYMEX

Platforms:

Atas, Quantower, Volsys, Volbook

Trading tools provide essential support for traders, equipping them with advanced features like market scanners, automated trading bots, and real-time alerts. Platforms such as Trading Central, TradingView, and Autochartist are widely used to analyze market trends and identify profitable setups. These tools enable traders to enhance their decision-making, optimize their strategies, and manage risk across various asset classes, including stocks, forex, and commodities. Whether trading in Europe, the US, or globally, they offer valuable insights for market success.

Top Tools for Smart Trading Decisions

Trading Central offers advanced technical analysis, real-time market data, and comprehensive insights into financial instruments. It helps traders efficiently identify patterns and potential trading opportunities, making informed decisions based on reliable data and expert analysis.
Myfxbook Economic Calendar helps investors track key economic events and analyze their potential impact on financial markets. It offers detailed event descriptions and historical data, enabling traders to anticipate market reactions and make better-informed trading decisions.
Autochartist identifies technical patterns in real-time, offering traders alerts and detailed analyses to optimize investment decisions. It provides a variety of pattern recognition tools that help traders anticipate market movements and react swiftly to changing conditions.
Yahoo Portfolio & Tracker allows investors to manage portfolios, access real-time data, and utilize advanced analytical tools for making informed investment decisions. It provides a user-friendly platform to track market trends, news, and individual stock performance comprehensively.
Forex Factory Traders provides detailed analytics and a social platform for currency traders to share strategies, track performance, and discuss market trends. It fosters a community where traders can learn from one another and improve their trading tactics through collective insights.
TradingView Ideas lets traders share market analyses and strategies, fostering knowledge exchange and enhancing trading skills through active community interaction. It serves as a valuable platform for users to discuss trading ideas, study market trends, and follow experienced traders' recommendations.

Stock brokers simplify investing by providing investors with access to companies listed on global exchanges, ranging from blue-chip stocks to emerging market opportunities. With their services, investors can diversify their holdings and take advantage of capital gains or dividends. These brokers offer a wide range of resources, including market research, trading tools, and educational materials, making it easier for investors to make informed decisions. By using these brokers, investors can work toward achieving their financial objectives and building wealth over time.

Best Brokers for Stock Market Investing

logo_288x162_xm.png
Lightspeed is a top broker for active stock traders offering low commissions and advanced platforms like Lightspeed Trader. Enjoy fast execution, flexible pricing, and access to major exchanges.

Instruments:

US Stocks: NYSE, NASDAQ, AMEX, OTC Markets

Platforms:

Lightspeed Trader, Eze EMS Pro, Eze EMS Express, Sterling Trader Pro, Sterling Vol Trader, SILEXX OEMS
logo_288x162_xm.png
Alaric Securities provides zero-commission US stock and options trading, along with access to NYSE and NASDAQ. Benefit from fast execution, advanced tools, and competitive rates on other markets.

Instruments:

US Stocks: NYSE, NASDAQ, AMEX, OTC Markets

Platforms:

Hammer Proâ„¢, Hammerâ„¢ Lite+, Hammerâ„¢ Lite, Sterling Trader Pro, Sterling LST
logo_288x162_xm.png
Ally Invest provides commission-free trading for stocks and ETFs, low-cost options at just $0.50 per contract, and powerful tools like real-time data and margin trading for both new and experienced investors.

Instruments:

US Stocks: NYSE, NASDAQ, AMEX, OTC Markets

Platforms:

Ally Invest Web Platform, Ally Invest Desktop, Ally Mobile App
TRADING

FTSE 100

S&P 500

BROKERS
PROP FIRMS
COMPETITIONS

Prop firm competition

BLOG
EDUCATION
TRADING TOOLS
Investment Risk Warning

Investing in financial instruments such as stocks, futures contracts, or contracts for difference (CFDs) involves significant risks, especially when leverage is used. Leverage can substantially amplify potential profits but also significantly increase losses. Investors should be aware that trading on financial markets may lead to the partial or total loss of their invested capital. Leveraged trading adds further risk exposure, as even small price fluctuations can result in significant financial losses. Such investment opportunities may not be suitable for every investor. Before making any decision to engage in trading, ensure that you fully understand the associated risks, including market volatility, and that you have the necessary knowledge and experience to make informed decisions. If in doubt, it is highly recommended to seek advice from an independent financial advisor who can help tailor an investment strategy aligned with your personal goals and financial circumstances.

Investment  Advice Disclaimer

The blog tradingaddict.eu is not an investment advisor. The information, analyses, and opinions presented on the blog are solely for educational and informational purposes. Users should carefully consider the content in the context of their own financial and investment situations. All investment decisions are made solely at the user's own risk. The blog assumes no responsibility for any losses resulting from the use of its published content.

Advertising Disclaimer

The blog tradingaddict.eu may receive compensation from advertisers whose content or services appear on the site, particularly in the form of posts, recommended services, or other types of advertisements. Commercial collaborations do not affect the objectivity of the analyses or opinions published. However, users should be aware of the potential existence of conflicts of interest.

© 2024 by TradingAddict.Eu

bottom of page