Chaikin Money Flow
The Chaikin Money Flow function is based on an indicator developed by Marc Chaikin. It computes the sum of the Accumulation Distribution line values for a stock over a specified number of time periods, and divides this by the total stock volume over the same duration. When the CMF value is above zero, this indicates buying pressure. When the CMF value is below zero, this indicates selling pressure. Applications of Chaikin Money Flow include determining if a stock is under accumulation or distribution. For example, if the CMF value remains above zero for an extended period of time, this indicates accumulation.
1. Syntax
CHKMONEYFLO(d0,d1,d2,d3,s0,Alignment)
2. Input
The Chaikin Money Flow function requires the following input series:
- d0 - High data values - The first set of data values for which the Chaikin Money Flow is calculated, usually the daily high price of a stock.
- d1 - Low data values - The second set of data values for which the Chaikin Money Flow is calculated, usually the daily low price of a stock.
- d2 - Close data values - The third set of data values for which the Chaikin Money Flow is calculated, usually the daily close price of a stock.
- d3 - Volume data values - The fourth set of data values for which the Chaikin Money Flow is calculated, usually the daily volume.
3. Parameters
The Chaikin Money Flow function has the following parameter:
- s0 - Short Period - The short time period to use in the calculation. Default value is 21.
- Alignment (Optional) – Hierarchy placeholder to be used as the alignment axis.
4. Output
The Chaikin Money Flow function generates the following output:
- Chaikin Money Flow - The Chaikin Money Flow result set.