The Chaikin Money Flow Indicator (CMF) is, in my opinion, one of the most powerful trend indicators out there. The Chaikin Money Flow Indicator was developed by Marc Chaikin in the late 90’s for S&C. I searched high and low for a TradeStation version of this, but came up short. So this one is a custom conversion. I tested it against StockCharts.com and it performed very similarly
Chaikin Money Flow is a Bull and Bear trend indicator. Basically the value of the CMF doesn’t tell you much but whether it is positive or negative tells you if the stock is trending bullishly, or bearlishly. Length of time in the bear or bull trend is also very important. If the Chaikin Money Flow indicator drops from bear to bull or bull to bear for a short time and returns to it’s previous reading, it is thought to mean nothing and can be ignored, provided that your other indicators agree. Never use the Chaikin Money Flow by itself, and always use the Chaikin Money flow with another indicator to confirm. I personally use RSI, Slo Sto and Williams %R along with Chaikin Money Flow. Good Luck and post a comment below if you have any updates or experiences using the Chaikin Money Flow indicator
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Tags: C, Chaikin Money Flow, CMF, Marc Chaikin
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