The Chaikin Money Flow (CMF) Indicator, belongs to a family of indicators that use a volume-weighted approach to determining market direction. CMF is an oscillator: a value above zero implies the momentum is up (go long) and a value below zero implies the momentum is down (go short).
CMF Calculation
The calcualtion or he Chaikin Money Flow is performed in three stages:
Firstly, we need to determine the Money Flow Multiplier, which is the relative position of the close price to the height of the candle, as follows:
MFM = [(Close - Low) - (High - Close)] /(High - Low)
Secondly, we need to calculate the Money Flow Volume of a single candle, which is the product of the Money Flow Multiplier and the Volume*.
MFV = MFM x VOL
Finally, to obtain the Chaikin Money Flow (CMF) we need to turn this into moving average over our chosen period, let’s say 20 candles:
CMF = Sum of MFM over 20 candles / Sum of VOL over 20 candles.
(*) In FX, the reported volume is actually Tick-Volume rather than the ‘True-Volume of the stock market.
How to CMF Indicator PIN works
The PIN version of the indicator simply checks if the CMF value for each time-frame is above or below zero, and sets the corresponding buy or sell signal.
CMF PIN Settings
For each timeframe you can select a different mode:
- Disabled (D) – The timeframe will be ignored.
- Enabled (E) – Gives a trend signal based on the relevant positions of the SSL channel and price.
Other important setting are:
- Period – Sets the averaging period of the CMF. Typical values are between 14 and 30.
Download “JagzFX Chaikin Money Flow (CMF) Indicator MTF PIN”
JagzFX_PIN_CMF_MTF_v1_01.ex4 – Downloaded 183 times – 39.83 KBSSL Channel MTF PIN Change Log
//+------------------------------------------------------------------+
//| Chaikin Money Flow Indicator PIN |
//| Copyright 2020, JagzFX |
//| https://jagzfx.com |
//+------------------------------------------------------------------+
//| v1.00 Initial version
//| v1.01 Update: Core = jagzfx_CDashEAX_v1_04.mqh
//| " Update: Convert to OnTimer()
