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.

## SSL Channel MTF PIN Change Log

``````//+------------------------------------------------------------------+
//|                                 Chaikin Money Flow Indicator PIN |