How to use the Chaikin Money Flow (CMF) indicator 📊
The Chaikin Money Flow (CMF) measures Money Flow Volume over a set period, usually 21 days, helping traders gauge buying and selling pressure
This indicator makes it easy for retail traders to find the price areas at which the accumulation or distribution occurs.
📈 A CMF value above zero indicates buying pressure, suggesting a potential upward trend.
📉 A CMF value below zero indicates selling pressure, hinting at a potential downward trend.
🔄 Look for divergences between CMF and price. If the price hits new highs but CMF does not, it might signal weakening momentum and a potential reversal.
✔️ Use CMF with other indicators to confirm trends. Sustained CMF values above or below zero strengthen the trend signal so you can have more conviction in your directional bets.
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