Chaikin Money Flow (CMF)
A/D Line logic normalised over a rolling window, expressed as a bounded ratio between −1 and +1. The zero line separates recent accumulation from recent distribution.
Overview
Chaikin Money Flow (CMF) is Marc Chaikin's own follow-up to the A/D Line. It uses the same Money Flow Multiplier — the close's position within the bar's range — but, instead of letting it accumulate forever, reads it over a rolling window of N bars (typically 20 or 21).
Where the A/D Line records every day in a stock's life as part of an ever-growing total, CMF answers a narrower question: over the last twenty sessions, has the tape been accumulating or distributing? Bounded between −1 and +1, it turns the A/D idea into an oscillator that is easier to compare across instruments and easier to read for the recent regime.
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