LVS – Daily Candlesticks – Chaikin Money Flow
April 7, 2011
How CMF is calculated. Finding the volume multiplier is the first step. This value is based on the level of the close relative to the high-low range. A close on the high equals +1, a close on the low equals -1 and a close in the middle equals 0. A close above the midpoint of the high-low range means the volume multiplier is positive and a close below the midpoint means the volume multiplier is negative. This value is multiplied by volume do get each period’s Chaikin Money Flow value.
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