The Chaikin Money Flow compares the total volume over the last n time periods to
the total of volume times the Closing Location Value (CLV) over the last n time
periods. The CLV calculates where the issue closes within its trading range.
When the Chaikin Money Flow is above 0.25 it is a bullish signal, when it is below
-0.25, it is a bearish signal. If the Chaikin Money Flow remains below zero while
the price is rising, it indicates a probable reversal.
The Chaikin Money Flow indicator was developed by Marc Chaikin.
The red area above shows a negative pull on the stock. The green area shows a positive
bias to the stock. If the price goes higher and the CMF diverges, it could mean
the move may be coming to an end. The reverse is true for bottoming trends also.