Money Flow

(redirected from Chaikin Money Flow)

Money Flow

In technical analysis, a measure of the change in value to a security on a trading day. It is calculated by averaging the high price, low price, and closing price and multiplying the result by the trading volume. One compares money flow to the money flow of the previous trading day to determine if it is positive (meaning day 2 is higher than day 1) or negative (meaning the opposite). A negative money flow on a rising share price may indicate that the price increase is unsustainable.
References in periodicals archive ?
He is best known for the Chaikin Money Flow Indicator and Chaikin Persistency of Money Flow, which is the basis of Investor's Business Daily's Accumulation/Distribution (Acc/Dis) Rating.
Although the stock is somewhat overbought, ADX continues to rise and Chaikin Money Flow (CMF) is extremely strong.