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Chaikin Money Flow (CMF)

The Chaikin Money Flow (CMF) is an oscillator that combines price and volume data to measure the accumulation or distribution of money in a security. CMF is calculated by summing the Money Flow Volume over a specific period and dividing it by the total volume. 

Positive CMF values indicate buying pressure, suggesting that money is flowing into the security. Negative values suggest selling pressure. Traders use CMF to confirm the strength of a trend, identify potential trend reversals, or detect divergences between price and indicator. By incorporating the Chaikin Money Flow into their analysis, traders gain insights into the flow of money within a security and can make more informed trading decisions.

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