AI Overview
The Chaikin Money Flow (CMF) indicator is often compared to other indicators that monitor momentum and money flow, such as the Money Flow Index (MFI) and On Balance Volume (OBV):
- Similar to CMF, MFI uses price and volume data to assess market sentiment. However, the calculation methods and interpretation differ. MFI is volume-weighted, while CMF compares the closing price to the high and low prices. MFI readings range from 0 to 100, while CMF readings range from -1 to 1.
- A momentum indicator that uses volume to forecast price changes. OBV is based on how institutional and retail investors impact trading volume and market prices.
CMF is a money flow oscillator that works best when combined with other tools and analysis. It's often used on daily charts, but can also be used on intraday charts. The default CMF period is 21 days, but traders can use multiples of this number.
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