Chaikin Money Flow {CMF(Indicator)}

Chaikin Money Flow {CMF(Indicator)}

Chaikin Money Flow (CMF) basically aik technical indicator hy ye keemat aur hujjam dono ko use karta hai . lekin mostly Selling pressure Jo market me mojood hota hy us ko calculate karny k leay use hota hai. is indicator ko volume weight CMF kaha jata hai.



CMF using RSI formula

chaikin money flow aik asa makhsoos indicator hai jo volume aur momentum dono ko RSI formula mein use karta hai. yeh indicator ki value ko above 50 ho tou market mein bull trend samjha jata hai . iss trhan is indicator ki value 50 se less than ho tou market mein bear trend samjha jata hai. jb CMF ki value 80 hojae tou yeh over bought ko slow karta hai is trhan jb MFi ki value 20 hojae tou yeh over sold show karta hai.money flow index aur relative strength index dono aek dusry k closely related hoty hainin mein difference yeh hai ky CMF volume ko use karta hai Aur RSI aesa nahi karta.



Signals Through CMF (chaikin money flow)

chaikin money flow basically signal provide krta hai aur trader ko pehly se hi warning deta hai mumkin reversal ya trend ki tabeeli kay bary mein lekin RSI ki trha hi ye bhi signal provide karta hai. lekin RSI ki trhan is ki value bhi 0 to 100 k mid vary karti hai. CMF ki valus jab 20 se down ho jae tou trader ko buy ki trade open karni cahiye aur jab iski value 80 se up hojae tou order open karna chaiye.



CMF Difference with RSI

CMF ky mutabiq central point 50 sy upper side per ho tou market uptrend main hoti hai jo continue rehta hai isi terha agar market same centre point 50 sy down side per ho tou market down trend main hi rehti hai tou hamain market main trade bhi same trend ko follow kerty huay hi open kerni chahiay lekin jab market maximum position 80 per ponch jati hai tou market wahan tak overbought position main ja chuki hoti hai ky wahan per ham buy main trade enter ker ky bahot bara risk lety hain jab market same overbought position ko meet ker chuki ho tou hamain wahan sy sell main trade enter kerny chahien ky jab market overbought sy reverse direction main movement kerna shoru kerti hai tou wahan per sell main open order main profit hasil hona shoru ho jata hai jabky agar market downtrend main movement kerty huey minimum position 20 per ponch jati hai jo market main oversold position bhi hoti hai tou wahan sy hamain market main buy ki trade enter ker leni chahiay ky jesy main jab market oversold position ko meet ker leti hai tou wahan sy market ky reverse bhi zarur hona hota hai ky ham yahan per buy main trade enter ker sakty hain



Effectiveness of CMF

chaikin money flow Ka sahi istimaal tab he ho sakta hay jab ham is ki indication kay bad fundamental analysis ko bhi zehn main ralhen aur is kay bad ham support and resistance ko follow karty huye stop loss and take profit ka use karain. Mazeed hamain CMF ki ranges main trading karny kay liye proper risk managemnet karni chahiye.

Re: Chaikin Money Flow {CMF(Indicator)}

Introduction

Friends money flow volume measure karta ha, is ko Marc Chaikin na develop kia, ye hmain market ma buyers aur sellers k pressure k baray ma b btata ha. CMF, Accomulation/Distribution indicator par base karta ha jo market ya pairs ki close price aur volume ko high aur low range k sath compare karta ha, ye is idea par base karta ha k jb market ki closing price high par close hoti ha to wazay accomulation hoti ha aur jb closing prices lower k kareeb close hoti hain to distribution hoti ha, CMF kisi trend ko confirm karnay k liay, trend ki strength ko measure karnay k liay ya trend reversals aur break out k liay b use hota hea CMF ko 4 steps ma calculate kia jata hea First step ma Money Flow multiplier calculate kartay hain jis ma close price aur low price k difference sa high price aur close price k difference ko subtract kia jata ha aur phr result ko high price aur low price k difference sa divide kia jata hea.



Development of Indicator.

Friends Chaikin nay is indicator ko develop kia hay jo money flow volume ko calculate karta hay. Chaikin money flow sabqa period kay money flow volume ko measure karta hay jo keh tupical 20 ya 21 periods hain. CMF oscillator ki tarah he zero line kay above ya below fluctuates hota rehta hay. Traders selling aur buying pressure ka weight karny kay liye CMF ko use karty hain aur zero line say up and down values ki madad say money flow main change ko bhi janty hain.

Calculations of CMF.

Friends Money flow ko calculate karny k lae high, low or close price k elawa volume ko b consider karta hai. Ye usually daily frame work ma use ho sakta hai but ye 15 min time frame ma b use ho sakta hai. Money flow index = [(close- low)-(high-close) / (high-low)* volume] ab second step ma ham chaikin money flow ko find karyn gy es ko ham es tarha find kar sakty hain. Chaikin money flow index = 21 day average of daily money flow / 21 day average of volume. Ye indicator bhot sary trading platform hai.



Additional Note

Friends Chaikin Money Flow (CMF) ko measure karta hai aur bhot sary technical indicator ki tarha ye bhi es idea pe depend karta hai k hamesa price volume ko follow karti ha ye money flow oscillator MACD indicator ky similar working karta ha aur ye indicator both zero k above aur below move karta ha jab eski value zero sy above hoti hai to ye bullish trend ko indicate karta hai or jb eski value zero sy nechy show ho rahi ho to ye bearish trend ko show karta ha ye indicator market k trend ko find karny Ke lye use hota hai but ye isolated trading patterns ma betterly work ni kar sakta jab hum Money Flow multiplier calculate kartay hain jis ma close price aur low price k difference sy high price aur close price k difference ko subtract kia jata ha aur phr result ko high price aur low price k difference sa divide kia jata hea.