Definitions
In plain terms
The ratio is calculated after summing the window, not by averaging individual multipliers equally.
Technical
CMF_t = (Σ MFM_i V_i)/(Σ V_i), which preserves volume weighting across bars.
Scope
A simple mean of MFM values can differ materially when bar volumes differ.
Formula
CMF_t = (Σ MFM_i V_i)/(Σ V_i)CMF_t = \frac{\sum MFM_iV_i}{\sum V_i}| Symbol | Meaning | Unit |
|---|---|---|
MFM_i | window multiplier | dimensionless |
V_i | window volume | volume |
Output unit: dimensionless
Examples
- A reviewer computes CMF Ratio-of-Sums from a small OHLCV fixture and checks readiness, units, and edge cases before publication.
Common misconceptions
- A simple mean of MFM values can differ materially when bar volumes differ.
Concept relationships
Where this concept is used
Evidence and governance
- Chaikin Money Flow (CMF) TradingView · official platform documentation
Supports: preferred label, short definition, technical definition, formula
Limits: Does not establish a universal threshold, causal signal, or gap-aware interpretation.
- Accumulation/Distribution (A/D) Line TradingView · official platform documentation
Supports: preferred label, short definition, technical definition, formula
Limits: Does not turn the line into market breadth, identify trade initiators, or eliminate gap blind spots.
- Volume indicators function group TA-Lib · first party technical publication
Supports: preferred label, short definition, technical definition, formula
Limits: Library compatibility does not by itself prove a project's seed, warm-up, or missing-data policy.
- Chaikin Oscillator TradingView · official platform documentation
Supports: preferred label, short definition, technical definition, formula
Limits: The oscillator is not adopted as a causal or predictive claim for CMF or ADL.
- Reviewed by
- fintech-builder-batch-010
- Last reviewed
- 2026-08-01
- Next review
- 2027-08-01
- Record status
- evidence reviewed
This record is evidence-reviewed and readable, but not yet promoted to published — it is served noindex,follow and excluded from the sitemap.