Chaikin Money Flow (CMF) is a technical indicator that measures an asset's buying and selling pressure in financial markets. It was developed by Marc Chaikin and is based on the observation that an increase in volume often precedes a change in price. The indicator value oscillates between -1 and 1. Positive values indicate buying pressure, while negative values indicate selling pressure. When the CMF is above zero, it may signal a potential buy signal, while values below zero may indicate a possible sell signal. Traders may also look for divergences between the CMF and the asset price as potential buy or sell signals.
