Courses / Volatility and Volume Indicators

Accumulation/Distribution and Chaikin Money Flow

Tools that judge where the close sits in the range, weighted by volume.

The accumulation/distribution line adds volume when the close is in the upper part of the candle range and subtracts it when in the lower part. Chaikin Money Flow (CMF) averages this over a period.

Positive CMF suggests buying pressure, negative selling pressure. Divergence with price can warn of a turn.

They are less precise than they look, so combine with price action.

Key takeaways

• Close location within the range, weighted by volume
• CMF above zero = buying pressure
• Combine with price action

Quiz

• CMF above zero suggests: Answer: Buying pressure. Positive money flow.
• The A/D line depends on the: Answer: Close location within the range. Where the close sits.
• You should combine these with: Answer: Price action. Context matters.

Educational content, not financial advice.