Chaikin Money Flow is one of the popular indicators used by majority of active traders especially technical analysts. It is the foundational building block of some very profitable algorithmic trading systems. In this post, we would go through a fully automated Excel sheet which calculates Chaikin Money Flow for any stock symbol. The sheet is also equipped with real-time buy sell signals and backtesting result for intraday timeframe. Read on to know more about this indicator and you can download the excel sheet from the end of this post.
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What is Chaikin Money Flow?
Chaikin money flow (CMF), is an oscillator whose values range between -1 to +1. It signifies the buying or selling pressure of a security for a particular lookback period. Any lookback period can be considered, but 20 or 21 periods are the most common values. CMF was formulated by a renowned technical analyst named Marc Chaikin. This indicator is very accurate as it measures the money flow volume for a specific period. The combination of money flow and volume in a single indicator makes it a popular choice among technical analysts.
CMF Calculation and Interpretation
Below are the steps to calculate Chaikin money flow for any financial instrument:
1. Calculate Money flow multiplies for each candle using below formula
Money Flow Multiplier = [(Close – Low) – (High – Close)] /(High – Low)
2. Calculate money flow volume
Money Flow Volume = Money Flow Multiplier x Volume
3. Calculate CMF for ‘n’ period using below formula
n Period CMF = n Period Sum of Money Flow Volume / n Period Sum of Volume
The most common values of n are 20 and 21
Chaikin Money Flow values oscillate between -1 and +1. Any positive value or a move from negative to positive territory is considered as Bullish. While any negative value or a move from positive to negative territory is considered as Bearish.
All the above calculation and interpretation steps have been completely automated in the Excel sheet.
Chaikin Money Flow Excel Sheet Overview
This is an automated macro enabled spreadsheet which calculates CMF value and Buy/Sell signals for the symbol entered. Also, it would auto calculate the profit/loss points based on the signals. You need not to do anything manually.
See the below screenshots:
How to use this Excel Sheet
Step 1: Download the Excel file from the end of this post.
Step 2: Open this Excel file and make sure you are connected to internet. Please accept if it asks to enable Macros and Data connections.
Step 3: Input the Symbol Name, Exchange Name, Interval, Number of Days, and Lookback Period
Step 4: Click on Get Data button. The data would be automatically downloaded and CMF values would be calculated. This data can be downloaded for max 15 days and the minimum interval is 1 minute.
Step 5: See the Signal column for Buy/Sell signals
Step 6: Check the Total Profit section for the overall profit/loss for the given period.
Download link for Chaikin Money Flow Excel Sheet
Please see the below link to download CMF indicator excel sheet. Let us know if you have any feedback or comments.