1
Money Flow Multiplier
Places the close from −1 near the low to +1 near the high of the bar.
Lesson · Volume and Order Flow
Accumulation/Distribution and Chaikin Money Flow
Measure where price closes inside each bar’s range and weight that location by volume.
Core concepts
What to understand
Keep the interpretation direct: participation, aggressive side, and actual price progress.
2
A/D Line
Cumulatively adds the multiplier multiplied by volume.
3
Chaikin Money Flow
Sums money-flow volume over a lookback and divides by total volume.
Interactive lab
Change the market conditions
Use the controls and read the “What the market is doing” explanation after each change.
Accumulation/Distribution and Chaikin Money Flow Lab
Synthetic educational data · no live market connection
MARKET DATA
Reading process
Follow the reading steps
Do not jump from one number to a trade. Describe the evidence first.
Inspect close location
Did bars generally close near their highs, lows, or middles?
Weight by volume
High-volume closes affect the measure more.
Compare with price
Confirm pressure, divergence, or balance over a sequence.
Knowledge check
Check your interpretation
Select one answer for each question. Feedback appears immediately.
1. A bar closes near its high on large volume. Its money-flow contribution is usually:
The multiplier is positive near the high, and large volume increases its effect.
2. CMF near zero most directly indicates:
Positive and negative money-flow contributions roughly offset over the selected period.
3. Does A/D identify actual aggressive buy and sell volume?
A/D is bar-based and does not classify each transaction.
4. High 110, low 100, close 108, volume 1,000. What are the money-flow multiplier and the money-flow volume?
((108 − 100) − (110 − 108)) ÷ (110 − 100) = (8 − 2) ÷ 10 = 0.6; times 1,000 volume gives money-flow volume of +600.
Practical rules
- Use sequences, not one candle.
- Remember close location is an inference.
- CMF near zero means neither side has persistent closing pressure.
Common mistakes
- Treating CMF as exact bid/ask delta.
- Ignoring gaps between bars.
- Using fixed zero crossings without market context.
References
Official reading
The lab is simplified; these sources provide the underlying market and execution definitions.
CME Group · What is Volume?
Official overview of how futures volume is counted and interpreted.