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Registered User
Joined: 11/25/2004
Posts: 47
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Hi,
I like CMF indicator (in addition to others), but TC does not have this. Is there any other Indicator in TC that has some resemblance to CMF? Currently I check this in Internet from other sources.
Thanks.
chandra
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Worden Trainer
Joined: 10/1/2004
Posts: 4,308
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This is what I found on the CMF indicator on the internet:
(((close - low) - (high - close)) / (high - low)) * volume
Then sum the above values over the lookback period. Divide this result by the sum of the volume over the lookback period.
Try the following formula to see if it approximates what you want for a standard 21 day lookback period:
(((AVGC21-AVGL21)-AVGH21-AVGC21)) / (AVGH21-AVGL21)) * AVGV21
- Doug
Teaching Online!
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Registered User
Joined: 11/25/2004
Posts: 47
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Hi Doug,
Thank you for the equation. It seems to be showing approximately similar curve. But the scale is totally different. Normally the scale is between +1 to -1, but here it goes in thousands because of multiplying by volume at the end. Its scale does not give any idea about the current value, due to changes in average volume between stocks. May be I will put this in suggestion box.
Thanks.
chandra
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Worden Trainer
Joined: 10/1/2004
Posts: 4,308
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The original info I found on the web said something about dividing by the SUM of the volume numbers for the period. That would have meant adding 21 days of volume, and then dividing by that number. That didn't seem right, but it certainly would have made the scale have smaller numbers.
- Doug
Teaching Online!
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Registered User
Joined: 10/7/2004
Posts: 799
Location: Duluth, GA
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If the following description is what you want:
(((close - low) - (high - close)) / (high - low)) * volume
Then sum the above values over the lookback period. Divide this result by the sum of the volume over the lookback period.
Then the solution cannot simply be averaged, since there is a division involved that invalidates the distributive property. Here's what you need:
(((close - low) - (high - close)) / (high - low)) * volume
can be simplified algebraically (and excess paren's stripped) to:
(2*close - low - high) / (high - low) * volume
in PCF-eze that is:
(2*C-L-H)/(H-L)*V
The summation over 21 days, with normalization by the sum of the volume, should yield the regularized range you are seeking. The full PCF would be:
(
(2*C-L-H)/(H-L)*V +
(2*C1-L1-H1)/(H1-L1)*V1 +
...
(2*C19-L19-H19)/(H19-L19)*V19 +
(2*C20-L20-H20)/(H20-L20)*V20
) / (AvgV21 * 21)
Note that the AvgV21 * 21 term is a shorthand way of adding up the 21 individual V's for the period. Just fill in the other 17 terms in the middle, and you will be good to go.
Jim Dean
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Registered User
Joined: 10/7/2004
Posts: 799
Location: Duluth, GA
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P.S. I double-checked the formula in AtoZ ... it is a correct implementation of Chaikin's Money Flow.
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Registered User
Joined: 11/25/2004
Posts: 47
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QUOTE (Tanstaafl) P.S. I double-checked the formula in AtoZ ... it is a correct implementation of Chaikin's Money Flow.
Thank you Jim. That seems to make sense (it also matches with what Doug wrote about sum of volume in the bottom). I will try it. Additional thanks for showing exact PCF terms also!
chandra
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