stelaraX - Chaikin Money Flow

stelaraX – Chaikin Money Flow

stelaraX – Chaikin Money Flow is a volume-based momentum indicator designed to measure buying and selling pressure over a defined period. By combining price location within the candle and traded volume, it helps identify whether capital is flowing into or out of an asset.

This indicator is part of the stelaraX ecosystem, focused on clean technical analysis and AI-supported chart evaluation
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Core logic

The Chaikin Money Flow (CMF) evaluates where the closing price lies within the high–low range and weights this position by volume. The result is averaged over a user-defined lookback period and normalized by total volume.

Key principles:

* closes near the high contribute positive money flow
* closes near the low contribute negative money flow
* values above zero indicate net buying pressure
* values below zero indicate net selling pressure
* higher absolute values reflect stronger conviction

Readings beyond typical threshold levels suggest sustained accumulation or distribution rather than short-term noise.

Visualization

The script plots:

* the Chaikin Money Flow as a histogram in a separate indicator pane
* green bars when CMF values are positive
* red bars when CMF values are negative
* a zero reference line for directional context
* additional reference levels at +0.05 and −0.05 for pressure strength

This layout makes shifts in capital flow and volume-backed momentum easy to interpret.

Use case

This indicator is intended for:

* identifying accumulation and distribution using volume flow
* confirming trend direction with volume confirmation
* spotting divergences between price and money flow
* filtering false breakouts and weak price moves
* supporting volume-based and smart money concepts

It works particularly well when combined with price structure, trend filters, or AI-assisted chart evaluation.

Disclaimer

This indicator is provided for educational and technical analysis purposes only and does not constitute financial advice or trading recommendations. All trading decisions and risk management remain the responsibility of the user.