The Chaikin Money Flow Divergence indicator is a practical tool in technical analysis that combines the strength of money flow with divergence signals.
This MetaTrader 4 oscillator is an advanced version of the Chaikin Money Flow (CMF) indicator, which not only evaluates buying and selling pressure but also detects divergences between price and liquidity volume, generating trading signals.
CMF Divergence Indicator Specifications
The key features of the CMF Divergence Oscillator are summarized in the table below:
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Indicator Categories:
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Oscillators MT4 Indicators
Signal & Forecast MT4 Indicators
Trading Assist MT4 Indicators
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Platforms:
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MetaTrader 4 Indicators
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Trading Skills:
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Intermediate
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Indicator Types:
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Leading MT4 Indicators
Reversal MT4 Indicators
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Timeframe:
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Multi-Timeframe MT4 Indicators
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Trading Style:
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Day Trading MT4 Indicators
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Trading Instruments:
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Share Stocks MT4 Indicators
Forward Market MT4 Indicators
Indices Market MT4 Indicators
Stock Market MT4 Indicators
Cryptocurrency MT4 Indicators
Forex MT4 Indicators
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Indicator in an Uptrend
In the AUD/CHF uptrend, after confirming positive divergence, the price starts rising, and the indicator generates a buy signal.
If CMF crosses above the zero line, this further strengthens the trend's validity.
Indicator in a Downtrend
In the AUD/CAD 1-hour chart, after detecting a divergence between price and CMF oscillator, the indicator issues a sell signal.
When the CMF line crosses below zero, the bearish trend becomes more reliable.
CMF Divergence Indicator Settings
The settings panel for the CMF Divergence Indicator is displayed in the image below:
- CMF Periods: Calculation period for CMF
- Type Of Volumes: Volume calculation type for the indicator
- Number of candles for Pivots calculation: Number of candles used for pivot calculations
- Maximum distance between two pivots: Maximum distance between two pivots
- Minimum distance between two pivots: Minimum distance between pivots
- Number of divergences from pivot: Number of divergences detected from a pivot
- Number of CCI that break the line: Number of CCI line breaks
- Shift: Price shift value
- Sell Divergence: Color of the sell divergence signal
- Buy Divergence: Color of the buy divergence signal
- Width: Line thickness
Conclusion
The Chaikin Money Flow Divergence Indicator is an advanced and hybrid trading tool that not only analyzes market liquidity flow but also detects divergences between price and money flow volume, generating trading signals.
This MetaTrader 4 trading tool is used to confirm trend direction and identify the best entry and exit points across various markets, such as Forex.
What is the Chaikin Money Flow Divergence Indicator (CMF Divergence)?
This indicator is a hybrid tool in technical analysis, which evaluates market liquidity flow, detects divergences between price and money flow volume, and provides buy and sell signals.
How is CMF Divergence different from the classic CMF Indicator?
The classic CMF only evaluates liquidity flow, while the CMF Divergence Indicator not only does this but also detects positive and negative divergences and generates trading signals.