Chaikin Money Flow (CMF): Understanding When Whales Are Buying

Two main players in the financial markets are the large whales and the small retail traders. The large institutions and whales are the ones who typically move the market’s pricing, whereas the small retail trader typically doesn’t. Therefore, the small retail trader can gain an edge if they can spot where the big money is flowing.

Technical indicators like the Chaikin Money Flow are designed to alert traders when the market is accumulating and set to rally higher. In this article we’ll review what the CMF is, and how to read it so you can spot where the big money is flowing. 

What Does Chaikin Money Flow Tell You? 

The Chaikin Money Flow indicator tells traders if institutions, whales and investors are accumulating and buying crypto, or distributing and selling the market. Essentially, CMF indicates the money flow behind crypto.