Capstone Companies Inc (CAPC)

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DEFINITION

Chaikin's money flow is based on Chaikin's accumulation/distribution. Accumulation/distribution, in turn, is based on the premise that if the stock closes above its midpoint [(high+low)/2] for the day, then there was accumulation that day, and if it closes below its midpoint, then there was distribution that day. Chaikin's money flow is calculated by summing the values of accumulation/distribution for 21 periods and then dividing by the 21-period sum of the volume.

CMF and Acc/Dist can be gamed just like hammer candles can for a thinly traded stock. Investor beware.

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