/**
* Chaikin Money Flow (CMF) Indicator
* Volume-weighted measure of accumulation/distribution
*/
export interface ChaikinMFData {
cmf: number | null
signal: 'accumulation' | 'distribution' | 'neutral' | null
}
export function calculateChaikinMF(
highs: number[],
lows: number[],
closes: number[],
volumes: number[],
period: number = 21
): ChaikinMFData {
// Minimum 5 data points required
if (highs.length < 5 || lows.length < 5 || closes.length < 5 || volumes.length < 5) {
return {
cmf: null,
signal: null,
}
}
// Use adaptive period
const effectivePeriod = Math.min(period, highs.length)
// Calculate Money Flow Multiplier and Money Flow Volume
const moneyFlowVolumes: number[] = []
let totalVolume = 0
for (let i = 0; i < closes.length; i++) {
const high = highs[i]
const low = lows[i]
const close = closes[i]
const volume = volumes[i] || 0
// Avoid division by zero
if (high === low) {
moneyFlowVolumes.push(0)
} else {
// Money Flow Multiplier = ((Close - Low) - (High - Close)) / (High - Low)
const moneyFlowMultiplier = ((close - low) - (high - close)) / (high - low)
const moneyFlowVolume = moneyFlowMultiplier * volume
moneyFlowVolumes.push(moneyFlowVolume)
}
totalVolume += volume
}
// Calculate CMF for the specified period using effective period
const startIdx = Math.max(0, closes.length - effectivePeriod)
let sumMoneyFlowVolume = 0
let sumVolume = 0
for (let i = startIdx; i < closes.length; i++) {
sumMoneyFlowVolume += moneyFlowVolumes[i]
sumVolume += volumes[i] || 0
}
if (sumVolume === 0) {
return {
cmf: null,
signal: null,
}
}
const cmf = sumMoneyFlowVolume / sumVolume
// Determine signal
let signal: 'accumulation' | 'distribution' | 'neutral' | null = null
if (cmf > 0.1) signal = 'accumulation'
else if (cmf < -0.1) signal = 'distribution'
else signal = 'neutral'
return {
cmf,
signal,
}
}
