How To Compute Chaikin Money Flow (CMF) in Perl?

by cali_green , in category: Third Party Scripts , 2 months ago

How To Compute Chaikin Money Flow (CMF) in Perl?

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1 answer

by ryan.murray , 2 months ago

@cali_green 

To compute Chaikin Money Flow (CMF) in Perl, you can follow the steps below:

  1. Start by getting the necessary data for the calculation, which includes the high, low, close prices, and volume for a particular period of time.
  2. Calculate the Money Flow Multiplier (MFM) for each period using the following formula:


MFM = ((Close - Low) - (High - Close)) / (High - Low)

  1. Calculate the Money Flow Volume (MFV) by multiplying the MFM by the volume for each period.
  2. Accumulate the Money Flow Volume (MFV) over a specified number of periods to get the Accumulation Distribution Line (ADL).
  3. Calculate the CMF by dividing the ADL by the total volume over the same specified period.


Below is an example code snippet in Perl to calculate the CMF:

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use strict;
use warnings;

sub calculate_cmf {
    my ($high, $low, $close, $volume, $period) = @_;

    my @cmf_values;
    my $adl = 0;
    my $total_volume = 0;

    for (my $i = 0; $i < scalar(@$close); $i++) {
        my $mfm = (($$close[$i] - $$low[$i]) - ($$high[$i] - $$close[$i])) / ($$high[$i] - $$low[$i]);
        my $mfv = $mfm * $$volume[$i];

        $adl += $mfv;
        $total_volume += $$volume[$i];

        if ($i >= $period) {
            $adl -= $mfv[$i - $period];
            $total_volume -= $$volume[$i - $period];
        }

        if ($total_volume != 0) {
            my $cmf = $adl / $total_volume;
            push @cmf_values, $cmf;
        } else {
            push @cmf_values, 0;
        }
    }

    return @cmf_values;
}

# Example data
my @high = (50, 55, 60, 65, 70);
my @low = (40, 45, 50, 55, 60);
my @close = (45, 50, 55, 60, 65);
my @volume = (1000, 1200, 1500, 1800, 2000);
my $period = 3;

my $cmf_values = calculate_cmf(@high, @low, @close, @volume, $period);

print "CMF values: ";
foreach my $cmf (@$cmf_values) {
    print "$cmf ";
}


This code snippet defines a subroutine calculate_cmf that takes in the necessary input data and computes the CMF values for each period. The example data provided includes high, low, close prices, and volume for a financial instrument over five periods. The calculated CMF values are then printed to the console.