How To Compute Chaikin Money Flow (CMF) using Golang?

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by cecelia , in category: General Help , 2 months ago

How To Compute Chaikin Money Flow (CMF) using Golang?

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1 answer

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by mohammad , 2 months ago

@cecelia 

To compute the Chaikin Money Flow (CMF) using Golang, you can follow these steps:

  1. Gather the necessary data: To calculate the CMF, you will need historical trading data, including the high, low, close, and volume of each trading day.
  2. Initialize variables: Create variables to store the sum of money flow volume and the sum of volume for the chosen period.
  3. Calculate the Money Flow Multiplier (MFM): MFM is calculated based on the typical price change and whether the close price is higher or lower than the previous close. The formula is as follows: typicalPrice := (high + low + close) / 3 moneyFlow := typicalPrice * volume If the close price is higher than the previous close, MFM will be positive. If not, it will be negative.
  4. Calculate the Money Flow Volume (MFV): MFV is the total accumulation of Money Flow over a specific period (e.g., 21 days). Add up the positive MFM values and the negative MFM values separately.
  5. Calculate the Chaikin Money Flow: CMF is calculated by dividing the difference between the positive and negative Money Flow Volume by the total volume over the same period. The formula is as follows: CMF := (positiveMFV - negativeMFV) / totalVolume


Here is a sample Golang code snippet that demonstrates how to compute CMF:

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package main

import (
	"fmt"
)

func calculateCMF(high, low, close, volume []float64, period int) []float64 {
	var cmf []float64

	for i := period; i < len(close); i++ {
		sumMFVPlus := 0.0
		sumMFVMinus := 0.0
		sumVolume := 0.0

		for j := i - period; j < i; j++ {
			typicalPrice := (high[j] + low[j] + close[j]) / 3
			moneyFlow := typicalPrice * volume[j]

			if close[j] > close[j-1] {
				sumMFVPlus += moneyFlow
			} else if close[j] < close[j-1] {
				sumMFVMinus += moneyFlow
			}

			sumVolume += volume[j]
		}

		cmfValue := (sumMFVPlus - sumMFVMinus) / sumVolume
		cmf = append(cmf, cmfValue)
	}

	return cmf
}

func main() {
	// Sample data
	high := []float64{10, 11, 12, 13, 14, 15}
	low := []float64{8, 9, 10, 11, 12, 13}
	close := []float64{9, 10, 11, 12, 13, 14}
	volume := []float64{1000, 1200, 1500, 1300, 1400, 1600}

	period := 3
	cmf := calculateCMF(high, low, close, volume, period)

	fmt.Println("Chaikin Money Flow (CMF):", cmf)
}


In this code snippet, the calculateCMF function calculates the CMF values based on the provided data and a specified period. The main function demonstrates how to use this function with sample data. You can adjust the data and period value to compute CMF for different scenarios.