Volume Flow Confluence

11월 10일

Volume Flow Confluence (CMF-KVO Integration)


Core Function:


The Volume Flow Confluence Indicator combines two volume-analysis methods: Chaikin Money Flow (CMF) and the Klinger Volume Oscillator (KVO). It displays a histogram only when both indicators align in their respective signals.

Signal States:


• Green Bars: CMF is positive (> 0) and KVO is above its signal line
• Red Bars: CMF is negative (< 0) and KVO is below its signal line
• No Bars: When indicators disagree

Technical Components:


Chaikin Money Flow (CMF):
Measures the relationship between volume and price location within the trading range:
• Calculates money flow volume using close position relative to high/low range
• Aggregates and normalizes over specified period
• Default period: 20

Klinger Volume Oscillator (KVO):
Evaluates volume in relation to price movement:
• Tracks trend changes using HLC3
• Applies volume force calculation
• Uses two EMAs (34/55) with a signal line (13)

Practical Applications:


1. Signal Identification
- New colored bars after blank periods show new agreement between indicators
- Color intensity differentiates new signals from continuations
- Blank spaces indicate lack of agreement

2. Trend Analysis
- Consecutive colored bars show continued indicator agreement
- Transitions between colors or to blank spaces show changing conditions
- Can be used alongside other technical analysis tools

3. Risk Considerations
- Signals are not predictive of future price movement
- Should be used as one of multiple analysis tools
- Effectiveness may vary across different markets and timeframes

Technical Specifications:

Core Algorithm

CMF = Σ(((C - L) - (H - C))/(H - L) × V)n / Σ(V)n
KVO = EMA(VF, 34) - EMA(VF, 55)
Where VF = V × |2(dm/cm) - 1| × sign(Δhlc3)
Signal Line = EMA(KVO, 13)

Signal Logic
Long: CMF > 0 AND KVO > Signal
Short: CMF < 0 AND KVO < Signal
Neutral: All other conditions
Parameters

CMF Length = 20
KVO Fast = 34
KVO Slow = 55
KVO Signal = 13
Volume = Regular/Actual Volume

Data Requirements

Price Data: OHLC
Volume Data: Required
Minimum History: 55 bars
Recommended Timeframe: ≥ 1H

Credits:

• Marc Chaikin - Original CMF development
• Stephen Klinger - Original KVO development
• Alex Orekhov (everget) - CMF script implementation
• nj_guy72 - KVO script implementation