Volume & Flow15m / Daily CandlesComplexity: Advanced

Chaikin Money Flow (CMF) Volume Breakout

Measures institutional buying pressure (Accumulation/Distribution). Enters breakouts only when CMF crosses +0.10, confirming real money flow behind the price move.

Public & Generic Educational Strategy Notice: This strategy blueprint represents a publicly known mathematical formulation and standard technical analysis concept. Algo Software Innovations does NOT claim proprietary copyright, invention, or exclusive ownership over these formulas. You can adapt, customize, and deploy this logic to your private cloud VPS.

Mathematical Logic & Formula Formulation

CMF = Sum(((Close - Low) - (High - Close)) / (High - Low) * Volume, 20) / Sum(Volume, 20) > 0.10

Deterministic Entry Rules

Long Entry (BUY)

  • CMF(20) crosses strictly ABOVE +0.10 (Institutional Inflow).
  • Price breaks out above 10-day resistance with volume > 1.5x 20 SMA.

Short Entry (SELL)

  • CMF(20) crosses strictly BELOW -0.10 (Institutional Outflow).
  • Price breaks below 10-day support with volume > 1.5x 20 SMA.

Exit Criteria & Stop Loss Protection

Initial Stop Loss1.2% from entry price.
Target Profit3.0% - 5.0% breakout swing target.
Risk/Reward Expectancy1 : 2.5

Strategy Configuration Specs

Market Segment:NSE Midcap & Smallcap Equities
Candle Timeframe:15m / Daily Candles
Risk-to-Reward Ratio:1 : 2.5
Throttling Compliance:≤ 10 OPS Enforced
Required TA-Lib Indicators:
CMF (20)EMA (50, Close)Volume SMA (20)

Risk Management Controls

  • Position size scaled to avoid illiquid small-cap slippage.
Target Trader Profile:Stock breakout traders targeting high volume runners.
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