Price is rising. Are the closes getting stronger too?

A rising price leaves another question open: have the busier sessions finished near the top or bottom of their daily ranges?

Chaikin Money Flow (CMF) is a volume-weighted indicator of where prices close within their high–low ranges. Here, TSLA rebounds from the late-July low while CMF stays negative: rising prices and strong closing positions are different measurements.

Use CMF to look beyond the candle color

Each bar gets a score from −1 at its low to +1 at its high, with zero at the midpoint. CMF multiplies that score by volume, adds the results for the latest 20 bars, then divides by those bars’ total volume. Above zero means the volume-weighted balance favors upper-half closes; below zero favors lower-half closes.

That matters because a teal candle can still finish in the lower half of its full range. It closed above its open, but well below the day’s high. CMF can count that as a negative contribution despite the teal body.

Read the rally with both panels

In August, CMF eventually moves above zero during the recovery. The volume-weighted balance now favors upper-half closes. In September it turns negative again, even though price remains above its late-July low.

Use CMF when you want context about how a rally or pullback has been closing, especially on busier days. Keep price alongside it: a negative CMF reading describes the recent balance of closes, not a requirement that price be falling. It estimates pressure rather than literal cash entering or leaving the stock.

Try it

Compare the July-to-August recovery with CMF. Then inspect a completed teal candle with a long upper wick: is its close above the open but below the high–low midpoint?
Follow Investrade for more Chart Basics.

For educational purposes only. Securities shown are illustrations, not recommendations to buy or sell. Past performance does not guarantee future results. Investing involves risk, including loss of principal.