CMF and bearish divergence example

Hello readers,

Noticed this just now. It's a damn shame.

Well, consider this a textbook example of bearish divergence on the CMF indicator.

The CMF is calculated as such:

1. Find the Money Flow Multiplier
[(Close - Low) - (High - Close)] /(High - Low) = Money Flow Multiplier

2. Calculate Money Flow Volume
Money Flow Multiplier x Volume for the Period = Money Flow Volume

3. Calculate The CMF
21 Period Sum of Money Flow Volume / 21 Period Sum of Volume = 21 Period CMF

So the price was going higher, but less money was flowing into it. The price was increasing parabolically and, well, the CMF sure wasn't! If you saw this happening, you would have made a fortune. Unfortunately, my strategy for most of the year completely ignored the CMF. I still don't use it, but it's good to get as much information as possible and this is just more information. Next time, I'll be checking it periodically.

-YoungShkreli