CMF provides valuable insights into market sentiment by analyzing the flow of money into or out of an asset. Traders use it to confirm bullish or bearish trends and avoid false breakouts. A consistently high CMF value suggests sustained accumulation, while a low or negative CMF may signal distribution. Understanding CMF can improve decision-making by validating price movements with volume trends. Combining CMF with other indicators enhances the reliability of trading signals. Use CMF in conjunction with moving averages or trend lines to confirm market direction.