Twiggs Money Flow
Twiggs Money Flow by Colin Twiggs is a variation on the Chaikin Money Flow Index. It uses True Range and volume. Adjustable guides are given to fine tune the signals. The user may change method (EMA), period lengths and guide values. This indicator’s definition is further expressed in the condensed code given in the calculation below.
How To Trade Using Twiggs Money Flow
Adjust the guides allowing approximatly 30 percent of the total range above the top guide and 30 percent below the bottom guide. If the TMF peaks above the top guide a sell signal will be generated. Conversely, if the TMF troughs below the bottom guide a buy signal will be given.
How To Access in MotiveWave
Go to the top menu, choose Study>Oscillators>Twiggs Money Flow
or go to the top menu, choose Add Study, start typing in this study name until you see it appear in the list, click on the study name, click OK.
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//method = moving average, user defined, default is EMA
//period = user defined, default is 21
//ma = moving average
//trh = true high
//trl = true low
//prev = previous, index = current bar number
//LT = lessThan, MT = moreThan
lastClose = price[index-1]; trh = max(high, lastClose); trl = min(low, lastClose); ad = ((close - trl)- (trh - close)) / (trh - trl) * volume; smoothAd =ma(method, index, period, ad); smoothVol = ma(method, index, period, volume); Plot: TMF = smoothAd / smoothVol; //Signals prevTmf = TMF[index-1]; highSell = tmf for last sell signal, reset to max_negative at each buy signal; lowBuy = tmf for last buy signal, reset to max_positive at each sell signal; sell = (tmf MT topGuide) AND (prevTmf MT tmf) AND (tmf MT highSell); buy = (tmf LT bottomGuide AND prevTmf LT tmf) AND (tmf LT lowBuy);