Twiggs Money Flow - Indicator Formula

When the Twiggs Money Flow has a positive reading it can be viewed as a bullish opportunity and it can be taken as a sell signal.

When the Twiggs Money Flow has a negative reading it can be viewed as a bearish opportunity and it can be taken as a sell signal.

Calculation:

Twiggs Money Flow calculation could be split into several steps:

Calculate Highest High (HH) and Lowest Low (LL)

LL = minimum [ current Low or previous Close ]

HH = maximum [ current High or previous Close ]

Calculate TMF (Twiggs Money Flow)

TMF = EMA [ Volume * ( ( Close - LL ) / ( HH - LL ) * 2 - 1 ) ] / EMA [ Volume ] * 100

or by steps:

calculate range

Range = ( Close - LL ) / ( HH - LL ) * 2 - 1

or

Range = ( 2 * Close - LL - HH ) / ( HH - LL )

Calculate Range Volume (weighed by the Range volume)

RangeV = EMA [ Volume * Range ]

Calculate TMF

TMF = RangeV / EMA [ Volume ] * 100

Apply EMA to TMF as second signal line

TMF Signal Line = EMA [ TMF ]

For more information you can review the following https://www.incrediblecharts.com/indicators/twiggs_money_flow.php

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