Twiggs Money Flow - Indicator Formula
Updated
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 ]
