Twiggs money flow indicator is nothing but a modified version of the Chaikin Money Flow indicator. Twiggs money flow is primarily used for trend confirmation when the price is breaking out or showing trend weakness when the divergence is building
How to use Twiggs Money Flow?
Twiggs Money Flow signals accumulation if above zero, while negative values signal distribution. The higher the reading (above or below zero), the stronger the signal.
- Go long if a breakout above resistance is supported by Twiggs Money Flow above zero.
- Go short if a breakout below support is confirmed by negative Twiggs Money Flow.
Divergences also provide good signals:
- Go long on a bullish divergence.
- Go short on a bearish divergence.
The strongest confirmation of the above signals is when either:
- Twiggs Money Flow is trending upwards and completes a trough without crossing below zero, or
- Twiggs Money Flow trends downwards and completes a peak without crossing above zero.
Download Twiggs Money Flow Indicator for Amibroker
_SECTION_BEGIN("Twiggs Money Flow"); /* Twiggs Money Flow is a derivation of Chaikin Money Flow indicator, which is in turn derived from the Accumulation Distribution line. However, Twiggs Money Flow makes two basic improvements to the Chaikin Money Flow formula: 1-To solve the problem with gaps, Twiggs Money Flow uses true range, rather than daily Highs minus Lows. 2-And, rather than a simple-moving-average-type formula, Twiggs Money Flow applies exponential smoothing, using the method employed by Welles Wilder for many of his indicators. */ periods = Param( "Periods", 21, 5, 200, 1 ); color = ParamColor("Color",colorYellow); TRH=Max(Ref(C,-1),H); TRL=Min(Ref(C,-1),L); TR=TRH-TRL; ADV=V*((C-TRL)-(TRH-C))/ IIf(TR==0,9999999,TR); WV=V+(Ref(V,-1)*0); SmV= Wilders(WV,periods); SmA= Wilders(ADV,periods); TMF= IIf(SmV==0,0,SmA/SmV); Plot( TMF, _DEFAULT_NAME(), color,styleThick ); _SECTION_END();
One Reply to “21 day Twiggs Money AFL Code for Amibroker”
rajandran,thank you so muchsri