Originally posted by Michael Hodges. For the full review and download click here
What Is Twiggs Money Flow Indicator
The TMF is yet another price/volume oscillator claiming to have solved the problems faced by other indicators. These problems are the effects of extreme data indicators, their susceptibility to false signals and chart anomalies. The indicator is based on Chaiken’s Money Flow and utilizes volume as a measure of market conviction. It seeks to weed out false signals and smooth the signal line created by CMF. Chaiken’s is based on the Accumulation/Distribution line and simple moving averages. This methodology does not take gaps into account and can provide false signals, especially when extreme data falls out of the sample period.
My Last Word On Twigg’s Money Flow
This is an indicator that I will be investigating further. I am not going to start using it but I would like to know more about it and how it is used to generate signals. At this time I think it sucks more than it doesn’t suck but I am not discounting it completely. As a long term indicator I don’t see the use, I have many other tools that are more reliable. As a short term indicator, if I can learn to read it, it may have some use in binary options.