Twiggs Money Flow Index
- Indicators
- eSoftrade
- Version: 2.0
- Updated: 7 November 2021
- Activations: 5
Twiggs Money Flow Index was created by Collin Twiggs. It is derived from Chaikin Money Flow Index but uses true ranges instead of highs minus lows to prevent spikes due to gaps. It is also using a smoothing exponential moving average to prevent spikes in volumes to alter results. The exponential moving average is the one described by Welles Wilder for many of his indicators.
When Twiggs Money Flow Index is above 0, players are accumulating and thus prices are subject to move higher. When Twiggs Money Flow Index is below 0, players are distributing and prices are more subject to move lower.
Divergences of Twiggs Money Flow Index indicator with prices give also good signals.