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Twiggs Money Flow for Amibroker (AFL)

kaiji over 16 years ago Amibroker (AFL)

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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:

To solve the problem with gaps, Twiggs Money Flow uses true range, rather than daily Highs minus Lows. 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.

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Indicator / Formula

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_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 );
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(), ParamColor("color", colorCycle ),
ParamStyle("Style") );
_SECTION_END();

5 comments

almost 16 years ago

Combined to the Gravity Center (of John Ehler for instance), the Money flow is an excellent way to determine in which direction prices will go.
Thank you for this formula.

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