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walterw

Twiggs Money Flow

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Since I started to study volume more seriously, I came across a great amount of alternatives on how to profit from this type of analisis. One great indicator that I came to is the "Twiggs Money Flow" , developed by Mr Collin Twiggs and shared by him freely... first you must understand the origin on the MFI (Money Flow Index), here is a nice explanation of it Money Flow Index (MFI) - StockCharts.com , Mr Twiggs did a very nice upgrade to the indicator wich he explains here Incredible Charts: Twiggs Money Flow the indicator was translated to TS code by Galaad at TS forum, and I did some visual touches to make it more easy to read and changed the default setting from 21 to 5 (an input I find more adapted and usefull for daytrading) , I will open a diferent thread on the usage, I find this one a true gem if its properly used... it can make so clean and easy volume readings... enjoy cheers Walter.

TWIGGS MONEY FLOW 2.ELD

5aa70dcfee173_twiggsmoneyflow.thumb.png.8d516c436fdd3e763ad6116fe5b7626b.png

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hello Walter. sharing your enthusiam for the TMF indicator, but puzzled as to its construction. mr Twiggs uses the following criteria:

 

True Range High (TRH) is the greater of:

 

High [today] and

Closing price [yesterday]

True Range Low (TRL) is the lesser of:

 

Low [today] and

Closing price [yesterday]

 

which he then calls the AD & incorporates into a formula. but how can one translate the above into MS language?

 

I do believe the formula is not as simple as might appear. you must have solved the problem because you took it one step further, substiting 5 for 21 where applicable. I have done this myself several times, because daytrading is what it's all about!

 

regards ... amory

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Hi Amory, I am not that familiar with MS... I know they have some limitations in terms of language compared to TS... I recall using a very old version 10 years ago and they could do a salad of indicators from indicators that would only be on the program but not be able to create functions from scratch... from there on I turned to TS where flexibility was tremendous.... actually I am on a forced diet, anti TS adiction and using very simple charts from my DOM... hope you can get that TMF working, its a great indicator in terms of volume and I enjoyed to see divergences on keltner extremes make great setups... should I suggest using this indicator for setup purposes only and combining CCI for specific timing purposes... cheers Walter.

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Hi walterw! Great indicator. I'm modified your code with own mov average. Look at this. I want creat indicator with automatically indicate divergence and convergence. But, need more smooth. Have you idea on this theme?

thx!

mod.thumb.JPG.63dc8894aed965f60d1b231a0dc3d7ff.JPG

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I see you did some smoothing... should you consider having an input apart for the smoothing factor...

in order to find divergences you need to program pivot recognition...unfortunately I am not good on that... cheers Walter.

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Hi walterw! Great indicator. I'm modified your code with own mov average. Look at this. I want creat indicator with automatically indicate divergence and convergence. But, need more smooth. Have you idea on this theme?

thx!

 

Any luck on the divergence indicator? I'm not even semi programing able but have been looking for a decent divergence indicator myself with no luck.

 

Thanks

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Any luck on the divergence indicator? I'm not even semi programing able but have been looking for a decent divergence indicator myself with no luck.

 

Thanks

 

 

Normally for that you need to detect pivots automatically, some kind of fractal or crossovers that determine pivots, after that you compare pivot levels and get the divergence plotted, now normally that will happen various bars later from the fact, as you need a pivot confirmed to get your divergence plotted... best deal is training your eye on real time information... cheers Walter.

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Normally for that you need to detect pivots automatically, some kind of fractal or crossovers that determine pivots, after that you compare pivot levels and get the divergence plotted, now normally that will happen various bars later from the fact, as you need a pivot confirmed to get your divergence plotted... best deal is training your eye on real time information... cheers Walter.

 

Thanks for the explanation, I never thought of that delay issue. I spot divergence fairly well and trained by eye, so I'll stick with what works. :)

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thanks walterw, i like it on my charts, quick & clean divergences.

 

did you also notice that it has a slight upward bias? at least it looks like this from the up & down distribution of the indicator.

 

did some searching through the code, but nothing suspicious found ;-))

 

cheers,

cosmic

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thanks walterw, i like it on my charts, quick & clean divergences.

 

did you also notice that it has a slight upward bias? at least it looks like this from the up & down distribution of the indicator.

 

did some searching through the code, but nothing suspicious found ;-))

 

cheers,

cosmic

 

 

most volume based oscillators have more + presence, thats why + or - its not the issue as the divergences you can capitalize on... watch for strong momentum conditions may get tricky... works very good on cycle days... cheers Walter.

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thanks walterw,

if you like to have more up & dn consistency, you can recenter it around a longer term ma, divergences then also become more dramatic if you plot it as a histogram. can post the eld if interested.

cheers, cosmic

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Cosmic,

 

someone modified the code to smooth it out a bit. Is your code smoothed like that. I'd be interested in your version. Can you elaborate on what you mean by the divergences being more elaborate? Whould this be for daytrading?

 

David

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Cosmic,

 

someone modified the code to smooth it out a bit. Is your code smoothed like that. I'd be interested in your version. Can you elaborate on what you mean by the divergences being more elaborate? Whould this be for daytrading?

 

David

 

Thanks for the interest David,

i have attached an ELD with the code of my modifications.

Also I changed the smoothing formula to Weighted MAs, like that a bit more.

Since the most valuable part of the TMF are the divergences, I plot the recentered osc as a histogram, this makes it easier to read, a least for me.

 

Good weekend,

cosmic

TMF_OSC.ELD

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COSMIC...all i can say is wow!! this is now my favorite indicator.

i have been watching it on the ER2 89 tick chart and i look for the zero line crossover to look for entries at resistance and support and divergence from MACD/stochastics, and also 50/62 fib retracements for the day.

As the indicator approaches the zero line crossover, i can swing trade it.

Super indicator!! thanks cosmic...

this is my first post on this site. This is saying a lot because i usually do not comment on these forums. This indicator is great!!

 

dr ho.

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Thank you very much for your comments DrHo.

Glad you find it useful for your trading.

 

I am open to tweak it further if you have any other ideas...

 

Good trading,

cosmic

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Walter/cosmic: any input as to the efficacy of this indicator when used with time, tick, volume or range bar charts? IOW, does it perform better on one of them compared to the others/

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Walter/cosmic: any input as to the efficacy of this indicator when used with time, tick, volume or range bar charts? IOW, does it perform better on one of them compared to the others/

 

tick and time will make it...

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I love this indicator I've been using this for a very long time and I can say it is by far a very good indicator for telling when in a overbought or oversold state. I picked the top of Oil and the turn on the Dow with this. Using the original formula.

 

It is awesome. Zero line cross is a sure bet.

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Hi all.

 

Looking at this thread It seems that it's been coded in Easy Lanquage, and Ninja Trader has it, but no luck finding it for CQG so far.

 

Has anyone got this for CQG, or know anyone that might be able to code it?

 

Thanks

Papa.

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I've got the following in 'pseudo' code. There's an error in it and I don't know what. I'm not sure whether I can create new Variables like 'TRH' on the fly in CQG (or if ':=' is even what that means!!) Also, I'm just using CQG's exponential moving average which i suppose is going to be different to the Wilder one Colin Twiggs has designed his indicator using. There must be better CQG coders out there. Please help!!!

 

 

 

TRH:= Maximum( High(@), Close(@)[-1])

TRL:= Minimum( Low(@), Close(@)[-1])

 

TAD:= ((Close(@)-TRL)-(TRH- Close(@)))/((TRH-TRL)/ Vol(@))

 

adEMA:= MA(TAD,Exp,period)

vEMA:= MA(Vol(@),Exp,period)

 

TMF:= adEMA/vEMA

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