Twiggs Money Flow: Volume-Weighted Price Position Within the Range

Summary

Twiggs Money Flow is presented as a variation of Chaikin Money Flow that combines trading volume with the closing price's position inside a range. The calculation uses the current high and low together with the prior close to define the range, then weights a close nearer the high positively and a close nearer the low negatively by volume. A moving average is applied to both the volume-weighted price-position values and volume; their ratio forms the indicator.

The provided implementation uses a default lookback of 21 periods and permits a configurable averaging method, including simple, exponential, or Wilder-style smoothing. It also displays zero and positive and negative reference levels at 0.20 and -0.20. The text explains the formula and lineage but offers no interpretation rules beyond those reference lines, empirical tests, or evidence of predictive value. Results may depend on the selected smoothing method, data quality, and the instrument's volume data; the excerpt does not discuss these limitations in depth.

Key ideas

• Twiggs Money Flow is described as a volume-based variation of Chaikin Money Flow.
• The calculation weights volume according to where the close falls within a range that includes the prior close.
• The indicator divides smoothed volume-weighted price-position values by smoothed volume.
• The averaging method can be selected from simple, exponential, or Wilder-style options.
• The implementation shows zero and positive and negative reference levels, but supplies no validation of their usefulness.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.