| Twiggs Money Flow (TMF) is a technical indicator that measures an asset's buying and selling pressure. Colin Twiggs developed it to improve the Chaikin Money Flow (CMF) indicator. One of the improvements over the CMF is that the Twiggs Money Flow uses a smoothing algorithm to reduce the impact of false signals. It also considers the closing price of the current period rather than just the typical price used in the CMF calculation. The indicator value oscillates around a zero line, with positive values indicating buying pressure and negative values indicating selling pressure. The Twiggs Money Flow is often used to identify potential trend reversals and confirm existing trends. When the TMF reaches overbought or oversold conditions, it may signal a likely change in trend. Traders may also look for divergences between the TMF and the asset price as potential buy or sell signals. |
