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Twiggs Money Flow - A Handy Volume Indicator for TradingView

· 3 min read
Pineify Team
Pineify Team

The Twiggs Money Flow (TMF) is one of those indicators that actually makes sense when you look at it. It shows whether money is flowing into or out of a stock by combining price movement with trading volume. What's cool is it uses the true price range (accounting for gaps) rather than just the high-low range.

Think of it like a volume-weighted measure of where the price closed within its daily range. If the stock keeps closing near the top of its range on high volume, TMF goes up. Closing near the bottom with heavy volume? TMF drops. Simple as that.

Twiggs Money Flow on a TradingView chart

What Does Twiggs Money Flow Actually Show?​

TMF gives you a quick read on whether buyers or sellers are in control. Here's the breakdown:

  • The line moves above and below zero
  • Above zero = more buying pressure
  • Below zero = more selling pressure
  • The higher/lower it goes, the stronger the move
  • It smooths out the noise using Wilder's moving average

The real value comes when you see it disagreeing with price - that's when you get those "aha" moments before reversals.

Adding TMF to Your TradingView Chart​

Adding indicators in Pineify

Here's the easiest way to get it on your charts:

  1. Grab the code from Pineify (they've got it ready to go)
  2. Paste into TradingView's Pine Editor
  3. Hit save and add to chart

No need to mess with the math unless you want to tweak it. The default 21-period setting works fine for most cases.

How to Actually Use It When Trading​

TMF works best when you combine it with what price is doing:

  • Basic use: Go long when it crosses above zero, exit when it drops below
  • For reversals: Watch for when price makes new highs but TMF doesn't (or vice versa)
  • Trend confirmation: In strong trends, TMF will stay consistently above/below zero

The sweet spot is using it to confirm what price is telling you, not as a standalone signal. Pair it with support/resistance or moving averages and you've got something useful.

Settings That Actually Work​

Don't overcomplicate it:

  • 21 periods is the sweet spot for most traders
  • On faster charts (1m-15m), try 14 periods
  • For daily/weekly charts, 30 periods smooths it out nicely
  • The levels at +0.2 and -0.2 often act as overbought/oversold zones

Testing Your Strategy​

Before going live, try:

  1. Writing simple rules like "buy when TMF > 0, sell when < 0"
  2. Adding filters like "only take longs when price is above 200MA"
  3. Checking how it performed on historical data
  4. Adjusting position sizes based on how strong TMF is moving

The key is starting simple and only adding complexity if it actually helps.

Final Thoughts​

TMF is one of those rare indicators that gives you actual insight into what's happening beneath the price action. It won't predict the future, but it does help you see when the buying or selling pressure is changing.

Best ways to use it:

  • As a secondary confirmation to your main strategy
  • To spot potential reversals when price and TMF disagree
  • To gauge the strength behind breakouts

Like any tool, it works better when you understand what it's actually measuring. Give it some screen time and see how it fits with how you trade.