This script allows customization of CMF . It also includes all the improvements made by Twiggs .
Regular CMF does not take price gaps into account as you can see in the chart below. True range fixes this issue, as done in Twiggs ( TMF ).
More info here: http://www.incrediblecharts.com/indicato...
- You can change the effect of by setting exponent . 0 to 10 reduces the effect and 10+ increases it. In exchanges with too much wash trading, you may want to reduce effect.
- You can factor in price in CMF . It gives you a slightly different results. See my x price (VxP) indicator for why it might be useful.
- The range can be changed to percentage (similar to )
PS: I do not recommend using CMF in today's Crypto markets. Chaikin uses the same multiplier in CMF and Line (ADL). ADL is a totally broken indicator for BTC . If you look at the period after ATH (chart below), you will notice that ADL keeps increasing implying accumulation. While it is clear that there was distribution going on. The reason might be the artificially inflated prices in Crypto that is achieved by the help of bots and having "certain" exchanges as a price reference. So, my reasoning is that if ADL is a broken indicator, so should be CMF . CMF diverges from BTC price frequently. This is a double edged sword IMO . Still CMF is a much better indicator than ADL because it works relative to prior periods which covers some of its flaws.
Note for super nerds: Twiggs includes true range and Welles Wilder's Moving Average (WWMA). I have seen some other scripts using their own calculations for WWMA which is not efficient. WWMA is equal to built-in RMA/SMMA which is equal to with length 2x-1.
Hi, the multiplier assumes that the closing price will take into account the time spent above or below the close, and so the money flow, which in case of spikes, is wrong... going to the lower TF, while keeping the closing price from the main TF could help ? Some traders like David Paul reject all volume indicators, i find it very hard to deal with. Also the idea to use unusual TF like 45 mn is interesting, to avoid cyclical noise.