It does in a way. It's useful as a breakout indicator as it's affected by volume, price
and where price closes in the range for a given time period. For example if your looking at a daily chart, a candle with a close in it's upper half is going to cause a rise in TMF. It's basically the same as Chaiken Money Flow with a few little tweaks which make it better with regards to one off extremely high volume events and gaps.
This latter part is the most useful as it helps identify dogs that don't look they are doing anything, but someone has actually been accumulating on the sly. I also find it useful for identifying weakness after a big run up as you'll often see a big decline in TMF, even when price is rising.
It's not fool proof, but it's one tool I use to find spec "dogs" that someones buying for a pump. I usually use it on weekly charts, but sometimes I find some nice divergences on the daily - I just find weekly signals to be more reliable.
Charts as requested:
CZN - Was looking good and I brought in just prior to the last little run. Suffered from a ton of supply since though and not looking as nice. May need a few more weeks - if we see TMF slowly edge back up above the 0% line prior to another move I'd be looking to get back in.
View attachment 77258
DRK - Looking pretty solid actually. Starting to see some nice bullish divergence. Again, I'd keep an eye out for a break and hold of that 0% line. Looks like there's some interest here.
View attachment 77257
NOR - I've been tempted to take a position myself but haven't had the funds. Looks like a bit of battle between supply and demand at the moment. TMF has been respecting the 0% line which is a bullish sign. Might be a bit of supply to work through in the mean time as looks like there's plenty of profit takers atm.
View attachment 77256
RFT - Much the same as NOR - looks better on the daily than the weekly so I've shown that. Again, we've got respect of the 0% line which is bullish for the time being. Supply-demand battle going on again.
View attachment 77255
Hope that helps,
Cheers,
T
onwards and upwards
