Money flow
Shows the global trend through capital flow in the asset, identifies the market bottom and peak👇
How money flow works: ➡️Watch on YouTube ➡️Watch on VK
How to trade using money flow: ➡️Watch on YouTube ➡️Watch on VK
Money flow indication on the chart
You need to analyze the money supply to understand the intensity with which funds are invested in and withdrawn from an asset, but to do that you need to see the global trend.
The standard indicator shows only local money impulses, not the bigger picture, which is why many traders lose money by buying at the moment when money is leaving the asset!
We improved money flow and made it as a smooth line that smooths out short-term fluctuations and focuses specifically on global flows to identify stable trends set by large players:
Flow is rising↗️ - money is coming into the asset, the trend is bullish
Flow is falling↘️ - money is leaving the asset, the trend is bearish
Green zone - market peak
Red zone - market bottom
Point on the flow⚪️ - trend reversal point
You can set up an automatic alert for a money flow trend change and receive notifications in TradingView or Telegram, fully automating your analysis!
Using money flow in trading
Price always follows the money supply, so money flow best shows the global trend to follow!
When money flows into the asset↗️, the flow is moving up, and the price is rising too - look for buy trades
When money are withdrawn from the asset↘️, the flow is moving down, and the price is falling too - look for sell trades
The best time to build spot positions is at the market bottom (lows of the red zone)
The best time to sell is at the market peak (highs of the green zone)
If money flow is rising, shorting against big players is dangerous - filter out false signals against the trend
First of all, try the simplest money flow trading strategy from the indicator developer
Money come into the asset↗️ - the price rises!
Money leave the asset↘️ - the price falls!
In the example, we see how money flow moved into the red zone and began to form points⚪️ - they indicate that the bottom has been reached and a reversal is being attempted.
A flow reversal after one or several points is one of the most accurate ways to understand the established trend.
Money flow is ideal for investment strategies - on higher timeframes, you can pinpoint the global market bottom very accurately and start building a position in parts when reversal points appear
How to trade using money flow
We use signals and money flow:
-when the price exited the red bottom of money flow and started to rise, we wait for signals BUY in the direction of the rise and open a long
-when the price passed the green peak of money flow and started to fall, we wait for signals SELL in the direction of the decline and open a short
💡It works best as a trend continuation - always watch the direction of the flow
💡Experienced traders can enter trades earlier or build positions in parts
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