Money flow
Shows the global trend through capital movement in the asset, identifies market bottoms and peaks👇
Short video lesson 15 minutes: ➡️Watch on YouTube ➡️Watch on VK
Denotation of money flow on the chart
You need to analyze the money supply to understand the intensity with which funds are being invested into and withdrawn from an asset, but for that you need to see the global trend.
The standard indicator shows only local money impulses, not the overall picture, so many traders lose money by buying at moments when money is leaving the asset!
We refined the money flow and made it as a smooth line that smooths short-term fluctuations and focuses specifically on global flows to reveal stable trends set by large players:
Flow is rising↗️ - money is entering 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⚪️ - place of trend reversal
You can set up an automatic alert to the change of trend in the money flow and receive a notification in TradingView or Telegram, fully automating your analysis!
Application of money flow in trading
Price always follows the money supply, so money flow best shows the global trend to follow!
When money is poured into the asset↗️, the flow goes up, rises and the price - look for buy trades
When money are withdrawn from the asset↘️, the flow goes down, falls and the price - look for sell trades
The best moment to accumulate positions on spot is at the market bottom (lows of the red zone)
The best moment to sell is at the market peak (highs of the green zone)
If the money flow is rising, shorting against large players is dangerous - filter false signals against the trend
First of all, try the simplest trading strategy based on money flow from the indicator developer
Money is coming into the asset↗️ - the price is rising!
Money are leaving the asset↘️ - the price is falling!
In the example we see how the money flow went into the red zone and began to form points⚪️ - they indicate reaching the bottom and an attempt to reverse.
A reversal of the flow after one or several points is one of the most precise ways to understand the formed trend.
Money flow is ideal for investment strategies - on higher timeframes you can very accurately find the global market bottom and start building a position in parts when reversal points appear
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