> For the complete documentation index, see [llms.txt](https://faq.midas-club.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://faq.midas-club.com/faq-en/faq-midas-down/money-flow.md).

# Money flow

<table data-card-size="large" data-view="cards"><thead><tr><th></th><th data-hidden data-card-cover data-type="image">Cover image</th></tr></thead><tbody><tr><td>How money flow works:
<br>➡️<a href="https://youtu.be/XlaSoKME4S0">Watch on YouTube</a>
<br>➡️<a href="https://vk.ru/video-228172732_456239173">Watch on VK</a></td><td><a href="/files/a2293ec508adcc568bee3125ee62df8ee3a12c5b">/files/a2293ec508adcc568bee3125ee62df8ee3a12c5b</a></td></tr><tr><td>How to trade using money flow:
<br>➡️<a href="https://youtu.be/DEzIk6V8sDg">Watch on YouTube</a>
<br>➡️<a href="https://vk.com/video-228172732_456239174">Watch on VK</a></td><td><a href="/files/be574244786cd46db9634e1385b8c1fe3ef4e86f">/files/be574244786cd46db9634e1385b8c1fe3ef4e86f</a></td></tr></tbody></table>

## 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You need to analyze the money supply to understand the intensity with which funds are invested in and withdrawn from an asset, but to do that you need to see the global trend.

{% hint style="danger" %}
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!
{% endhint %}

<figure><img src="/files/8e5e618836bc4d1b2c5d47a1e6360248756100be" alt=""><figcaption></figcaption></figure>

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:

* <mark style="color:green;">**Flow is rising**</mark>↗️ - money is coming into the asset, the trend is bullish
* <mark style="color:red;">**Flow is falling**</mark>↘️ - money is leaving the asset, the trend is bearish
* <mark style="color:green;">**Green zone**</mark> - market peak
* <mark style="color:red;">**Red zone**</mark> - market bottom
* **Point on the flow**⚪️ - trend reversal point

{% hint style="info" %}
You can set up [an automatic alert](/faq-en/alert-setup.md) for a money flow trend change and receive notifications in TradingView or Telegram, fully automating your analysis!
{% endhint %}

## 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 <mark style="color:red;">**market bottom**</mark> (lows of the red zone)
* The best time to sell is at the <mark style="color:green;">**market peak**</mark> (highs of the green zone)
* If money flow is rising, shorting against big players is dangerous - filter out false signals against the trend

{% hint style="success" %}
First of all, try the simplest [money flow trading strategy](broken://pages/0e079cf820f867cc577b738bbebf9c43e290c49b#strategiya-denezhnyi-potok) from the indicator developer
{% endhint %}

{% tabs %}
{% tab title="Flow growth" %}

<figure><img src="/files/f0ac26901a1d9e7fd26a1a99a02c3039dec7a08e" alt=""><figcaption></figcaption></figure>

Money **come into the asset↗️** - the price rises!
{% endtab %}

{% tab title="Flow decline" %}

<figure><img src="/files/605df0e67fefbaf1081307d1df98e23a77cb5ff3" alt=""><figcaption></figcaption></figure>

Money **leave the asset↘️** - the price falls!
{% endtab %}

{% tab title="Identifying the bottom" %}

<figure><img src="/files/c86694baf5b4970f288c829d20e5dacd3c617564" alt=""><figcaption></figcaption></figure>

In the example, we see how money flow moved into the <mark style="color:red;">**red zone**</mark> 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.
{% endtab %}
{% endtabs %}

{% hint style="success" %}
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
{% endhint %}

## How to trade using money flow

<figure><img src="/files/0ca6b92b45448b4bc3b5cc35d6fa838fd48476bb" alt=""><figcaption><p>An example of trading a signal after identifying the cycle bottom using money flow</p></figcaption></figure>

We use signals and **money flow**:

-when the price exited the <mark style="color:red;">**red bottom**</mark> of money flow and started to rise, we wait for signals <mark style="color:green;">**BUY**</mark> in the direction of the rise and open <mark style="color:green;">**a long**</mark>

-when the price passed <mark style="color:green;">**the green peak**</mark> of money flow and started to fall, we wait for signals <mark style="color:red;">**SELL**</mark> in the direction of the decline and open <mark style="color:red;">**a short**</mark>

💡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

<table data-card-size="large" data-column-title-hidden data-view="cards" data-full-width="true"><thead><tr><th></th><th data-type="content-ref"></th><th data-hidden data-card-cover data-type="image">Cover image</th></tr></thead><tbody><tr><td>How to repeatedly capture <strong>small price movements and scalp with Midas</strong></td><td><a href="/pages/4f742d49098c6bc4b452e07456970aba1fdfd47a">/pages/4f742d49098c6bc4b452e07456970aba1fdfd47a</a></td><td><a href="/files/ac65d0c5d925a2e4450784eb14d80fa1afe9b55b">/files/ac65d0c5d925a2e4450784eb14d80fa1afe9b55b</a></td></tr><tr><td>How to capture powerful intraday moves and not miss the last train</td><td><a href="/pages/b61b01b27f1eee36e0a47a5e95eab39c0df0dced">/pages/b61b01b27f1eee36e0a47a5e95eab39c0df0dced</a></td><td><a href="/files/0f795ffc7aaed3b45e096e4d7fda85208f3acba5">/files/0f795ffc7aaed3b45e096e4d7fda85208f3acba5</a></td></tr><tr><td>How not to chase every candle but take a clear piece of trend movement</td><td><a href="/pages/111bcb4c17c7a71ec9b5db950abe29a486104678">/pages/111bcb4c17c7a71ec9b5db950abe29a486104678</a></td><td><a href="/files/f1d8a1aef8cb6d4dbbc9cdae4b35dc3cfaf0a2f9">/files/f1d8a1aef8cb6d4dbbc9cdae4b35dc3cfaf0a2f9</a></td></tr><tr><td>How to buy back a local market bottom on higher timeframes without noise</td><td><a href="/pages/d0eecc882c19c8daf2e51fd060ad772efa7175c0">/pages/d0eecc882c19c8daf2e51fd060ad772efa7175c0</a></td><td><a href="/files/9f3d6282c643cd41c19f535967873c523c0a6ccc">/files/9f3d6282c643cd41c19f535967873c523c0a6ccc</a></td></tr></tbody></table>