# 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>Short video lesson 15 minutes:<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></tbody></table>

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You need to analyze the money supply to understand the intensity with which funds are being invested into and withdrawn from an asset, but for that you need to see the global trend.

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

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

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:

* <mark style="color:green;">**Flow is rising**</mark>↗️ - money is entering 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**⚪️ - place of trend reversal

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

## 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* When money **are withdrawn from the asset**↘️, the flow goes down, falls and the price - look for sell trades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 <mark style="color:red;">**market bottom**</mark> (lows of the red zone)
* The best moment to sell is at the <mark style="color:green;">**market peak**</mark> (highs of the green zone)
* If the money flow is rising, shorting against large players is dangerous - filter false signals against the trend

{% hint style="success" %}
First of all, try the simplest [trading strategy based on money flow](/faq-en/simple-strategies.md#strategiya-denezhnyi-potok) from the indicator developer
{% endhint %}

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

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

Money **is coming into the asset↗️** - the price is rising!
{% endtab %}

{% tab title="Flow decline" %}

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

Money **are leaving the asset↘️** - the price is falling!
{% endtab %}

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

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

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

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


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