> 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/trend-ribbon.md).

# Trend ribbon

<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 the trend ribbon works:
<br>➡️<a href="https://youtu.be/L6aw7Nk1raE">Watch on YouTube</a>
<br>➡️<a href="https://vk.com/video-228172732_456239175">Watch on VK</a></td><td><a href="/files/6bd7c3a6ca345515a0facdb097911a954bda93db">/files/6bd7c3a6ca345515a0facdb097911a954bda93db</a></td></tr><tr><td><p>How to trade using the trend ribbon:</p><p>➡️<a href="https://youtu.be/JFgoDdSWdBY">Watch on YouTube</a></p><p>➡️<a href="https://vk.com/video-228172732_456239183">Watch on VK</a></p></td><td><a href="/files/75fe6f2289a838342aeba0d71e7b587498efc357">/files/75fe6f2289a838342aeba0d71e7b587498efc357</a></td></tr></tbody></table>

## Trend ribbon indicator on the chart

The trend ribbon shows price waves, smooths market fluctuations and false price movements very well to highlight only significant reversals.

<figure><img src="/files/5617ddbfb8557b36878ba139862ad3ddb9e0fdb5" alt=""><figcaption></figcaption></figure>

It works very simply; it can be either green or red:

* <mark style="color:green;">**Green ribbon**</mark> — upward wave
* <mark style="color:red;">**Red ribbon**</mark> — downward wave
* The ribbon changes color at key points, signaling a possible price reversal

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

## Using the trend ribbon in trading

The trend ribbon helps accurately identify the beginning and end of the current wave and choose the best entry and profit-taking point:

* Helps instantly see the short-term trend and price direction without the need for analysis, while eliminating minor market noise that can be misleading
* For buying - the trend is upward, the ribbon is in the lower part, the moment it changes color from <mark style="color:red;">**red**</mark> to <mark style="color:green;">**green**</mark> - the optimal time to build a position
* For selling - the trend is downward, the ribbon is in the upper part, the moment it changes color from <mark style="color:green;">**green**</mark> to <mark style="color:red;">**red**</mark> - the optimal time to close a position
* In a sideways market, the trend ribbon works great in both directions - wait until it reaches an extreme and the color starts to change

{% hint style="success" %}
First, try the simplest [trading strategy using the trend ribbon](broken://pages/0e079cf820f867cc577b738bbebf9c43e290c49b#strategiya-lenta-trenda) from the indicator developer
{% endhint %}

{% tabs %}
{% tab title="Wave change to long" %}

<figure><img src="/files/c2749ec6d8f74a3d266e75f3dd5da4a00ed82ead" alt=""><figcaption></figcaption></figure>

In the example, we see how during a <mark style="color:green;">**bullish trend**</mark> the ribbon returned to <mark style="color:green;">**green**</mark> - this is the best moment to enter a trade in continuation of the rise.
{% endtab %}

{% tab title="Wave change to short" %}

<figure><img src="/files/0f0646f028de803aac29bb6679832d305e121e69" alt=""><figcaption></figcaption></figure>

In the example, we see how during a <mark style="color:red;">**bearish trend**</mark> the ribbon returned to <mark style="color:red;">**red**</mark> - this is the best moment to enter a trade in continuation of the decline.
{% endtab %}
{% endtabs %}

## How to trade using the trend ribbon

<div align="left"><figure><img src="/files/bfe20008ab5b8d490550955371698c8c7a193169" alt="" width="548"><figcaption><p>An example of trading a signal after a trend change using the ribbon</p></figcaption></figure></div>

We use signals and **the signature trend ribbon**:

\- when the trend ribbon turns <mark style="color:green;">**green**</mark> in continuation of a bullish trend, we wait for a signal <mark style="color:green;">**BUY**</mark> and open <mark style="color:green;">**long**</mark>

\- when the trend ribbon turns <mark style="color:red;">**red**</mark> in continuation of a bearish trend, we wait for a signal <mark style="color:red;">**SELL**</mark> and open <mark style="color:red;">**short**</mark>

💡Works best in trend continuation and sideways markets on higher timeframes

💡Experienced traders can enter trades earlier, without waiting for a signal

## Advanced trend trading strategy

<div align="left"><figure><img src="/files/2f8650d9f68fa57e085671a2c9dc94477dceac7f" alt="" width="563"><figcaption><p>An example of how money flow signals work with trend ribbons, momentum, and overbought conditions</p></figcaption></figure></div>

We use signals and the full set of trend indicators:

1\) determine the global trend by the direction of [money flow](/faq-en/faq-midas-down/money-flow.md), wait for the trend ribbon to reverse in continuation of the trend

2\) additionally confirm the signal with a reversal of [momentum](/faq-en/faq-midas-down/price-momentum.md) and the exit of [oscillators](/faq-en/faq-midas-down/overheated-by-6-oscillators.md) into overbought conditions

3\) we get a signal <mark style="color:green;">**BUY/**</mark><mark style="color:red;">**SELL**</mark> and open a trade in the direction of the trend

💡Works best in trend continuation and sideways markets on higher timeframes

💡Experienced traders can enter trades earlier, without waiting for a signal

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