## Identification of the trend ribbon on the chart
The trend ribbon shows price waves, smoothing out market fluctuations and false price moves very well so that only significant reversals stand out.
It works very simply: it can be either green or red:
* **Green ribbon** — upward wave
* **Red ribbon** — downward wave
* The ribbon changes color at key points, signaling a possible price reversal
{% hint style="info" %}
You can set up [an automatic alert](https://faq.midas-club.com/faq-en/alert-setup) 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 determine the start and end of the current wave and choose the best entry point and profit-taking point:
* It helps you instantly see the short-term trend and price direction without needing analysis, while removing minor market noise that can be misleading
* For buying - the trend is upward, the ribbon is in the lower part, the moment of color change from **red** to **green** - the optimal time to enter a position
* For selling - the trend is downward, the ribbon is in the upper part, the moment of color change from **green** to **red** - the optimal time to close a position
* In a sideways market, the trend ribbon works great both ways - wait until it reaches an extreme and the color starts to change
{% hint style="success" %}
First, try the simplest [trading strategy based on the trend ribbon](https://faq.midas-club.com/faq-en/simple-strategies#strategiya-lenta-trenda) from the indicator developer
{% endhint %}
{% tabs %}
{% tab title="Wave change to long" %}
In the example, we can see how during **a bullish trend** the ribbon returned to **green** - this is the best moment to enter a trade in continuation of the rise.
{% endtab %}
{% tab title="Wave change to short" %}
In the example, we can see how during **a bearish trend** the ribbon returned to **red** - this is the best moment to enter a trade in continuation of the decline.
{% endtab %}
{% endtabs %}
