> 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-pump-and-dump.md).
# FAQ 🚀Pump\&Dump
This is a specialized indicator for traders who want to catch **quick pullbacks after powerful impulse moves**.
Instead of the banal logic “arrow appeared - enter,” the script uses a more understandable market-based approach - **it first finds an abnormally strong impulse, then looks for the moment when price starts to return, gives a signal, and fully accompanies the trade.**
Simply put, the indicator works as a bundle of 3 modules:
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### **Pump and Dump Screener**
Automatically tracks sharp price moves on the chart:
* **pumps** - strong spikes upward
* **dumps** - sharp selloffs downward
Very flexibly adjustable for any market, asset, and timeframe.
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### Signal module
After an impulse is found, the indicator does not just show the fact of a pump or dump, but looks for a potential entry point into the pullback move in order to catch the reverse impulse as early as possible - according to the specified logic and filters.
When the pullback is identified, the indicator gives a signal on the chart, determines the nearest targets, the stop, and displays a position projection with a risk-to-reward ratio, and then accompanies the trade by sending alerts to the TradingView app or Telegram.
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### Auto-tester
Extended testing mode with a statistics table for the found signals on the entire available chart history immediately shows statistics of completed take-profits and stops. Useful for quickly selecting settings for an asset and timeframe, seeing how the logic behaves historically, and comparing different presets without manual fuss.
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## What the strategy is about
After powerful pumps and dumps, the market very often gives **a quick pullback - and**it is precisely these moves that Midas🚀Pump\&Dump captures:
* after sharp impulses, price often pulls back **within a few candles**, not in a few days, so they are practically impossible to track manually
* such moves often offer **a clean and understandable scenario**: there was overheating -> profit-taking began -> the pullback started
* the strategy adapts easily to the market phase:
* **in a bull market** you can look for bounces after strong selloffs
* **in a bear market** you can trade pullbacks after pumps and upward run-ups
This is especially relevant for a market with many weak, overheated, and speculative coins. The more junk impulses and chaotic run-ups there are, the more often situations appear where price first flies too far and then quickly returns back just as fast.
WHAT ARE PUMPS AND DUMPS IN SIMPLE WORDS
**This**is an indicator for finding and trading pullbacks after sharp pumps and dumps.
The script first works as a screener and finds strong impulse moves, and then as a signal bot looks for an entry point in the reverse move according to the selected logic: either right at the start of the pullback, or through a more precise bounce from a strong level.
The indicator is flexibly configurable for different coins and timeframes, helps cut out noise through filters, supports TradingView and Telegram alerts, and also provides tools for managing a position via SL, TP, and trailing.
This is a convenient tool for those who want to systematically work with fast impulses and capture pullback moves without constantly manually monitoring charts.
MAIN BENEFITS
#### 1. Finds not just a move, but a clear trading setup
Many tools either look for a trend or just draw arrows by inertia.\
Here the logic is specific: **there was strong overheating -> wait for pullback -> look for entry**.
#### 2. Suitable for quick trades
After pumps and dumps, the market often moves sharply.\
This gives the opportunity to capture the move faster than in classic medium-term scenarios.
#### 3. Flexibly adjustable for any coins and timeframes
You can adapt the script for:
* aggressive scalping
* intraday
* speculative altcoin trading
* finding rare but strong setups
#### 4. Helps reduce noise
Through filters by:
* impulse size
* move speed
* signal waiting time
* pullback depth
* candlestick confirmation
#### 5. Lets you work with the market, not against the context
In a bullish phase, you can look for favorable buys after dumps.\
In a weak market, you can focus on sells after pumps.\
The same tool can be adapted to different cycles.
#### 6. Provides alerts and automates monitoring
No need to manually monitor dozens of charts.\
The indicator finds the situation on its own and tells you when it is ready.
#### 7. Suitable for testing and optimization
The auto-tester mode lets you quickly find workable combinations:
* TF
* impulse size
* window length
* pullback depth
* signal type
WHO IT IS FOR
The indicator is especially useful for traders who:
* like fast impulse moves
* want to catch pullbacks after overheating
* trade volatile coins
* do not want to manually monitor all pumps and dumps
* are looking for a flexible tool, not a fixed “one-size-fits-all” strategy
**Midas🚀Pump\&Dump** - is not a “make money” button, not an x-multiplier generator, and not a replacement for your brain.
It helps:
* find strong market anomalies
* filter noise
* get trading scenarios faster
* systematize work with pullbacks
But if the trader:
* does not use stops
* takes excessive risk
* trades without a plan
* takes every signal in a row without context
then no indicator will save them.
This tool strengthens discipline and decision-making speed,\
but **the result always depends on risk management, setup selection quality, and the ability to work by a system**.
## How the pump and dump screener works
The first part of the indicator tracks strong impulse moves:
* sharp spikes upward
* aggressive selloffs downward
* short overheated market areas after which a pullback often begins
You decide for yourself, **which moves exactly count as significant**:
* whether to look for only Pumps, only Dumps, or both directions
* minimum impulse size in % (allows flexible adjustment for any asset and timeframe)
* how many candles the pump should take (to filter out sluggish, no-pullback moves)
* how many candles after the impulse to wait for a signal (to look only for quick pullbacks)
* pullback depth filter at the moment of entry (so as not to enter too late at the end of the pullback)
This allows you not to react to any market noise, but to focus only on those situations where there really was a sharp impulse.
## How the signal module works
After the impulse is found, the indicator does not just mark the pump or dump on the chart, but **waits for entry conditions** and helps structure position management.
First of all, you need to choose the signal delivery mode:
1) Start of pullback
The signal appears on the very first candles, when price has just started to pull back after the impulse.
Suitable for those who want to:
* enter as early as possible
* get more signals
* trade more aggressively
Pros:
* early entry
* fast trades
* more opportunities
Cons:
* less confirmation
* more sensitivity to noise
2) Bounce from a level
The signal appears after a reaction from a strong higher-timeframe level, if price pierces the level but **fails to hold above it with the candle body**, and a bounce begins - the signal appears.
Suitable for those who want to:
* fewer signals
* higher accuracy
* more conservative style
Pros:
* stronger noise filtering
* higher-quality entry points
* the logic is closer to classic price action
Cons:
* significantly fewer signals
* some moves will be missed
Next, you should set the Stop Loss - by default, the stop is calculated individually for each position, taking current volatility and ATR into account, so as to reduce risk.
You can change the Stop multiplier to suit yourself - increase it or decrease it in percent, proportionally to the initial value.
After setup, you will see hints on the chart - where the targets, stop, and risk-to-reward estimate are.
{% hint style="info" %}
At each setup stage, check the results in the auto-tester to understand how well they fit the selected asset and timeframe.
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## How alerts and Telegram signals work
In the best Midas traditions, the indicator does not force you to sit in front of the chart around the clock, and supports [**TradingView alerts**](/faq-en/alert-setup.md) **and sending signals to Telegram.**
This allows you to:
* track impulses across multiple coins at once
* not miss quick pullback trades
* use the indicator as a semi-automatic signal/trading bot
{% hint style="info" %}
If you have a premium plan connected, you can set up alerts [in Telegram.](#alerty-i-telegram-signaly)
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### Precise tuning for any market
One of the main strengths **Midas🚀Pump\&Dump** - is not just a signal tool, but **a logic builder for your trading style**.
#### Trading direction
* Pumps only
* Dumps only
* both directions
This is convenient if you want to:
* work only with the market
* adapt to the market cycle phase
* not mix long and short scenarios in one system
#### Minimum impulse size
Allows you to filter out small moves and leave only truly strong pumps/dumps.
The higher the value:
* the less noise situations
* the rarer the signals
* the stronger the overheating must be before entry
#### Impulse speed
You can specify, **over how many candles the move should happen**.
This is important because:
* a fast pump and a gradual rise are not the same thing
* a fast dump and an ordinary correction are also not the same thing
The indicator is designed specifically for **sharp impulse moves**, not for any trend sections.
#### How many candles to wait for a signal after the impulse
If, after the found pump or dump, price does not give an entry for too long, the scenario is considered irrelevant and reset.
This helps:
* not trade late signals
* not enter old moves
* focus only on fresh pullbacks
#### Pullback depth filter
One of the most useful filters.
If by the time of the signal price has already retraced too much of the impulse, the entry is skipped.
Why this is needed:
* so as not to enter an already “late” phase of the move
* so as not to catch the leftovers after most of the move has already happened
* to maintain an adequate risk/potential ratio
#### SL multiplier
The stop is calculated automatically taking ATR and current volatility into account, and then can be increased or decreased to suit your style.
This gives flexibility:
* for aggressive trading, you can keep tight stops
* for a more “wide” style, you can increase the SL
### IN THE NEARBY RELEASE, FLEXIBLE SETTINGS WILL BE ADDED:
#### Trailing stop
Trailing can be enabled after:
* TP1
* TP2
* TP3
This is useful if you want to:
* lock in part of the move
* then let profits grow
* not close the trade too early manually
#### ATR multiplier for trailing
Allows you to tune the trailing stop sensitivity:
* a smaller value = a tighter trail
* a higher value = more room for price
#### Wait for trade close before a new signal
If the option is enabled, the indicator will not spam repeat signals until the previous trade is finished.
The benefit is obvious:
* fewer duplicates
* less clutter
* cleaner statistics and discipline
#### Candlestick close confirmation
You can choose:
* wait for the candle to close
* or get the signal earlier
This is especially important for different timeframes:
* on small timeframes, waiting for the candle close helps reduce noise
* on larger timeframes, an early entry sometimes allows you not to give back a significant part of the move