# Investing (long term)
**Investment style** = do not react to every local impulse, but look at the global trend, filter out noise, and build a position only in strong zones near the market bottom.
The main thing here is to build a position in time at a good price**.**
**So as not to get involved in** the chase after every signal and not jump into the last carriage, Midas helps to:
* trade **only from key interest zones**, where price starts to move
* enter **only on confirmation,** where action is needed right now
* filter out unnecessary noisy signals
### 🤓For beginner investors
Set up the indicator:
* Strategy and number of signals - **"Investments**��**"** (signals appear rarely, trades take a long time to play out, there is almost no noise)
* Signal filter against the trend - "Price Channel" (signals against the trend will be hidden automatically)
* Set the same settings in the lower indicator for synchronized operation
If you're a beginner or confused, use only one timeframe **1 day** and that's it - no need to play the hero until you can repeat the algorithm 20 times in a row:
* Step 1. Using [the price channel](/faq-en/faq-midas-up/price-channel.md) we look for a clear uptrend - it is enough to find green color sloping upward
* Step 2. Using the lower boundary of the channel, we determine the interest zone from which we will build a position in parts, not all at once
* Step 3. We wait for confirmation of a bounce from the interest zone - several candles cannot break through the interest zone (the channel boundary) - we start building the position in parts; when a BUY signal appears, we add the remaining part; the approximate targets and stop will be set on the chart automatically
🎯STEP-BY-STEP TRADING ALGORITHM
**Step 1. Look for an uptrend "for the future" using the price channel**
* The price channel is green
* Sideways market (yellow channel) = skip the asset so you don't freeze your money
**Step 2. Wait for price to approach the interest zone**
* Price must reach the lower boundary of the channel and get a reaction
**Step 3. Entry**
* Wait for **the candle to close** and for confirmation of a bounce from the channel boundary (several candles could not break through)
* Build the position in parts **at the moment of the bounce -** stop beyond the zone / channel edge
* **After a Buy signal, add the final part**
**Step 4. Exit**
* If price reaches the first target, lock in 50%, move the stop to breakeven
* The main target is the nearest channel boundary / level / liquidity (don't be greedy)
**To avoid blowing the deposit and freezing money for nothing:**
* No level, no trade; a signal "in the air" = garbage!
* Do not trade against the trend. Look only for active assets.
* Always wait for the signal on candle close. Trading without this turns into chaos!
* Always wait for confirmation - several candles could not break through the level
**Mini self-check checklist:**
* Does the price channel show direction? ✅
* Is price at the channel boundary? ✅
* Buy in the direction of the channel? ✅
* Has the candle closed? ✅
* Stop beyond the level? ✅
* Take profit at the next zone? ✅
### 🎯Visual examples of how to trade and how not to trade
{% tabs %}
{% tab title="✅Long trades" %}
We see a clear uptrend - the green price channel is pointing upward
We wait for price to approach the interest zone - the lower boundary of the channel
We wait for confirmation of the bounce and the signal - we open a long
We take profit at the upper boundary of the channel
Trades "in the air" - even if there was a signal, we skip it - we trade only from levels
{% endtab %}
{% tab title="✅Short trades" %}
We see a clear downtrend - the red price channel is pointing downward
We wait for price to approach the interest zone - the upper boundary of the channel
We wait for confirmation of the bounce and the signal - we open a short
We take profit at the lower boundary of the channel
Trades "in the air" - even if there was a signal, we skip it - we trade only from levels
{% endtab %}
{% tab title="❌Signals in the air" %}
Signals "in the air" - the channel is pointing down, the trend is downward:
* ❌**Bad:** Sell appeared in the middle of the range, not at the upper boundary of the channel
* ✅**Good:** Sell appeared at the upper boundary of the channel in the direction of the trend
{% endtab %}
{% tab title="❌Signals against the trend" %}
Signals "against the trend" - always a short move, high risk. frequent stops
* ❌**Bad:** Buy in a red channel when the trend is down
* ✅**Good:** Buy in a green channel when the trend is up
{% endtab %}
{% endtabs %}
### 😎For advanced investors
Set up the indicator:
* Strategy and number of signals - choose **"Investments**��**"** (signals appear rarely, trades take a long time to play out, there is almost no noise)
* Signal filter against the trend - if we trade only with a clear trend, choose "Price Channel" or "EMA-200" (you can test other filters and look at the history); if you want to see all signals and filter manually - skip it
* Set the same settings in the lower indicator for synchronized operation
To cut out as much noise as possible, take precise entries only from strong interest zones, and confirm the entry with several triggers - use three timeframes:
* **1 week**: we look at the global trend - we search for clear upward moves (on the upper indicator - [EMA](/faq-en/faq-midas-up/ema-moving-averages.md) and [channel](/faq-en/faq-midas-up/price-channel.md), on the lower indicator - обязательно [money flow](/faq-en/faq-midas-down/money-flow.md) to determine the market bottom/peak and the direction of money and follow large capital + [trend ribbon](/faq-en/faq-midas-down/trend-ribbon.md) to determine the current wave)
* **1 day**: we look at the interest zone ([horizontal levels](/faq-en/faq-midas-up/support-and-resistance-levels.md), [price channel](/faq-en/faq-midas-up/price-channel.md), [liquidity heat map](/faq-en/faq-midas-up/liquidity-heat-map.md), [horizontal volume profile](/faq-en/faq-midas-up/horizontal-volume-profile.md))
* **4 hours**: we find the entry (we look at signals on the lower TF - we do not pay attention to signals on higher TFs)
🎯STEP-BY-STEP TRADING ALGORITHM
**Step 1. Context (1 week)**
* Look for assets where the trend is up
* Sideways market = you trade only from levels, no EMA and no "signal in the air" and even then - only if [money flow](/faq-en/faq-midas-down/money-flow.md) shows a reversal at the market bottom
* Confirm the strength of the level with shelves of [horizontal volumes](/faq-en/faq-midas-up/horizontal-volume-profile.md)
**Step 2. Zone (1 day)**
* Price came to a **strong level** or channel boundary or horizontal volume
* There is [liquidity](/faq-en/faq-midas-up/liquidity-heat-map.md) nearby (as a target, or where they may "push before the reversal")
**Step 3. Entry (4 hours)**
* Wait **the candle to close** for confirmation of a bounce from the interest zone
* Enter **after the reaction** in parts (not into the level, but from the level), stop beyond the interest zone
* Do not place the stop in the liquidity zone (purple strip), price may take that liquidity along with your stop
**Step 4. Exit**
* Targets: the next strong level **or** the nearest major liquidity
* If price "swept liquidity" and gave a reversal, don't be greedy - take profits or scale out in parts: 50% immediately, the rest depending on the situation
Mini self-check checklist:
* 1 week: clear trend and context? ✅
* 1 day: strong zone? ✅
* 4 hours: is there a reaction? ✅
* Additional triggers (money flow, trend ribbon) confirmed the trade? ✅
{% hint style="info" %}
We look at Buy / Sell signals only on the lower timeframe, where we determine the entry; on higher timeframes we do not pay attention to signals - they are needed only to analyze the trend and strong levels.
{% endhint %}
### ⚙️Midas Up settings preset for investments
Let's go through the top tools of the upper indicator - what to enable/study so that it is useful, not just pretty. You can hide the rest to declutter the chart:
1. Trend (the direction we trade in)
* Simple way - [price channel](/faq-en/faq-midas-up/price-channel.md) (shows the local trend and the channel boundaries from which a bounce may occur)
* Advanced way - [EMA 20 50 100 200](/faq-en/faq-midas-up/ema-moving-averages.md) (with 4 different moving-average periods, you can quickly understand the local and global trend)
2. Levels (interest zones on the upper indicator from which price will react)
* For a clear trend - [price channel](/faq-en/faq-midas-up/price-channel.md) (we wait for a reaction from the channel boundaries)
* For sideways movement - classic horizontal [support and resistance levels](/faq-en/faq-midas-up/support-and-resistance-levels.md)
* For determining targets and stops - [liquidity heat map](/faq-en/faq-midas-up/liquidity-heat-map.md) (shows where price will be magnetized to - where you should not place a stop)
3. Confirmations (additional triggers for opening a trade)
* [Buy / Sell signal](/faq-en/signals-and-strategy.md) - is not an "enter" command, but only a reason to open the chart or an additional confirmation of the setup (for example, the trend is bullish, price has pulled back to a support level, a bounce upward has started, and we got a Buy signal - this is confirmation)
* [Buyers / sellers pressure](/faq-en/faq-midas-up/candlestick-hints.md#davlenie-krupnykh-igrokov) - these are green and red dots near the candle; for a long trade a green dot is good, for a short trade - a red dot.
### ⚙️Midas Down settings preset for investments
Similarly, let's review the top tools of the lower indicator - what to enable/study so that it is useful, and what can be hidden to declutter the chart:
1. Trend (we confirm the direction we trade in)
* Global - [money flow](/faq-en/faq-midas-down/money-flow.md) (shows the market bottom and peak very well + where the money is going)
* Local - [trend ribbon](/faq-en/faq-midas-down/trend-ribbon.md) (shows the current wave structure very well without noise)
2. Confirmations (additional triggers for opening a trade)
* [Price impulse](/faq-en/faq-midas-down/price-impulse.md) - replaces all oscillators and shows the strength and speed of the impulse much more accurately, and the dots on it show the moment of impulse reversal earliest of all
* [Heat scale of the 6 main oscillators](/faq-en/faq-midas-down/overheating-by-6-oscillators.md) - quickly and conveniently shows the overall picture of where the market is moving price (when the scale is broadly colored, where it reverses (when the colors broadly disappear)
### 🔔Alerts for investments
* On the lower 4-hour TF, set alerts for BUY / SELL on candle close
* On the higher 1-day TF, set alerts for [**bounce from level**](/faq-en/alert-setup.md)
* If you need Telegram alerts - detailed [instructions here](https://faq.midas-club.com/alerty-v-telegram).
### 📊How to test the indicator on historical data
Method 1: open settings and uncheck "Show only the last signal" - all past signals will be displayed; they are not repainted after the candle closes, so you can analyze how and where they appeared and find patterns that work
Method 2: open settings and choose the indicator mode ["Auto-tester"](/faq-en/operating-mode.md) - this will show you a table with statistics for the last week / month / year, including signal stats and their P/L, stops, win rate, etc...
### ❓Frequently asked questions about investments
On which timeframes should you even trade long-term?
**Base:** entries are most often on **4 hours**, because there is less noise and hysteria there. On higher TFs (1 day/week) look at **trend and zones**, but not signals!
What to do if on one TF there is one signal, and on another TF there is a different one?
Buy / Sell signals work like waves and each TF has its own signal, not related to another TF. It is important to confirm the trade with a signal only on the TF on which we are looking for the entry. On other TFs, do not pay attention to signals!
Where should the stop be placed when investing?
Classic: **beyond the level / beyond the zone**, so that a breakout truly invalidates the idea.\
And one separate rule: **do not place the stop in liquidity zones (purple stripes)**, those are often the ones that get "swept".
Where is it more logical to take profit?
* nearest strong level
* boundary of the price channel
* nearest liquidity (as a "magnet/target")
* If you want discipline: take 50% off quickly, manage the rest depending on the situation, but do not turn a scalp into a swing trade "because I believe"
Why didn't the level work?
All levels get broken. Bet on strong ones where there were 2 reactions and confirm the bounce - wait for several candles that could not break through.
In investing, enter immediately on the signal?
No. A signal is confirmation, not a command to "go all in". In Midas, the signal notifies and helps analyze; you make the decision.
How do I avoid catching countertrend moves and suffering?
Enable **filtering against the trend** (EMA-200 or price channel). This is the basic way to remove all signals against the move.
EMA, price channel, or money flow: which is better for investing?
Definitely - money flow. It best shows market cycles - the bottom and peak of the market, as well as the direction of money in the asset. It's enough to buy the bottom in parts and take profits at the peaks - always following large capital!
What to do if the market is sideways and the channel is yellow?
Yellow mode = the market is chopping. In sideways conditions it is better either to **skip**or (if you are no longer a beginner) trade **only from the boundaries/strong levels and with confirmation from money flow (the flow is pointing up)**, but under no circumstances in the middle of the channel. The price channel was created precisely to see this.
How do I set alerts correctly for investing?
Logic: alert = "**open the chart**", not "enter without thinking". Set BUY/SELL on the 4-hour TF. Notifications can be received in the app/browser/email, etc., and the list/limits depend on the plan. See the special section (table of contents on the left) for how to set it up.
What matters more: the level or the signal?
The level/zone is more important - no question. A signal **without a zone** often turns into an "entry in the air".
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