Read the Money Flow Indicator in Midas Down

How money flow appears on the chart

Analysing money flow shows how intensely capital enters or leaves an asset, but the global trend matters. A standard indicator shows local impulses rather than the full picture, so traders may buy while money is already leaving the asset.

Midas presents money flow as a smooth line that filters short-term fluctuations and focuses on global flows, helping identify stable trends set by large participants.

• The flow is growing - money comes to the asset, the trend is bullish.
• The flow is falling - money is leaving the asset, the trend is bearish.
• The green zone is the peak of the market.
• The red zone is the bottom of the market.
• A point on the flow is the place of a trend reversal.

Flow growth🔴 Falling flowDefinition of the bottom

The flow line goes up, money goes into the asset, and then the price goes up, and that's the background for buying.

The flow line goes down, money goes out, the price goes down, and in those times, look for trades to sell, and don't buy against the flow.

When the flow enters the red zone, dots on the line indicate a possible market bottom and reversal attempt. A turn after one or more dots helps confirm that a new trend may be forming.

How to use money-flow context

Price follows capital flows, so money flow helps show the broader trend to follow.

• When money flows into an asset, the flow goes up – so does the price: look for buy deals.
• When money is withdrawn from an asset, the flow goes down – the price falls too: look for trades to sell.
• For spot positions, the red zone near a market bottom can provide an area for building a position.
• The best time to sell is at the peak of the market, at the highs of the green zone.
• If cash flow is rising, shorting against big players is dangerous – filter false signals against the trend.

A simple money-flow workflow

We use signals and cash flow. When the price comes out of the red bottom of the cash flow and starts to rise, we wait for Buy signals in the direction of growth and open the long. When the price has passed the green peak of cash flow and started to fall, we wait for Sell signals in the direction of the fall and open the shorts.

It works best in continuation of the trend - always look at the direction of the flow. Experienced traders can open trades earlier or gain positions in parts.