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Indicator (Tops & Bottoms) Guide

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Ashdeep Singh
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0% found this document useful (0 votes)
18 views

Indicator (Tops & Bottoms) Guide

Uploaded by

Ashdeep Singh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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"FOLLOW THE MONEY

& TAKE A SWING"


Few words for me to you about this indicator. In this short
Money Flow Indicator [Top & Bottom Finder] guide I will
show you how I‘m using it and how I‘m making decisions
based on this indicator.

This is my 5-7 years of hard work. I was using a bunch of


other indicators, but they had some delays, hard to “read“
and other problems. So I teamed up with a few good fellows
of mine and they, together with me, made it all possible.

A lot of nights have been spent sitting on our computer


screen to build this indicator and of course during our free
time right now we are still trying to improve it to its
perfection.

At least it‘s done and it‘s ready to be used!

My dream was to have my own indicator and to spread this thing to people who really need it for of course
affordable price. You don’t need to pay for those crazy expensive indicators anymore ($500-$1000).

So let's dive in and let’s explore what possibilities this tool has because this indicator is on steroids! hehe

We are going to discuss everything: scalp trading, swing trading, divergence trading, money flow tracking,
how it could help you to predict an upcoming bull and bear market when you zoom out your charts, etc.

Sit back and enjoy this free guide and you will understand what you are dealing with.
BUY AND SELL SI SIGN
IDENTIFIES POTENTIAL TOPS
& BOTTOMS.
Let’s discuss about trendlines, buy and sell signals, and
everything that you need to know and understand when there’s
an opportunity for us to go Buy/Long and Sell/Short.
SIMPLE TRENDLINE:

Magic Wand shows us that


we are in a downtrend.

Short/Sell opportunities.
Buy/Long opportunities.

Buy/Long opportunities.

Magic Wand shows us that


Magic Wand shows us that we are in an uptrend.
we are in an uptrend.

Thanks to our team we were able to develop our trendline algorithm to its perfection. We had to
combine a lot of EMA’s and other tools on TradingView to accomplish this. I could call this
trendline a “magic wand”. It works perfectly in every timeframe. Whenever this trendline turns into
a WHITE/GREEN you always start planning by opening your Buy/Long position, take your profits,
and switching into a Sell/Short position whenever this trendline turns into a RED one. Do your
backtesting and find out yourself. This is how I trade on a smaller timeframe when the market is in a
consolidation phase and there are no good setups at that moment.
There are 3 types of signals and it’s very easy to

SELL SIGNALS (TOPS) understand.

Strong(+) buy/long signal - it means we are in


the phase where can see a potential bottom
phase and we can start planning our Buy/Long
position.
Represents a Strong Represents a Medium Represents a Weak
Buy/Long Signal Buy/Long Signal Buy/Long Signal
Medium strength buy/long signal - it means we

SELL SIGNALS (TOPS)


are in the phase where can see a potential
bottom phase as well just not that strong
enough to be confirmed.

Weak buy/long signal (dot) - it means that we


caught a potential top. We call it weak but
Represents a Strong Represents a Medium Represents a Weak sometimes they are more accurate than strong
Sell/Short signal Sell/Short signal Sell/Short signal
or medium signals.

Strong(+) sell/short signal - this is the signal where there is a probability during the downtrend for
us to enter a sell/short position. All the signals need to be received together with a trend by using
that magical trendline.

Medium sell/short signal - also represents a top finder, but again needs to be followed together
with a trend. This signal represents the medium strength of the top finder.

Red dot - represents a top signal at the current time but it is very weak. But by following the trend
this signal is also accurate for a potential sell/short position. With the right leverage, you will be
good.
TRENDLINE + SIGALS:
There will be situations like
this when you are going to
receive that the magic wand
shows you an uptrend after
your top/sell signals. Just
close your position and wait
for the next opportunity. Of
course, in this situation, you
could’ve made profits.

Downtrend. Potential Top


signal. Short/Sell.

We are in an uptrend and we


have this potential bottom
We are in an uptrend and we signal. Buy/Long
have this potential bottom opportunity.
signal. Buy/Long
opportunity.

As an example let's start from the left side. We see a red sell signal and our trendline is also in
the red. That means during the downtrend we reached our potential top. Then our trendline
turned into a white (represents uptrend) and yes, you can plan your next long/buy position.

On the right side when the market starts to consolidate and we are planning to enter our
long/buy scalping positions we see two beautiful buy signals. That means during an uptrend
we reached our potential bottom and we are good to go to jump straight into a long/buy
position.
TRENDLINE + SIGALS:

An opportunity for us to
open a buy/long after
Magic Wand shows us that receiving these bottom
we are in an uptrend. finding signals.

An opportunity for us to
open a buy/long after
receiving this bottom finding
signal.

Again, let’s go with our trendline. We are now in an uptrend which means we are good to go
with our long/buy positions, but also we got a bottom signal, a potential bottom (anything
could happen on the market) and I’m confident in entering my long/buy position as well.

On the right side, the price went down a little bit and again we received even 3 signals with a
potential bottom signal, start long/buy again. Just remember, understand your asset's
environment, understand all the moves your asset is making, and always take profits!
TRENDLINE + SIGALS:
An opportunity for us to
open a short/sell after
receiving these top finding
signals. An opportunity for us to
open a short/sell after
receiving these top finding
signals.

Downtrend (only
looking for short/sell)

Again, let’s go with our trendline. Everything is Red, we are in the downtrend and as an extra
confirmation, we are getting these top-finding signals. A potential top was confirmed multiple
times. This is a very good edge for us to take our short/sell positions. Try to take your profits
all the time and remember if our trendline “magic wand” is going to start turning into
white/green again you just simply close your position if you are still into it and if you missed
your chance to take profits.
MONEY FLOW + MOMENTUM WAVES:
Here you can see White waves and red waves
(green and red). I’m choosing white over green
color because this is my personal style. I love
those colors!

The dark gray colors represent the momentum


waves are widely used technical indicators that
measure the rate at which the price of a specific
stock fluctuates.

They also complement other indicators like


volume and volatility well.

This is the most powerful tool that I have on my


TradingView charts.

I could say truly that this indicator paints a full picture of what’s going on in the market at the
current time. For example, if the price is going up all the momentum waves going down and the
money flow is leaving (going down) that means there is a good probability to understand that there
is an upcoming move to the downside. And of course, if we see the opposite, if the prices go down
but these indicator inputs are going up - a potential upcoming price movement to the upside. Let’s
take a look at the examples.
FULL EXAMPLE:

The place where you can open


your long/buy position

Potential Bottom Phase.


Money flow is going up and the
momentum waves going up

This is an example of how you should start using the money flow and the momentum waves
as your edge against other trades. I personally use this on bigger timeframes like 4h+ and 1D
(also on 1h+). We can see that the money flow is rising from the red and our momentum
waves are giving this beautiful pump. Always best to open your long/buy position when you
are in a red money zone and look for those bumps (divergence/momentum waves).
FULL EXAMPLE:

Perfect place for us to open


short/sell position. Also, look at
this massive bearish candle.

Price is going up but the


momentum waves and the money
flow is going down. Divergence!

Money flow is going down.

Divergence

Now, on the other hand, we can see that the money flow is leaving the market and
momentum waves are going down. We also confirmed the divergence, because the price was
going up but everything else on the bottom money flow indicator was going down. That is
what creates divergence. Perfect opportunity for us to plan our short/sell position.
WHAT MONEY FLOW TELLS US:
The place where we were inside
extremely overbought area.

Bearish Divergence.

White/Green money flow. Bullish.

Red Money flow. Bearish.


Bullish Divergence Bump.

Potential Bottom Phase. An extremely oversold area. Potential Top Phase.


Need to start looking for
a buy/long position.

I’m always following this bottom money flow indicator when I’m looking at the bigger picture
like 1h, 4h, 1d timeframes. This indicator is designed in the way the market looks at the
current moment. It paints a perfect painting, a picture to you and that is how you can
understand and you can predict what’s going to happen next.

I’m always planning my moves based on this indicator and I'm trusting it. I created something
that I could trust and know how to read.

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