Money Flow Pattern

Money Flow Pattern
This advanced indicator combines money flow analysis with a multidimensional assessment of trend strength, offering a comprehensive perspective on market sentiment across various time horizons. Its key components include:


1. Money Flow Visualization
The long-term flow (green/red wave) indicates the direction of market pressure based on its position above or below the zero line. To aid in interpreting the wave color, the area at the bottom of the indicator changes color in accordance with the main wave. The primary wave on the chart shifts color depending on the prevailing trend:
Green: Accumulation (capital inflow)
Red: Distribution (capital outflow)


2. Short-term investors (blue wave):
A fast-reacting curve that reflects momentary mood swings, helpful in identifying local extremes.


3. Mid-term Signals (white and violet lines)
Lines above zero reinforce bullish signals; lines below zero strengthen bearish signals.
Line crossovers generate signals:
Green dot: Potential entry point into an uptrend
Red dot: Warning signal for potential declines


4. Trend Strength Line
The color of this line (blue/orange/red) enables rapid assessment:
Weak trend – consolidation phase (blue)
Strong trend – optimal for trend-following strategies (orange)
Extremely strong trend – risk of reversal (red)

5. Auxiliary Layers
Both upper and lower colored zones (blue-green and blue-red) serve as reference areas.
Reference levels (-100, -50, 0, 50, 100) help assess extreme overbought/oversold conditions.
Gradient fills highlight overbought zones (red gradient) and oversold zones (green gradient).

Advantages of the Indicator
Multidimensional analysis: Integrates data from multiple timeframes (short-, medium-, and long-term).
Intuitive visualization: Color schemes and chart shapes make interpretation accessible even for beginners.
Signal filtering: Integration with the Trend Strength Line reduces false signals during sideways phases.