LIQUID MONEY FLOW Trading Guide
The Liquid Money Flow (LMF) is a stable, non-jerky oscillator bounded strictly between -100 to +100. It utilizes Vortex-style accumulation metrics passed through two Ehlers SuperSmoother filters to eliminate high-frequency noise, creating an ultra-smooth representation of buying and selling pressure.
What does the indicator show?
- Main Flow Line: A bright green, smoothly flowing line indicating the primary balance of money entering (above 0) or exiting (below 0) the asset.
- Signal Line: A secondary, slower reacting white line mapping the macro trend.
- Pressure Cloud: The shaded area filling the gap between the Main Flow and the Signal line.
- Green Cloud: Main line is above the Signal line (Aggressive Buying Pressure).
- Red Cloud: Main line is below the Signal line (Aggressive Selling Pressure).
- Zero Line: The midpoint at 0. Values pushing toward +/- 100 represent extreme overbought or oversold liquidity states.
Key Settings
- Accumulation Period: How many bars backward the Vortex-logic looks to calculate price-delta versus volume.
- Fast Smooth (Liquid): The super-smoother parameter for the main line. Higher values increase lag but drastically reduce jitter.
- Slow Smooth (Cloud): The secondary super-smoother parameter generating the slower Signal line.
How to use Strategy Parameters (Condition Source)
Within the Strategy Tester module, you can leverage the data from this indicator to create powerful logical conditions for trade entries and exits.
1. Core Cloud and Flow
Use the cloud state or flow crossings to dictate permissions for your automated bots.
main— The current numeric value of the fast Liquid Flow line.signal— The numeric value of the slower Signal line.diff— The exact spread between the Main and Signal lines (Pressure). Positive values mean a Green cloud; negative means Red.
Strategy Example: Ensure your breakout bots only initiate Long positions when diff > 0 (confirming the short-term money flow is outpacing the macro average).
2. Overbought & Oversold Tactics
Take advantage of the mathematically bounded -100 to +100 scale.
Strategy Example: Create a condition triggering a Mean Reversion Short specifically when main > 80 (signaling extreme, mathematically unsustainable accumulation).