Market Cipher B/
Money Flow
TL;DR
Money Flow is the dominant background layer of Market Cipher B — a large baseline area series oscillating around zero. LiquidMind displays positive flow in teal and negative flow in purple. It contextualises whether 'smart money' is accumulating or distributing.
How It Works
- 1
The Money Flow oscillator is calculated by weighting price movement with volume — it shows the net capital flow into or out of an asset.
- 2
Values above zero (teal fill) represent sustained buying pressure — institutions are absorbing supply.
- 3
Values below zero (purple fill) represent sustained selling pressure — institutions are distributing into retail buy orders.
- 4
Extreme readings (large positive or negative values) indicate climactic moves — these often precede reversals.
- 5
When Money Flow diverges from price (price makes a higher high but Money Flow makes a lower high), it signals weakening buying pressure — a bearish divergence.
- 6
LiquidMind uses Money Flow extremes to confirm liquidity sweeps — a sweep on deeply negative Money Flow is a stronger reversal signal.
Money Flow is the primary 'institutional pressure' gauge in LiquidMind's MCB stack. When the system detects a POI + liquidity sweep, it checks whether Money Flow is at a multi-candle extreme in the expected direction (e.g., deeply negative during an SSL sweep before a long). If yes, the signal confidence is elevated. Shallow Money Flow readings at POIs are treated as lower-conviction setups.