What is big cash flow?

The big money is the money that hedge funds and the big guys - the sharks, are dealing with

Considered smart cash flow, these are trading performed by investors with more money, and "have more information" than other investors.

Every time the market makes big up and down waves, it is said to be moved by this large cash flow. It sounds a bit exaggerated, but really professional traders who manage huge amounts of money already have large trades in front of these waves. We don't have any solid evidence, but it's arguable that large cash flows are something to go for.
The trader can always go wrong - hence capital management is necessary.

Big money flow - Strategy 1: Support and resistance

Where do most of the big cash flows concentrate?

Resistance support can be easily explained as price zones where, when price hits, the price is likely to reverse. However, why did the price reverse there? Because that is where many large orders of Smart Cash flow are gathered. More importantly, it is a place where big hands are very fond of stop-loss hunting, above resistance and below Support, as those are the familiar stop loss positions of many retail traders.

Therefore a good strategy is to buy at support, sell at resistance. Or wait for the price breakout at resistance to selling; Now support to buy.

Big cash flow - Strategy 2: Round number area

An important factor for you to keep track of the Big Cashflow is in the circular number areas.


When the price is around 1000, the effect is greater than when the price is at 970.

Circular numbers create a psychological effect on the human brain, and in trading, that effect has a huge impact.

Therefore, around the circular number areas, many orders of large cash flow are often concentrated. There are also lots of stop-loss and limit orders.

A good strategy is AVOID STOP in circular numbers, as it is easy to prey on a stop-loss shark. And DO ANY GROUND when the price hits the circles of numbers (for example, $ 1700 in gold).

Large Cash Flow - Strategy 3: Reversing bottom peaks

Large cash flows can also be found at top and bottom price reversal patterns


When price makes a higher low on a downtrend or a lower high in an uptrend, we know there is a change in trend. And Big Money is working.

However, it is necessary to have a breakout to confirm that reversal.

(CONTINUE)