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If the ribbon is green, this usually means that the price is increasing and there is a strong uptrend, which is good for trend scalping. However, bear in mind that the more extended this ribbon gets, the bigger the likelyhood of a short-term correction. If a correction happens, the ribbon turns yellow. When yellow, imagine the market is at a decision point. Swing traders may buy the dip (and go long) if volume technicals are looking good. However, if the orange box appears labeled as 'caution' zone and volume technicals suggest declining interest, it might be time to go on defence and reduce exposure or even leave the market alltogether. A small pump within an orange zone is an excellent offramp. If the the red 'Rollover' area appears, markets are highly volatile and amidst a crash. These area's may provide low entries for DCA traders, but for most traders are best to avoid. If the ribbon is red, markets continue to fall and spot traders should be very careful and trade defensively. The blue zones represent 'Accumulation' zones which indicates that most selling pressure has alleviated, which presents good opportunities to increase exposure to side ways trading or longer term accumulation and swing entries.

This indicator measures the discrepancy between the average ask price for Bitcoin on the futures markets and compares it to the spot price. When on average the Bitcoin Futures are sold at a premium (meaning, the price is higher than the actual price, futures market participants are expecting prices to rise). Conversely, if the Futures Price gets sold at a discount, this indicates that prices are expected to fall or reverse to the downside. Particularly powerful when used in conjunction with other indicators.

This indicator is best used in conjunction with the EMA Ribbon. There is two ways to use this indicator. It encompasses a trendline (plotted as an area) and a histogram which presents short-term money flow. Generally, if the trendline area is above the 0-axis, this generally supports a longer term bullish trend, in which case the area flashes green. If the MFI signal line drops below 0, the broader trend turns bearish, which is reflected in red. The short term Money Flow, represented as an histogram, represents increases or decline in volume which ussually coincide with bigger moves. The short term money flow may start flashing green or red preceding the larger trend. If the Money Flow turns negative, but the larger trend is still intact, it the histogram will remain green but fades. Conversely, if the Money Flow turns positive but the broader trend still shows volume outflow, the histogram will show a faded red.

Generally, healthy market trends are supported by increasing volume, representing increased interests by traders and investors. By applying large-timeframe moving averages to the On Balance Volume, the broader trend can be algorithmically determined. If this indicator shows green, it means the On Balance Volume is increasing which is telling for a bullish trend. Since this indicator does not take price into account, it can be a leading indicator, signalling potential trend reversals before they happen. Generally, if this indicator starts to flash bearish whilst prices are still elevated, this is a precursor to falling prices and investors or traders can anticipate by lowering their long exposure. Conversely, if price structure is oversold, and this indicator starts to flash green, investors and traders seek to increase their exposure to given asset to anticipate imminent rising prices.