Institutional Trading
Institutional Trading is an insider trading concept of how big participants manipulate and deliver price, mainly focusing on price delivery algorithm, order blocks, and order flow trading concepts.
The price delivery algorithm seeks liquidity either on the sell side or buy side. based on which side of the market price will seek liquidity, we can either have a bearish or bullish order flow. when price collects sell-side liquidity we will be anticipating a bearish order flow and when price collects buy-side liquidity we will be anticipating a bullish order flow or bullish market structure. This is what is called a break or shift in market structure in the retail trading space depending on which side of the market price broke structure.
Bullish Order Flow Indicates that the institution or big participants are net long in the market whilst Bearish Order flow indicates that the big participants are net short in the market. Therefore, it is ideal to trade in line with order flow because it will give you the directional bias of the market.
When Order Flow is Bullish, it’s ideal to focus on long positions using trading concepts such as bullish order blocks, or fair value gaps with a break or mitigation structure to frame your trading setup. and when Order Flow is Bearish it’s ideal to look for short positions using but not limited to trading concepts such as bearish order block to frame your trading setups.
From The Above Chart Example, we can see that in a bearish order flow or bearish market structure, price takes out previous lows while highs stay intact. Therefore, looking for bullish order blocks is not favorable instead look for bearish order blocks to sell short. You can Learn More On ghosttraders
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Bullish and Bearish Order Blocks How to trade order blocks, order flow, and fair value gaps
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Originally published at https://ghosttraders.co.za on August 1, 2022.