1 | 00:00:25,860 --> 00:00:34,950 | ICT: Okay, folks, welcome back. This is Lesson Two of November or the third month of the ICT mentorship. Okay, we're going to talk about institutional order |
2 | 00:00:34,950 --> 00:00:45,450 | flow, and what makes it easy to see. And we're going to be building a little bit on what we just mentioned in the previous lesson. And we're using that |
3 | 00:00:45,450 --> 00:01:08,040 | Eurodollar example. And here's that order block we showed earlier. We showed in less than one. You see, the open comes in at 131 97. And the low comes in 5145. |
4 | 00:01:09,030 --> 00:01:28,920 | In the low, I'm sorry, the high comes in at 5151. And 5143, so very sensitive there. The idea is if we see this on a monthly chart, okay, we can go into the |
5 | 00:01:28,920 --> 00:01:47,010 | marketplace and anticipate an ideal scenario to unfold in this area here. Okay. Now, I'm stretching it low, because it ain't that big. Because we have that low |
6 | 00:01:47,310 --> 00:01:57,810 | to the opening price. As we mentioned, in lesson one, we discussed that there was going to be a high probability of stops resting below these lows down here. |
7 | 00:01:59,370 --> 00:02:10,230 | What I want you to focus on is Look at, look at the bodies of the candles, basically, merge at that same general area, I want you to ignore the wicks, |
8 | 00:02:10,980 --> 00:02:27,330 | okay, ignore those. And by having that in mind all below these lows in here, there's going to be a large pocket of liquidity in the form of sell stops. Now |
9 | 00:02:27,330 --> 00:02:34,590 | if we're looking at the monthly chart like this, and we think that there's going to be a high level of sensitivity up here, why because it's already come up and |
10 | 00:02:34,590 --> 00:02:44,970 | close in this range by coming up to this level here. And if the market is most likely going to trade lower and seek the liquidity below these lows in here now |
11 | 00:02:44,970 --> 00:02:55,080 | again, for your notes, when we're looking at institutional order flow, the idea is thinking like that market efficiency paradigm, okay, you're the market maker. |
12 | 00:02:55,650 --> 00:03:08,130 | So what you're looking for is where is the maximum level of liquidity in relationship to where markets have traded from and where they are presently, |
13 | 00:03:08,730 --> 00:03:15,390 | while the market has traded higher here, so where's the highest level of liquidity from this point here, if it's going to go higher, it would be above |
14 | 00:03:15,390 --> 00:03:26,490 | here but we had this void that we closed in to the markets now rebalanced through a point at which they sold first, it moved quickly away, came back up |
15 | 00:03:26,490 --> 00:03:35,400 | and closed in that range that created by all these down black candles. So in other words, the market has delivered price going down, it has to close in that |
16 | 00:03:35,400 --> 00:03:48,000 | gap by trading it on the upside so wherever wherever there is a Black Candle there must be a green candle. The idea is you want to see where the market will |
17 | 00:03:48,000 --> 00:04:02,190 | reach for for its next level liquidity. We had the rundown here clearing out the stops market clears those stops and then once it clears their stops right below |
18 | 00:04:02,190 --> 00:04:10,770 | here. Now once all this movement over here all this running stops. Yes, it moves back to a order block but we're not talking about that. Now I won't talk about |
19 | 00:04:11,190 --> 00:04:19,890 | how the market will seek liquidity. The market will run up from this point here because it's already absorbed all the liquidity on here and yes just for |
20 | 00:04:19,890 --> 00:04:27,300 | completeness sake it's returned back to a bullish order block over here which is the down calibrate for the move. So the market is going to do what it's going to |
21 | 00:04:27,300 --> 00:04:36,840 | seek the liquidity on the upside so where does that reside next? This up candle that's where they sold the last time and look we created another liquidity void |
22 | 00:04:36,840 --> 00:04:48,360 | all these down candles. Okay, all black candles down. Okay. So there has to be the market offering. On the buy side, they offered it on the sell side. To |
23 | 00:04:48,390 --> 00:04:57,000 | balance it there has to be green candles or up candles in this case. Okay. All marked down, candles are black and all my up candles are green. So we have that |
24 | 00:04:57,000 --> 00:05:07,260 | same element, just repeating itself here. We're here. Okay? Now obviously, we always look at the middle of the up candle mean threshold. And you can see how |
25 | 00:05:07,260 --> 00:05:15,570 | the bodies of the candle respect that there's always going to be this extra little outrun on price with the wicks. Okay, now, I've mentioned this in many, |
26 | 00:05:16,110 --> 00:05:22,230 | many instances over the last six and a half years teaching Forex online, that you're gonna have to allow that |
27 | 00:05:23,490 --> 00:05:32,640 | erroneous price action where it will read or run farther than you probably would expect it to, because of your broker. Okay, so they allow them to open the |
28 | 00:05:32,640 --> 00:05:44,250 | spread up a little bit more. So when price trades up, it hits this area of liquidity. Now, where we're going to be expecting to see price trade to, while |
29 | 00:05:44,250 --> 00:05:55,470 | the largest area liquidity would be resting below these lows, right? Or this low rather, look closely, just like we showed over here with the bodies of the |
30 | 00:05:55,470 --> 00:06:11,130 | candles, okay, we're gonna look at the bodies of the candles here. Okay, so classic technical analysis, who will say, Well, this, this wick is the low. And |
31 | 00:06:11,130 --> 00:06:20,490 | what I teach is it's the bodies of the candle is where all the volume is, the institutional volume is a difference. Now, the wick is always going to be |
32 | 00:06:20,490 --> 00:06:30,990 | directly related to retail. Okay, retail stops. Because we're looking at a retail platform most instances, you're going to see the wick is generally |
33 | 00:06:31,320 --> 00:06:44,760 | comprised of retail pricing, the bulk of the bodies, close to the interbank prices you're going to get. So we allow the wicks to provide us a erroneous |
34 | 00:06:44,970 --> 00:06:53,550 | price delivery, or extreme price delivery. But we want to do most of our analysis around the bodies of the candles. So what does that mean? It means that |
35 | 00:06:53,550 --> 00:07:07,230 | if we have the bodies of the candles defined here as the real low, and allowing all this to be viewed as retail, if we scrub the over tier, you can see how |
36 | 00:07:07,230 --> 00:07:19,440 | price trades just below the bodies of the candle as it would in terms of seeking the truest form of volume. From an institutional order flow standpoint, if we're |
37 | 00:07:19,440 --> 00:07:32,130 | not going to break the range on this run here, and we'll teach about that in the mentorship. But for now, we expect it to close in the range here. Just as well, |
38 | 00:07:32,190 --> 00:07:40,950 | we saw this up candle here, this down movement, price comes up and closes in its range here, then it runs for the liquidity below here. The point of what I'm |
39 | 00:07:40,950 --> 00:07:52,620 | showing here is once you understand where the market will most likely reach for. And this is a monthly chart. Now we can take a step back and say okay, if I can |
40 | 00:07:52,620 --> 00:08:02,160 | define the market, in terms of and we'll say for instance, say say we were lucky. Okay, we were really plugged in, we were studying and we felt that this |
41 | 00:08:02,160 --> 00:08:15,120 | mark was topping out up here. Okay, and we knew that once this law was violated here, we would have a potential range of that clearing out this consolidation |
42 | 00:08:15,180 --> 00:08:28,560 | staff will be resting below that. Okay, we would see reasonably expected to run through that. We also know that we have a bullish order block right here. Now |
43 | 00:08:28,560 --> 00:08:38,130 | notice it wicks through that. But the body of the candle, this bodies candle on it, sorry, this candle is potty rather, trades right into this candle here. |
44 | 00:08:38,820 --> 00:08:47,370 | Okay, so that's all it's required to trade into bullish order block, not a monthly chart now. So we can expect some expansion through and the RONDO |
45 | 00:08:47,370 --> 00:08:57,150 | liquidity at low here. Look at all the wicks. Okay, the wicks are no significant barrier. In terms of institutional order flow, we just know that there's going |
46 | 00:08:57,150 --> 00:09:07,500 | to be a large reason to expect stock resting below the wicks. We're inside the wicks let's let's say it that way, but below the bodies of the candle. Okay, so |
47 | 00:09:07,860 --> 00:09:10,830 | what we're seeing is we're seeing another area which |
48 | 00:09:16,410 --> 00:09:27,990 | we have price trading from the buys of the candle. We drag that over here. And we see price trades into that area right in here as well. Just seeking the |
49 | 00:09:27,990 --> 00:09:38,190 | liquidity below all these bodies of the candle and the wicks and recapitalizing this order block here. You can see the bodies of the candle look out respecting |
50 | 00:09:38,190 --> 00:09:58,260 | that all the bodies stay above this candles bullishness. Now, we would reasonably expect to see price trading down to that level at that point. If we |
51 | 00:09:58,260 --> 00:10:05,970 | see this willingness to want to be Do we capitalize on this bullish order block and we clear out the stops. The next area would be what to see price reach up |
52 | 00:10:06,360 --> 00:10:16,650 | into the void, which is up here. So we would see price want to reach up and capitalize this price level. So we have an area which institutional order flow |
53 | 00:10:16,680 --> 00:10:24,420 | is bearish. till we get down to here, then where is it going to do? It's going to look for liquidity on the upside. This is the area which you would expect the |
54 | 00:10:24,420 --> 00:10:34,110 | price at one to run up into. So as prices rallying up, this is all bullish. So institutional order flow is bullish here. Then once it gets to this point here, |
55 | 00:10:34,110 --> 00:10:48,060 | we're looking for what the stops below these lows here. So we would see institutional order flow, swing to the downside. And notice what's happening |
56 | 00:10:48,060 --> 00:10:58,890 | again, the bodies of the candles are violated with this down candle here. We clear out the stops. Okay. And again, we've mentioned it's retracing back into |
57 | 00:10:58,890 --> 00:11:05,640 | this bullish order block. From here where we reasonably expect price to go up to again, that's this bearish order block, do you want to see price reach up to |
58 | 00:11:05,640 --> 00:11:19,440 | here. So in this instance, we would expect to see what price rally up into this area. So all through here, institutional order flow is bullish. Now I can keep |
59 | 00:11:19,440 --> 00:11:28,230 | doing this back and forth, back and forth and show you example, after example, but what I'm showing you is from a monthly standpoint, you take the information |
60 | 00:11:28,230 --> 00:11:38,430 | I'm showing you here in my example. And again, here's the body of the candle, not the wicks, it steps through it. To go below the bodies of the candidate |
61 | 00:11:38,430 --> 00:11:46,500 | doesn't necessarily have to go through the wicks, we only need it to reach below the base of the candle. Okay, so while we have institutional flow that's bearish |
62 | 00:11:46,530 --> 00:11:55,980 | when it's in the red area. Okay. All we're going to do is internalize the marketplace like this. So, if you have it set up like this one a monthly chart |
63 | 00:11:57,540 --> 00:12:09,480 | all we have to do is break the market down into a weekly just changing into a weekly chart okay. So now we have the price shown in weekly basis. All all |
64 | 00:12:09,480 --> 00:12:22,680 | through here we have the market and selling condition markets in a bullish market condition. bearish market condition, bullish market condition, bearish |
65 | 00:12:22,680 --> 00:12:39,990 | market condition. Okay. So now what we've done is we've mapped out this entire Eurodollar from mid 2008 all the way to mid 2012. Just by understanding what the |
66 | 00:12:39,990 --> 00:12:49,650 | monthly levels on institutional order flow will give us an understanding those points of reference I showed you in September, what to focus on because that's, |
67 | 00:12:49,710 --> 00:12:56,910 | that's the recipe for all the trading you're ever gonna want to do. That's it, that's the secrets, okay, but you have to find them on a higher timeframe and |
68 | 00:12:56,940 --> 00:13:04,650 | arrive at where the high timeframe charts you're going to seek liquidity because this is where the large funds have their money and where the large money is |
69 | 00:13:04,650 --> 00:13:12,090 | found on the fund level. That's where the banks are going to reprice to it's not for the retail people because you're too small. If we're selling or expecting |
70 | 00:13:12,090 --> 00:13:22,320 | bearishness in here, okay, this decline sees a retracement back up into and yes it wicks through in Wix through but the body of this candle was where you'd be |
71 | 00:13:22,320 --> 00:13:33,510 | looking to be a seller, but this wick never violates this up candle. So we have a bearish order block retreated to expand lower price creates a down candle here |
72 | 00:13:33,510 --> 00:13:41,460 | right before this up move in in a time where expected institutional order flow should be seeing price move up into that bearish order block. |
73 | 00:13:45,690 --> 00:13:53,700 | Rate here's where you expect to see buying in an area at which bullish prices should be expected until it gets to this level here which is that monthly |
74 | 00:13:53,700 --> 00:14:01,890 | bearish order block we shown on a monthly chart then price would be reasonably expected to go lower to seek the stops below these candles down here at the |
75 | 00:14:01,890 --> 00:14:11,670 | bodies of these candles and that's what you see here. But look how the market look at the market provides us an opportunity of real crystal clear delivery of |
76 | 00:14:11,670 --> 00:14:23,820 | price where we see price repelled breaks down. Okay, when does it become apparent that it's gonna go lower? See this candle here, here, here here. This |
77 | 00:14:23,820 --> 00:14:32,580 | last candle that's the last green one when that candle is violated right there. Right here on this black one. Now you're going to be expecting price to expand |
78 | 00:14:32,580 --> 00:14:41,940 | on the downside. Price does it here trades a little bit lower? Can we have a small little retracement higher What's it trading back up into this down candle |
79 | 00:14:41,940 --> 00:14:51,270 | which is a breaker was it breaking the highs here where the initial sellers would be having their bikes not resting. And then we clear those out and we go |
80 | 00:14:51,270 --> 00:14:55,500 | lower. But this down countless where they're going to populate new selling |
81 | 00:15:10,320 --> 00:15:17,850 | You can see them selling it right here there's other mitigating the Long's they used to buy the price at higher they make they take those orders off and then |
82 | 00:15:17,850 --> 00:15:28,440 | you see the acceleration going lower all this area in here. Okay we have an up candle down move retracement back up into what what is this bearish order block |
83 | 00:15:33,780 --> 00:15:35,160 | so what this bearish order block |
84 | 00:15:40,830 --> 00:15:50,070 | Okay, bearish order block right in here trades up into and immediately sells off again? What's institutional order flow reaching for the stops below here? The |
85 | 00:15:50,070 --> 00:15:57,420 | why is this signal forming here? Why is this pattern forming because it's undoing the buys that was used here. Remember the down candle is a bullish order |
86 | 00:15:57,420 --> 00:16:06,630 | block, and they should be buying there and it does look at this boom explodes. This sell is unwinding the long stay put here, everything is a hedge on the |
87 | 00:16:06,630 --> 00:16:14,370 | interbank level. Okay, when you've seen price move from one level to the next, there's all buying and selling going back and forth in between those two range |
88 | 00:16:14,370 --> 00:16:23,730 | extremes range extreme down here range extreme up here. And that's another range extreme here. Another range extreme here and low range extreme here. Okay. So in |
89 | 00:16:23,730 --> 00:16:34,740 | between these two extremes, there's going to be hedging, there's going to be bookmaking where the bank can have a net bearish bulk here and be making money |
90 | 00:16:34,740 --> 00:16:43,200 | as it's going lower, but they have to be buying too. And while they still may see price going here and selling, they have to take the orders off that they use |
91 | 00:16:43,200 --> 00:16:51,600 | over here that are long. And so that's why you're seeing that unwinding right here, everything is going to be the opposite. So I go over to the left side of |
92 | 00:16:51,600 --> 00:16:59,790 | the chart and you'll see whatever they did to go along, they're going to take that off on the sell side, okay, which is the basis of a market maker cell |
93 | 00:16:59,790 --> 00:17:10,260 | profile, which is what this is, that's consolidation, return the consolidation, accumulation re accumulation of Smart Money reversal, low res short and |
94 | 00:17:10,260 --> 00:17:20,430 | redistribution. Now that redistribution in the market reaches below the consolidation or you're taking out those stops. Once the stops are cleared out, |
95 | 00:17:20,550 --> 00:17:30,630 | they're going to look for another layer layer of institutional order flow for the opposite side. Okay, so that's going to be in the form of the return back to |
96 | 00:17:30,630 --> 00:17:38,160 | this bearish order block which we shown on the monthly chart market trades up into that level here but between the point at which it hits here, and once it |
97 | 00:17:38,160 --> 00:17:46,260 | creates the run on the stops over here, we will be in any bullish institutional order flow or environment so we would expect to see the market trade back into |
98 | 00:17:47,400 --> 00:17:56,910 | down candles to be rebuilt. Now what's new buying should be seen there. This down candle rate for the move you can see the price in here two candles wycked |
99 | 00:17:56,940 --> 00:18:06,540 | down into this candle right here from the high down to the middle of candle wicks into it here in this it's kind of hard to see but that candles low comes |
100 | 00:18:06,540 --> 00:18:17,220 | in at 2151 So 2151 is below this candles low so it's down here and you can see that's what I'm highlighting right there. So the low it's inside this down |
101 | 00:18:17,220 --> 00:18:31,200 | candle so it's buying explain expand price at higher than 11 retracement. Okay price retraces trades into what? This up candle. So what's this? They sold here |
102 | 00:18:31,230 --> 00:18:43,080 | last up candle is they sold? Why did they sell there to dry price below these loads in here? So there's your urine on stops. So the up candle they used right |
103 | 00:18:43,080 --> 00:18:50,400 | here to get sellers below the marketplace with their cell stop. Why would they want to sell us because they sell starts to come market orders to be buyer |
104 | 00:18:51,180 --> 00:19:01,050 | counterparty to sell orders to sell stops below these lows. They will activate them and buy them. Smart Money will buy that once price trades through that |
105 | 00:19:01,080 --> 00:19:10,200 | it'll come back down and trade right back into the last candle. Why are they doing that? Because the shorts that they have on, they have to take those off |
106 | 00:19:10,410 --> 00:19:22,470 | and mitigate them. So this wick down to the body. Isn't mitigation block surprise comes down hits that level here. The shorts that they use when price |
107 | 00:19:22,470 --> 00:19:32,010 | was going up. Remember Smart Money sells as it goes higher. They drove it lower want to run the stops. Price trades through that candle are here. But their |
108 | 00:19:32,010 --> 00:19:39,300 | orders are underwater now as it's up here. So when price comes back down trades in that same range from the high down to the body of the candle. They can take |
109 | 00:19:39,300 --> 00:19:48,210 | those shorts off and buy them and then you're going to see explosive price action. Why? Because it's going to be buying a cover on shorts that are here and |
110 | 00:19:48,210 --> 00:20:01,680 | then buying more for new net long position and you'll see expansion aggressively and you see that here. Now you have down candle right before the move In a time |
111 | 00:20:01,680 --> 00:20:10,560 | when institutional order flow suggests prices should be bullish while we're in that shaded area price trades down into the bullish order block new buying |
112 | 00:20:10,560 --> 00:20:18,420 | should take place expand up now when we seen buying down here or would expect buying in here the reason my expectation would be to see price trade up to this |
113 | 00:20:18,690 --> 00:20:28,020 | candle first that's your first objective. Then above this high for stops and then expansion up into closing in this range here into this bearish order block |
114 | 00:20:28,020 --> 00:20:36,900 | which is last up candle comes back down by a bullish order block expected to run through here and then back up into the mirror monthly |
115 | 00:20:37,950 --> 00:20:44,610 | bearish order block and it does that handsomely here suites it out and then we can see what price break down again how do we know it's gonna be bearish because |
116 | 00:20:44,610 --> 00:20:53,250 | it breaks the last up candle at an area where we would expect to see bearishness breaks it here comes right back up at the bottom of this up candle retrace to |
117 | 00:20:53,250 --> 00:21:01,380 | it. You can be expecting downside movement in price price starts to break lower one more time read trades back up into this bearish order block for good measure |
118 | 00:21:01,830 --> 00:21:11,130 | breaks down now it's going to go lower trades up one more time works that same bearish order block here finally gives up the ghost and trades back up into this |
119 | 00:21:11,130 --> 00:21:25,440 | high here price rate trades lower reaches for the liquidity below here below the bodies of the candles over here over here by reaching down and then ultimately |
120 | 00:21:27,000 --> 00:21:37,020 | reaches below these lows and back down into the bullish order block right over here which is what we're seeing here. So if you start with your monthly and you |
121 | 00:21:37,020 --> 00:21:47,250 | break down into the weekly chart we can go down to a daily chart now you see a lot more definition on the daily chart bullish candles to the bearish order |
122 | 00:21:47,250 --> 00:21:58,530 | block because price drove lower retreats right back into the bearish order block right here bodies respecting the middle that up candle sell off market creates |
123 | 00:21:59,460 --> 00:22:10,860 | bullish order block rallies through clear and short term highs retraced back down to the last down candle bullish order block rally down candle the potion |
124 | 00:22:10,860 --> 00:22:28,410 | candle rallies up small little drop down hits the exact high that candle here high comes in 2802 the low on this candle comes in at 2795 into this bodies |
125 | 00:22:28,410 --> 00:22:40,860 | candle I'm sorry it's candles body rallies all the way up into bearish order block now again we're in a blue shaded area so while on a daily chart, it's |
126 | 00:22:40,860 --> 00:22:49,470 | dropping lower lower lower lower lower lower the institutional order flow and the monthly is telling you to get ready for buy. So we get down into these |
127 | 00:22:49,470 --> 00:22:59,310 | levels in here expect to see some buying but we have to wait for price to want to show a break above a short term high we see that short term high violated |
128 | 00:22:59,310 --> 00:23:08,460 | here so now we know buyers and market again wait for the come back down into that monthly bullish order block we see it trade in here but now look what |
129 | 00:23:08,460 --> 00:23:19,320 | happens this down candle here rallies away comes right back down into it now on a daily to the daily here it's that bullish order block and then look at the |
130 | 00:23:19,320 --> 00:23:30,600 | React look at the reaction expands quickly. Now we have this down candle draw that out in time buy here buy here rallies up this down candle key falling |
131 | 00:23:30,600 --> 00:23:49,410 | institutional order flow the highs 3436 The low is 3423 right into this down candle again buy it again boom explodes keeps going higher and higher heart goes |
132 | 00:23:49,410 --> 00:24:04,950 | into consolidation every new buying finds a down candle you go right back to the previous down candle here buy it again right price rallies again price dips back |
133 | 00:24:04,950 --> 00:24:17,160 | down into what does down candle here buy it again the down candles in here call one order block halfway point through that right there boom buy it again rallies |
134 | 00:24:17,160 --> 00:24:26,880 | through keep in mind of the monthly and weekly order blocks are seeing it again and here. You see the response boom it rallies that's why you don't see anything |
135 | 00:24:26,880 --> 00:24:35,670 | over here. Notice there's no bullish order block in here there's no any any kind of point of what you would see oh that's this is what that would they know it's |
136 | 00:24:35,730 --> 00:24:44,610 | found on the weekly and monthly that's why you see this response here. Price rallies away comes back down trades into bearish candle what's the bullish order |
137 | 00:24:44,610 --> 00:24:55,410 | block? Then something really did it trade right into the low 4626 into this order block right here and rallies again. You can see the shaded area we had |
138 | 00:24:55,410 --> 00:25:08,610 | again from the monthly rallies again explodes up in to multi bearish order block last up candle right here this one when it violates that, does it here expect to |
139 | 00:25:08,610 --> 00:25:20,310 | see bearishness wait for it, boom it breaks so when price breaks down, you're going to be waiting for a return back to a either a breaker or a bearish |
140 | 00:25:20,310 --> 00:25:32,790 | waterblock or he can look for a stop run on an old high so we're in an area where we'd expect to see markets continuously moving lower on a daily chart we |
141 | 00:25:32,790 --> 00:25:36,330 | can be using all these old lows to see price reach for them. |
142 | 00:25:36,930 --> 00:25:47,280 | Okay expand down so institutional flows suggesting lower prices especially for the monthly and the weekly now we're in a daily chart timeframe when institchu |
143 | 00:25:47,280 --> 00:26:00,570 | or flow should be weak or bearish. When the market creates a return back into a monthly order block here, it becomes a mitigation block on the daily chart |
144 | 00:26:01,260 --> 00:26:11,700 | because now we're unwinding what was used to be bought here which is a breaker was it breaking this old high that's what you're seeing right here you can |
145 | 00:26:11,700 --> 00:26:26,880 | clearly see it happening here on a daily chart but it was seen on a monthly and on a weekly all through here all through here in his red area every single time |
146 | 00:26:27,210 --> 00:26:38,940 | the market creates a new bearish order block or if it creates a run above old highs we see the old highs here runs through them sell off old highs in here |
147 | 00:26:38,970 --> 00:26:51,180 | runs above it sell off old high here runs above it sell off and we also have bearish waterblocks last up candle right for the down move sells off. Last up |
148 | 00:26:51,180 --> 00:27:02,820 | candle before the down move retrace back to it sells off. Last up candle even in a sloppy mess right to the bottom of the candle right there. But now we're in a |
149 | 00:27:02,820 --> 00:27:12,420 | bullish area on institutional order flow and you would expect to see all these levels which are being found on the monthly and the weekly look at the |
150 | 00:27:12,420 --> 00:27:21,180 | sensitivity that you see on the daily now we had this last down candle here right for that move price trades into it here and it's on a higher Time Frame |
151 | 00:27:21,180 --> 00:27:35,190 | order block down candle here as well. Buy it again. Buy it again price explodes look at the sensitivity right there. Again, this level was arrived at on the |
152 | 00:27:35,190 --> 00:27:49,860 | monthly and weekly look at the responsiveness you've seen price. And what's it reaching for liquidity above the Ojai in a bearish order block on the monthly so |
153 | 00:27:49,890 --> 00:27:59,850 | what you're doing is is what institutional order flow is it's the seeking of large institutional liquidity. And it's going to be found on the monthly and the |
154 | 00:27:59,850 --> 00:28:09,360 | weekly and you see that being traded into on the daily that's why I tell you on the daily chart and again this is what we're looking at daily the daily chart |
155 | 00:28:09,360 --> 00:28:18,540 | will always seek the fund level institutional order flow in other words, the stops that are found on monthly and weekly charts you're gonna see all your |
156 | 00:28:18,540 --> 00:28:26,460 | signals to have the greatest magnitude biggest moves to take place are always going to be found on that monthly and weekly basis because that's where all the |
157 | 00:28:26,460 --> 00:28:36,540 | large whales are. Okay when I say whales, I'm talking about big funds large funds okay and when they have money at risk that's where the markets gonna go |
158 | 00:28:36,540 --> 00:28:45,570 | because that's orders that they can counterparty with the banks cannot counterparty with you and I we just not big enough. Even collectively we're not |
159 | 00:28:45,570 --> 00:28:55,500 | big enough. But the funds because they're controlling billions and billions of dollars. And they're that's where the money's at. So if you can find the levels |
160 | 00:28:55,500 --> 00:29:04,290 | on a monthly weekly chart, keep them on your own your daily chart, you'll be able to see all these major shifts in price that sometimes jump off at you after |
161 | 00:29:04,290 --> 00:29:11,760 | the fact and you wish you would have known they were coming. Now you know how to see them by transposing them from the monthly the weekly into your daily chart. |
162 | 00:29:12,840 --> 00:29:22,470 | If you do your trading around these levels, you will see every significant price swing that they have returned to buyers on price. You'll see them coming before |
163 | 00:29:22,470 --> 00:29:31,770 | they get there. And you'll also know relative to institutional flow where the stops or liquidity is above the marketplace when you're any buy it or when you |
164 | 00:29:31,770 --> 00:29:39,870 | expect a bullish scenario unfold. You'll already know where the market should be reaching for should it take off and start trading higher. When it goes up to a |
165 | 00:29:39,870 --> 00:29:47,250 | level of resistance or some kind of bearishness before you even sell short you're going to know where it's gonna be reaching for which is to sell stocks |
166 | 00:29:47,250 --> 00:29:56,190 | below the recent lows or a bullish order block. And by having an idea how the market will continuously look and seek liquidity. It's not our liquidity. It's |
167 | 00:29:56,190 --> 00:30:04,050 | not our stops it's looking for it's looking for the stops found on a monthly in the weekly and daily, because that's where the whales reside. That's where the |
168 | 00:30:04,050 --> 00:30:12,060 | large funds reside. And that's what pushes price around. Understanding that that's why the market will go to these levels because it's wanting to take those |
169 | 00:30:12,060 --> 00:30:22,230 | participants either out of the marketplace or draw them in as counterparties to their intended purpose. Either being a buyer counterparty to sell stops, or to |
170 | 00:30:22,230 --> 00:30:30,780 | be a seller counterparty to buy stops. And that's the nature of institutional order flow. So with that, guys, I wish you good luck and good trading |