Institutional Order Flow

Understanding how institutions move markets gives you massive edge.

How Institutions Trade


Their Problem

• Massive order sizes
• Cannot fill at one price
• Would move market against them

Their Solution

• Break orders into pieces
• Use algorithms
• Manipulate to get fills

Order Flow Concepts

Accumulation

• Buying quietly during ranges
• Big move follows

Distribution

• Selling at highs
• Reversal follows

The Hunt Pattern

1. Price takes out obvious level
2. Retail stops triggered
3. Institutions enter opposite
4. Price reverses sharply

Trading With Institutions

1. Mark previous day high/low
2. Watch for sweeps of these levels
3. Look for reversal after sweep
4. Enter with the reversal

Key Takeaways

1. Institutions need liquidity
2. They hunt retail stops
3. Trade AFTER the hunt
4. Patience is essential