Institutional Order Flow: Follo Smart Money Footprints


Institutional Order Flow involves tracking the moves of smart money, like banks and big hedge funds, and adopting a simple trading strategy based on the direction they’re going.

In this blog post, You will learn with examples of how to follow the Institutional Order Flow and inner circle trader concepts that help to trade in the direction of smart money

What is institutional Order Flow?

Institutional Order Flow refers to the process of analyzing and trading alongside the orders of large institutions, such as banks and hedge funds.

These institutions are often referred to as “smart money” due to their sophisticated trading strategies and access to superior information.

By understanding and following their order flow, traders can potentially gain valuable insights into the direction of the market and make informed trading decisions.

Key Concepts:

  1. Market Imbalance: Institutional orders can create significant imbalances in supply and demand, which can drive the market in a particular direction.
  2. Smart Money Footprint: Analyzing the order flow of these institutions can reveal their intentions and provide clues about future market movements.
  3. Bullish & Bearish Flows: Institutional order flow can be classified as bullish (indicating upward pressure) or bearish (indicating downward pressure).

Types of Institutional Order Flow

Bullish Institutional Order Flow

In Bullish order flow the price moves in an upward direction and respects the Bullish Order Blocks and Bullish Fair Value Gaps. The main aim of smart money is to sweep the buy side liqui

Pillars of Institutional Order Flow

  1. Liquidity
  2. Order Blocks
  3. Fair value Gaps

 

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