US Dollar Index-Definition And Tricks For Traders To Use It

Ever heard about US Dollar Index before ?? If you are a forex trader,than you might have heard.

Similar to stock index and commodity index we also have a reference index for UNITED STATES DOLLAR.

You can trade or hedge your positions using its derivative products.

But what is US Dollar Index ??

US Dollar Index is a barometer or reference for USD and provides its global strength information.

As a trader and investor you might be already aware about various indices including US Dollar index .

If its prices goes up we say USD is strengthening and if it goes down,we say USD is becoming weak.

You can do trading in its derivative products like ETF’S or future contracts etc.

History

US Dollar Index was first introduced by federal reserve in 1973 with a base point of 100.

All time high and low

It made a all time high of 163.83 on 05-March-1985 and all-time low of 71.58 on 22-April-2008.

Calculation of US Dollar Index

Its value is calculated by its change in price with respect to six other currencies.

Currencies involved in measuring dollar changes are Euro (EUR), Japanese Yen (JPY),Canadian Dollar (CAD),Swedish Krona (SEK) and Swiss Franc (CHF).

Spot and Future Symbols

Spot of dollar index is denoted by DXY and futures contracts are denoted by USDX

Conclusion:

Like all other indices US Dollar Index is also important to track and it can provide additional knowledge benefits to the traders.

NIFTY Falls 200 Points And Sensex Falls 700 Points

NIFTY on Thursday opened at 10169.80 roughly 300 points down from the previous day closing of 10460.10.

Today was BANKNIFTY weekly options expiry day.

Recovery of more than 100 points in nifty is seen at closing session.

NIFTY  Market Heat Map

You can see below,other than NIFTYCPSE,NIFTYPSE,NIFTYENERGY AND NIFTYQUALITY30 all other sectors remained negative during the day.

NIFTY market heat map

NIFTY top gainers today

NIFTY-top-gainers-today

HINDPETRO was the highest gainer among NIFTY stocks with more than 16 % gains.

NIFTY top losers today

NIFTY-top-losers-today

IBULHSGFIN was the biggest looser today among NIFTY stocks with more than 9 % loss.

Highest change in open interest increasing

TCS 25-OCT-2018 PE 1940 had highest increase in open interest.

highest-change-in-open-interest-increasing

From 28-Aug-2018 NIFTY has corrected more than 1500 points i.e. more than 12 % drop.

 

Best Tips For Converting Intraday/Day Trading Stocks For A Longer Period

Do you want to convert your day trading position to the next trading day ??

If your answer is yes than read following tips below.

When you day trade,there might be few extraordinary profitable trading days,when you want to hold and carry those stocks or derivatives etc to the next trading day.

If you expect more profits from the same position,you might look to extend the position.

Type of orders to use when converting or retaining a day trading position to the next trading day

When you day trade,mostly all broker provide different types of order.

One type of order is for investment purpose and other type could be for day trading.

It depends on what order you have placed.

With some stock brokers like sharekhan,zerodha etc you have separate order types for intraday/day trading like big trade orders,MIS order etc.

These orders are for intraday only which gets squared off automatically.

So if you want to hold same stocks for next day,you can cut the position placed with intraday orders and place a new order with investment mode.

If you want to carry forward your stop loss order for next day,you can use gtc orders or MYGTD and in MYGTD orders you can specify a date within next 30 days.

So your orders remain valid for next 30 days with target and stop loss fixed.

Below you can see big trade order image reference with bracket orders.This is for intraday/day trading.

 

day trading position to the next trading day

 

Here is another image showing investment type orders with my GTD bracket orders.

You can keep stop loss orders active for next 1 month.

This is very useful for investors.

Conclusion:

Converting or retaining a day trading position to the next trading day is done by changing the order types.

Usually good traders don’t look to carry forward there positions,unless they have made good profits in day trading itself.

If you expect a gap opening in direction of your trades,then carrying forward your intraday/day trading position makes sense.

Stock Market Corrections Top 7 Signs To Make You A Better Trader

Today I am going to show you top 7 signs which I use to  predict stock market corrections.These top 7 corrections signs will make huge difference in your trading and investing career once you start following them.

1.Previous swing levels

Yes the first one is previous swing levels.You have to use them as a support and resistance.Look below how this stock fell down from the high.

 

stock-market-corrections-previous-swing-levels

 

So did you have any clue that it could fall from that level ?? Answer is absolutely yes.

Now look at the below chart.On the left hand side of this chart,you have a previous swing high which could act as a resistance now.

 

stock-market-corrections-previous-swing-levels

 

Now take a look at next swing high in below image.You will find again the previous swing high acted as a resistance.

 

stock-market-corrections-previous-swing-levels

 

This also works with support levels.Take a look below how previous swing low acts as a support level.

 

stock-market-corrections-previous-swing-levels

 

So by looking at above example,you should consider all swing highs and swing lows as a good area of resistance and support.Possible corrections might happen at these levels.It can be new fresh order or profit booking.

Now lets look at second type of stock market corrections.

 

2.Volatility Index

Volatility Index is most important factor to understand in trading and investing.If you are an derivatives trader and like to trade in futures and options,than following explanation will further improve your skills.

Look for volatility index bottoms when markets are making new high

Lets say your markets volatility index is considered to be at top when it reaches a certain value.For below example I am using Indiavix.

Indiavix is the leading volatility index for Indian stock markets.

Top and bottom price levels for INDIAVIX

We have selected ranges to keep INDIAVIX simple.

Bottom price levels-12-10-Potential market top

Top Price levels-14-16-Potential market bottom

Volatility index acts opposite to the market index.

Look below,what happened in market after volatility index touched its bottom price levels.

 

stock market correction-picking tops

 

NIFTY index was making lifetime high on 13th June 2018.At the same time INDIAVIX touched the bottom level range of 12-10.After this,correction happened in NIFTY.

When markets are making low,look for volatility index tops

 

stock market corrections

 

On 23rd MAY 2018 NIFTY index was making lows in an correction mode.At the same time INDIAVIX touched the top level range of 14-16.After this,NIFTY ended its correction and started moving up.

So with this we can conclude that understanding volatility can help you in identifying tops and bottoms of your markets.Before a correction happens you will see the potential signs of correction.

 

3.Change in open interest increasing or decreasing

Open interest is open contracts available in markets.

So if a particular derivatives contracts moves a significant move,followed by decrease in open interest,its time to become cautious.

Take a look at below example.

 

stock-market-corrections-open interest decreasing example

 

This is a NSE stock M&MFIN.Future contract open interest is decreasing and its stock prices started moving up.

Now lets look at another example where future contracts open interest started increasing and stock prices also increased.

 

stock-market-corrections-open interest increasing example

 

As you can see I have shown the same stock example again in the above image.

So if you are getting confused with this take a look clearly.Both the images are of same stock.But the difference is there contract expiry.

In the first image you have M&MFIN OCT contract and in the second image you have M&MFIN NOV contract.

Trick here is to understand that institutions were selling the nearest contract that is October month.

As soon as they realized market sentiment as bullish they exited from there short positions and hence we noted decrease in open interest of October month derivatives contract.

And increase in November month contract open interest gives a bullish sentiment about this stock.

So you can now use this logic with your trading strategy.

 

4.Stocks nearing its monthly option chain support and resistance

Option chain is the easiest way to identify support and resistance of stocks having derivatives contracts.

Strike price of highest call option open interest is your resistance and highest put option open interest strike price is your support.

As per open interest

Resistance-Strike price having highest call option open interest

Support-Strike price having highest put option open interest

As the prices of stocks or index futures nears its support and resistance price levels as per option chain,you could see a correction or rebound from those levels.

 

5.Trend change in lower time frames near support and resistance

Lower time frames is where the trend first starts to change.For example a 15 min chart could give first indication of trend change.

Than a 30 minute chart could confirm the trend change,followed by 60 min and than in daily chart time frame.

Take a look below at VEDL NSE stock.Daily chart of this stock has given an uptrend breakout.

 

stock-market-corrections-trend-change-in-progress-daily-time-frame

 

This stock is down for more than a year now.But can we buy this stock at these price levels ??

Lets look at lower time frames charts like 15 min,30 min and 60 min.

If all these time frames have uptrend as correlation,than it might be a good bet to buy this stock.

So first let’s look at 15 min time frame chart below.

 

stock-market-corrections-trend-change-in-progress-15-minute-time-frame

 

A 15 min chart has many swing low and high points.But in overall VEDL NSE stock looks strong and moving upside.

Same is the outlook for 30 min and 60 min time frame charts of this stock.

 

stock-market-corrections-trend-change-in-progress-30-minute-time-frame

 

Do remember this,a combination of higher highs and higher lows is a strong uptrend confirmation.Now check 60 min time frame chart below.

 

stock-market-corrections-trend-change-in-progress-60-minute-time-frame

 

All minor time frames correlate with each other in this uptrend formation.

I might get stopped out if prices go down from here and hit my stop loss price.But I think I have done good technical analysis on VEDL NSE stock and added it in my portfolio.

 

6.Sudden shift in buyers and sellers quantity

Below is the daily chart of NATIONAL STOCK EXCHANGE INDEX NIFTY.It was continuously falling down.So as a retail trader,we have a tendency of thinking opposite things.

 

Stock market corrections-nifty futures chart

 

So you might think of market ending its correction and going up.

On the next trading day,retail trader might have had bullish opinion about markets.

Nifty index future contracts were beginning to make a green bullish candle.

We had more buyers on nifty futures than sellers.Take a look below.

 

stock-market-corrections-buyers-and-sellers-change

 

Buy quantity had 241500 contracts and sell quantity had 101625 contracts in NIFTY futures.

All of a sudden,we started seeing more number of selling contracts and buying contracts increasing further.

In below image you will find NIFTY buyers and sellers quantity change on left side.

On the right side we have BANKNIFTY index chart.

 

stock-market-corrections-buyers-and-sellers-change-2

 

At this movement number of sellers in NIFTY index has increased and guess what happened ??

Whole market crashed further.During this drop,number of buyers drastically decreased.

 

stock-market-corrections-buyers-and-sellers-change-3

 

The bullish green candle which looked like a rebound,completely changed to a very negative bearish candle.

So its always better to trade with conservative approach and avoid being aggressive in markets.

 

7.Highest high and lowest low candles/Bars changing colors

This is the most neglected type of candlestick pattern.Take a look at below image.This is chart of NIFTY index in daily time frame.

After making a swing high we saw price rejection or profit booking which took the price lower and made a bearish reversal type red color candle.

 

stock market correction highest high and lowest low candle colors

 

If you look at highlighted low point where the candle color changed to green,what do you think might have happened ??

Profit booking and new fresh buying orders could have made bullish green candle when it made swing low point.

And after that candle,prices started moving up.

So this candlestick colors combined with support and resistance levels works very well.

In addition to this you should use other confirmations like candlestick patterns or any other indicator to increase the accuracy.

Conclusion:

I have picked top 7 signs of stock market corrections which can really help you in improving your trading decisions.

So use these corrections and let me know how it changed your trading and investing approach by adding a comment below.

IOC NSE Stock Candlestick Charts Technical Analysis

 

IOC(INDIAN OIL CORPORATION) is the pioneer in refining,transportation and marketing of petroleum products in India.

For investing in any stocks,you need to look at large picture before adding it to your portfolio.
We look at larger time frames like quarterly and monthly charts before taking a decision.So below is a look at quarterly time frame chart.

 
>

IOC(INDIAN OIL CORPORATION) Quarterly Chart Analysis

 

IOC-Quarterly-Time-Frame-Chart-Analysis

 

The quarterly charts  gives us a fair idea that this stock is in correction mode.Current price levels can be described as retail price levels.

You need to buy stocks at wholesale price levels and sell at retail price levels to other retail traders.This is what big institutional traders do.For better understanding of wholesale levels and retail levels look at simple diagram below.

 

stock-market-wholesale-and-retail-price-level-explanation

IOC Quarterly time frame intermediate swing fibonacci levels

Below you can see that current price levels of IOC is trading inside quarterly 50%-61.8% retracement levels.

 

IOC-Quarterly-Time-Frame-Chart-Intermediate-Swing-Fibonacci-Levels

This could be a reversal area for IOC.

Majority of stocks ends its correction mode once they reach crucial 50% and 61.8 % fibonacci retracement levels.

Any stock correcting below these crucial levels are not considered appropriate for buying.But if we take larger swing into consideration,we are also getting different fib levels.

Quarterly time frame larger swing fibonacci levels

When larger swing is taken into consideration,we have 50%-61.8% levels as 139-117.This entire region should be considered as support levels.

 

IOC-Quarterly-Time-Frame-Chart-Larger-Swing-Fibonacci-Levels

So if we combine both intermediate and larger swing fibonacci levels we get entire support zone of 159-117.As per weekly charts,we have started to see some buying.

 

IOC-Weekly-Time-Frame-Chart-Analysis

The current candle in progress is not looking good for buy.

So we need strong bullish candle in monthly to consider this stock for buying.

Current monthly candle of IOC signifies price rejection at lower levels.

As it made low,more buyers bought and took the prices up.

 

IOC-Monthly-Time-Frame-Chart-Analysis

If you buy IOC at current price,you should keep a stop loss of 145.55 which is current month low.

IOC weekly time frame chart support level

We have take the entire previous swing area as support levels for IOC.

Right now it looks like taking support from current levels.

 

IOC-Weekly-Time-Frame-Chart-Support-Level

More conservative approach on IOC will be entering with trend line breakout.

 

IOC-Weekly-Time-Frame-Chart-Trend-line-analysis
 

IOC (INDIAN OIL CORPORATION) Buy Or Sell ??

Aggressive buyers can buy at current price keeping stop loss of 145.55.

More conservative traders can wait for trend line breakout in weekly charts to buy.

If you are an investor,you should wait for one more bullish candle in monthly.

Conclusion:

IOC is now in correction mode and inside support levels.It has buying opportunity for aggressive traders right now.

ZEEL NSE Stock Candlestick Charts Technical Analysis

ZEEL stands for Zee Entertainment Enterprises Limited is a global media and entertainment company.They are one of the pioneer in television broadcasting, movies, music, live entertainment and digital businesses.

For investing in any stocks,you need to look at large picture before adding it to your portfolio.
We look at larger time frames like quarterly and monthly charts before taking a decision.So below is a look at quarterly time frame chart.

 

ZEEL Quarterly Chart Analysis

 

ZEEL-Quarterly-Time-Frame-Chart-Analysis

 

The quarterly charts  gives us a fair idea that this stock is in correction mode.Current price levels can be described as retail price levels.

You need to buy stocks at wholesale price levels and sell at retail price levels to other retail traders.This is what big institutional traders do.For better understanding of wholesale levels and retail levels look at simple diagram below.

 

stock-market-wholesale-and-retail-price-level-explanation
 

Fibonacci retracement levels of ZEEL as per quarterly time frame

We use fib retracement levels to check strong support areas or levels till which a stock can correct itself.

 

ZEEL-Quarterly-Time-Frame-Chart-Fibonacci-Retracement-Analysis

 

Fibonacci retracement levels of 61.8%,50% is yet to reach and 38.2% is being tested right now.

Any break below 399.35( fib retracement 38.2% levels) can further move the prices towards 331.60 and 263.65 levels.

Big red candle signifies a strong selling in ZEEL right now.
 

Monthly Chart Analysis

Again in monthly time frame it’s in correction mode,but taking support from previous resistance became support zone.
 

Monthly Trend Analysis using trend lines

In monthly time frame ZEEL is in clear downtrend based on trend line analysis.But we also have multiple support levels in monthly time frame.

 

ZEEL-Monthly-Time-Frame-Chart-Analysis

 

On 31-Aug-2018 ZEEL confirmed its downtrend based on trend line analysis.

 

ZEEL-Monthly-Time-Frame-Chart-Trendline-Analysis

 

Multiple support levels on monthly charts

Sticking to one zone in ZEEL is very tricky.It has four support zones in monthly charts.We don’t know which one it respects and moves up.We have to wait for a strong buying indication in this stock.
 

First monthly support level

Current price levels is inside the first monthly support levels i.e.-467.90-427.65.If ZEEL shows any signs of going up from this level we can buy it.Till we see a strong buying in this stock,its better to avoid this stock to include in portfolio.

 

ZEEL-Monthly-Time-Frame-Chart-First-support-level

 

Second monthly support level

Slightly below fist support levels we have second monthly support levels also.
 
ZEEL-Monthly-Time-Frame-Chart-Second-support-level
 

Third monthly support level

This is third support level for ZEEL.This stock has multiple support levels and you should focus on all support levels combined as a buying zone.If we start seeing bullish candles,you can keep strict stop loss and buy it.
 

ZEEL-Monthly-Time-Frame-Chart-Third-support-level
 

Fourth monthly support level

This is fourth support level for ZEEL and is very crucial.Prices can pull back till this level before going up further.If you hold this stock in your portfolio,you can exit now and buy it back after a strong correction.
 

ZEEL-Monthly-Time-Frame-Chart-Fourth-support-level

 

Weekly Time Frame chart analysis

It is trying to bounce back from the first monthly support levels.But till now overall scenario in this stock looks downside.

 

ZEEL-Weekly-Time-Frame-Chart-First-support-level

 

Now take a look below how it is forming lower highs and lower lows.This confirms us downtrend in weekly time frame.

 

ZEEL-Weekly-Time-Frame-swing-trend
 

ZEEL Buy Or Sell ??

We are seeing a correction phase in this stock as per our technical analysis.Still there is no strong signal to buy.So any individual looking to buy ZEEL should wait for now.

Conclusion:

Sticking to one zone in ZEEL is very tricky.It has four support zones in monthly charts.We don’t know which one it respects and moves up.We have to wait for a strong buying indication in ZEEL.

Adaniports NSE Stock Candlestick Charts Technical Analysis

ADANIPORTS AND SPECIAL ECONOMIC ZONE LTD is India’s largest port company.

For investing in any stocks,you need to look at large picture before adding it to your portfolio.
We look at larger time frames like quarterly and monthly charts before taking a decision.So below is a look at quarterly time frame chart.

 

 

Adaniports Quarterly Chart Analysis

 

ADANIPORTS-Quarterly-Time-Frame-Chart-Analysis

 

The quarterly charts  gives us a fair idea that this stock is in correction mode.Current price levels can be described as retail price levels.

You need to buy stocks at wholesale price levels and sell at retail price levels to other retail traders.This is what big institutional traders do.For better understanding of wholesale levels and retail levels look at simple diagram below.

 

stock-market-wholesale-and-retail-price-level-explanation

Quarterly time frame support levels

Below you can see that current price levels of Adaniports is in previous resistance became support level.Break of this level can led to further downside movement in.

 

ADANIPORTS-Quarterly-Time-Frame-Chart-Previous-Resistance-Became-Support-Level

Fibonacci retracement levels of adaniports as per quarterly time frame

We use fib retracement levels to check strong support areas or levels till which a stock can correct itself.

 

ADANIPORTS-Quarterly-Time-Frame-Chart-Fibonacci-Retracement-Analysis

 

Fibonacci retracement levels of 50% and 38.2% is being tested right now.

If it stays above these levels,we might see its prices going further up making new highs.

Adaniports Monthly Chart Analysis

Again in monthly time frame it’s in correction mode,but taking support from previous resistance became support zone.

Monthly Trend Analysis using trend lines

Its in neat and clean downtrend in progress now.On 28th March 2018 we confirmed monthly downtrend in Adaniports using trendline analysis.

 

ADANIPORTS-Monthly-Time-Frame-Chart-Trendline-Analysis

Weekly Time Frame chart analysis

Its in continues downtrend and making lower highs with lower lows.So till it makes higher high and higher low,we should be little cautious in buying Adaniports stock.

 

ADANIPORTS-Weekly-Time-Frame-Chart-Swing-Trend-Analysis

Adaniports Buy Or Sell ??

Its clearly a wait and watch period in Adaniports based on our technical analysis.Still there is no strong signal to buy.So any individual looking to buy Adaniports should keep a stop loss of 316.55 which is current month’s low.

Conclusion:

Adaniports is now in correction mode and we never know till what price level it can correct.A smart trader and investor should use shorting opportunities in Adaniports till it gives an uptrend indication.

Direction Of Big Financial Institutions-Learn To Pick high probability setups

Did you know that you can trade in the direction of big financial institutions ??

Learn to pick high probability setups within few minutes.

I am going to explain how I pick the sweet spot to trade institutional order flows.

First step is observing big financial institutional direction.

Read our post on how to identify institutional buying and selling before continuing with this informative post.

Step 1-Look for big moves on your chart left side

Open any chart you want to do technical analysis.

Now keep looking on the left side for an extreme big move either up or down.

You can choose any time frame you want.

I have selected daily interval time frame chart and market the first extreme big move that I see.

 

Direction-Of-Big-Financial-Institutions-step-1

 

Step 2-Mark the first candle from which this big move started with two horizontal lines

You can see below I have marked the candle with arrow.According to me this candle was the beginning of the entire big move by institutions.

 

Direction-Of-Big-Financial-Institutions-step-2-

 

Now I have marked the entire candle with two horizontal lines.

 

Direction-Of-Big-Financial-Institutions-step-2-Marking-With-Horizontal-Lines

 

I call this as institutional selling zone.

My trading action on this stock and reason

This stock is in downtrend on daily and weekly time frame.

As markets are also falling from past few days,my trading action on this stock will be selling or shorting it.

But as I need high probability trade setup,I am going to short this at institutional selling zone levels.

Adding price alert to trade in the direction of big financial institutions

I will add alert on this stock just 10 points or down from this selling zone.

My trading platform will show me popup alert,the moment it crosses my marked alert price.

High of the marked candle is 388 and low is 377.10.

So I have added a alert at 367.10 on this stock.

Direction-Of-Big-Financial-Institutions-adding-price-alert

So the moment prices reach 367.10,I will get an alert.

To trade a short position,either I will short this stock when it reaches the selling zone or i will wait for it to reach inside the zone and than go out of the zone by 1 point or 1 tick below the zone.

Buying in the direction of big financial institutions

Same way you can find out an extreme move upside.

This zone will be called as institutional buying zone.You can mark the entire zone with two horizontal line and take a buy trade when prices reaches again the same zone.

Take a look below.

 

Direction-Of-Big-Financial-Institutions-Buying-Zone

 

The moment prices entered this buying zone it moved up.So this type of zones will be very useful for traders looking for quick movements of price.

Conclusion:

Direction of big financial institutions can help you in improving your trade success.Possibilities of unfilled order quantity in these zones are high.

This is why I call this high probability trade setups.

You can combine this with your existing strategy and build a trading system.

So would you like to learn more about institutional trading setups ??

If yes than our premium level 3 trading and investing course is for you.You can contact us to enroll today.

 

 

Financial Institution-Definition And Types

So what are these Financial Institutions ?? Basic definitions and types of Financial Institutions and what they do- the training activity they carry inside the institution is what we are going to discuss in this post.

Who are financial institutions ??

Financial institution is a company which deals in transactions of  financial securities.

These financial securities can be stocks,derivatives,swaps,bonds,currencies etc.

Two main categories of Financial Institutions

1.FII’S

2.DII’S

The FII’S stands for foreign institutional investors and DII’s stands for domestic institutional investors.

 

How To Identify Institutional Buying And Selling

By identifying institutional buying and selling levels,you will be way ahead of other traders.Your price chart clearly shows who is behind a price change-Institutions or Retail traders.

After reading this post you will be able to identify institutional buying and selling inside your regular price chart.

Look for stocks nearing trend change

Institutional investors are much interested in buying stocks which refuse to go down further.

What I mean by this is,stocks which have very less seller’s after a big correction or fall could produce a interest of buying for institutions.

Stocks nearing trend change will have less sellers and will look like trading in a range.

Look at below chart.

 

institutional-buying-example

 

This is a NSE(NATIONAL STOCK EXCHANGE) stock VEDL.

This stock almost looks exhausted with the downtrend.

It looks like,at this point people willing to sell are less.We can expect that institutions might be interested to buy at these levels.

After a long period of downtrend continuations,if the underlying asset have strong fundamentals,institutions will be interested in buying.

It doesn’t mean prices of that underlying asset will keep on increasing for life time.

For a while after institutions buy the asset,prices might shoot up.

But for continuous upside movement of price,you need more and more people buying it over a period of time.

Below is another example where institutions started buying a stock which was in downtrend for more than a year.

Within 6-7 trading days,stock prices made a move of more than 40 %.

 

institutional buying and selling example

 

Trend is clearly changed by the institutions.Look at the big move.

This is not possible by normal retail traders.

Big candle size=institutional buying and selling

Look at candle size in same above example.Its not an ordinary size candle.This type of big candle is clear indication of institutional buying.

 

institutional buying and selling example

 

Large volume with sudden price change indicates institutional buying and selling

As you can see from the above shown example of NSE stock IDEA,take a look at the volume.

 

institutional-buying-and-selling-volume-example

 

So volume will be high when institutional buying or selling happens.

Now the question is how do you enter with the direction of institutional buying or selling ??

On conclusion section of this post you have a link to the post which shows you how to trade in big institutions direction.

Ordinary volumes could be an indication of amateur retail trading.

Before seeing the spike in volume,previous volumes were normal in size.Check normal volume size below.

 

institutional-buying-and-selling-small-volume-example

Sometimes you might see high volumes but not much change in price.This indicates heavy trading was done for the day on the underlying asset.This type of volume is not indication of institutional positional buying.

 

Conclusion

Now you have seen top 3 ways of identifying institutional buying and selling.

You need to trade in there direction for consistent results.

To take trades in direction of institutions,you have to read our another guide Trade in the direction of big institutions.

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