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.

Here is another example.

 

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.

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

 

Conclusion

So you have now 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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