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 ??

It’s not difficult to track their order flows.

You can easily differentiate between retail traders order flow behavior and financial institutions order flow behavior.

Learn to pick high probability setups within a few minutes.

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

The 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 the left side of your chart

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 a daily interval time frame chart and marked the first extreme big move.

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 an 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 an institutional selling zone.

My trading action on this stock and reason

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

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

But as I need a 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 an 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 an 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 then 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 lines and take a buy trade when prices reach 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:

The 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.

How do you track financial institutions directions ??

Use the comment section below and let me know your view.

And which topic do you want me to write next time which can improve your trading overall?

Learn to trade and invest like professionals in stock markets with our advanced online trading course. View complete stock market course details here.

14 thoughts on “Direction Of Big Financial Institutions-Learn To Pick high probability setups”

  1. But Many times I observed once institutions starts buying or selling, stock price hardly come to buying or selling zone, then in that case what is the probability that our entry 10 points above buying zone or 10 points below selling zone will takes place

    • Hi Tushar. It’s not like that. Many times prices come inside the zone. Institutions orders do not get filled at one time. Only quantities of stocks available at that time get filled. And these institutions get interest rate for creating liquidity in the markets. So easily they don’t remove there pending orders and it will remain in pending status for many months. The point I want to say here is, prices come to the zone but it won’t come very fast or when you expect.

    • We are using the beginning of the move as a support or resistance area. So we are not trying to predict next move but anticipating our entry with what data we have.

  2. Axis Bank chart down from upper side with huge selling pressure but here not seen selling candle( as you mention in chart). please explain

  3. Hello @stockwizaards. Your blog was awesome. I know any indicator doesn’t make any sense. But sir how we track 30-40 stock its not manually possible.can you suggest any scanner or alert that give signal with respect to large volume. Please give me answer.

    • Hi Santosh. Its manually possible to track all stocks manually also.The best approach to reduce the work load will be to do smart work.When you are looking for buying opportunity,look for top losers in nifty.Stocks that are dropping in prices are the once which could potentially reach demand zones or support area.And same way you can track stocks under top gainers in Nifty or NSE. Stocks making continuous highs are the ones which are nearing previous resistance level or supply zone.If there is no previous zones,these stocks making new high have highest chances of creating a new resistance level when profit booking happens.This will reduce a lot of time if you don’t want to scan all stocks.Hope you got your answers.Thank you.

Leave a Comment