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ICT Mentorship Core Content - Month 03 - Institutional Order Flow
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ICT Mentorship Core Content - Month 03 - Institutional Order Flow

Institutional Order Flow Analysis

In this section, the speaker delves into institutional order flow analysis using the euro dollar example to illustrate key concepts and strategies.

Understanding Liquidity and Market Behavior

  • Liquidity pockets below lows indicate a significant area of cell stops.
  • Institutional order flow involves identifying maximum liquidity levels concerning past market movements.
  • Market rebalances by closing gaps created by previous price actions.

Candlestick Analysis and Price Movement

  • Focus on candle bodies for institutional volume rather than wicks representing retail stops.
  • Analyzing candle bodies helps in understanding true volume from an institutional order flow perspective.

Price Action and Trading Strategies

  • Expect price to trade towards areas with significant liquidity, such as below lows, based on candle body analysis.

Understanding Market Dynamics

In this section, the speaker delves into analyzing market movements and identifying potential trading opportunities based on market structure and order blocks.

Analyzing Market Structure

  • The speaker discusses identifying a potential market top and the importance of recognizing key levels for trading decisions.
  • Emphasizes the significance of liquidity zones and institutional order flow in determining price movement.
  • Highlights how price interacts with candle bodies to seek liquidity and capitalize on order blocks.
  • Discusses the expectation of price movement towards specific levels based on institutional order flow dynamics.
  • Explains how institutional overflow influences market direction and identifies areas where price is likely to rally.

Institutional Order Flow Analysis

This segment focuses on understanding institutional order flow shifts and their impact on market sentiment.

Institutional Order Flow Dynamics

  • Describes the transition of institutional overflow from bullish to bearish based on price behavior around key levels.
  • Illustrates how candle bodies play a crucial role in determining market sentiment and directional bias.
  • Discusses adapting analysis from monthly to weekly charts for a more detailed perspective on market conditions.
  • Maps out the Euro Dollar pair over several years by leveraging monthly levels for strategic insights.
  • Stresses the importance of identifying critical points in trading based on higher timeframe analysis.

Price Action Signals and Trading Strategies

This part delves into interpreting price action signals, anticipating market movements, and formulating effective trading strategies.

Price Action Interpretation

  • Analyzes a bearish order block scenario, highlighting retracement patterns and potential downward price expansion.
  • Explores buying zones within bullish price territories before reaching significant bearish order blocks.

Detailed Analysis of Trading Strategies

In this section, the speaker delves into the intricacies of trading strategies, focusing on concepts like bearish order blocks, institutional overflow, and smart money actions.

Understanding Bearish Order Blocks

  • The bearish order block is a critical concept where trades move into it and immediately sell off. This pattern signifies a reversal of bias used in previous trading actions.

Smart Money Actions and Price Movements

  • Price movements between different levels indicate buying and selling activities by smart money. These actions involve unwinding long positions to mitigate risks.

Institutional Order Flow Dynamics

  • Institutions engage in hedging and bookmaking between range extremes to manage their positions effectively. This process involves buying and selling to balance their books.

Micro Maker Sell Profile

  • The speaker discusses the micro maker sell profile, emphasizing consolidation, accumulation, smart money actions, low-risk shorts, redistribution phases, and market dynamics related to institutional order flow.

Market Reversals and Price Action

  • A bullish institutional overflow environment suggests price movements back into down candles for re-buying opportunities. Understanding these patterns aids in predicting market behavior.

Strategic Trading Moves for Profit Maximization

This segment focuses on strategic trading moves that maximize profits through understanding market dynamics such as stop runs, short covering, and price expansions.

Mitigation Blocks for Short Positions

  • Mitigation blocks play a crucial role in managing short positions by allowing smart money to unwind shorts at specific price levels. This action leads to explosive price movements.

Expansive Price Actions

  • Expansive price actions occur when smart money covers existing shorts while simultaneously establishing new long positions. This strategy results in aggressive price expansions.

Predicting Market Directions

  • Analyzing down candles before up moves helps predict bullish trends during institutional overflow periods. Traders can anticipate upward price movements based on specific market behaviors.

Strategic Buying Opportunities

  • Identifying bull shoulder blocks presents strategic buying opportunities as prices are expected to rise towards previous high points. Understanding these patterns aids traders in maximizing profits.

Reading Market Signals

New Section

In this section, the speaker analyzes the daily chart, focusing on candle patterns and order blocks to predict market movements.

Analyzing Daily Chart

  • The daily chart reveals a bullish candle within the bearish order block, indicating a potential price increase.
  • Price retraces back into the bearish order block before respecting the middle of an upward candle during a sell-off.
  • Market creates a bull shoulder block, rallies through clearing short-term highs, then retreats back down to the last downward candle.

New Section

This segment delves into institutional overflow signals on monthly charts and anticipates buying opportunities based on price behavior.

Institutional Overflow Signals

  • Lower lows signal institutional overflow on the monthly chart, hinting at upcoming buying opportunities at certain levels.
  • Observing short-term highs being violated indicates buyers entering the market again.
  • Price hitting bullish order blocks leads to quick expansions in reactions and potential buying opportunities.

New Section

Here, the focus is on market trends and identifying key points for making strategic buy or sell decisions.

Strategic Buy-Sell Decisions

  • Buying into down candles and order blocks results in explosive price rallies.

Detailed Analysis of Trading Strategies

In this section, the speaker discusses how to identify major price shifts by transposing information from monthly and weekly charts to daily charts for effective trading strategies.

Transposing Price Shifts

  • Understanding major price shifts by transposing data from monthly to weekly and then to daily charts.
  • Identifying significant price swings in advance by analyzing price movements on the daily chart.

Insights into Market Liquidity and Participant Behavior

This part delves into market liquidity, institutional behavior, and how understanding these aspects can aid in predicting market movements.

Market Liquidity and Institutional Behavior

  • Recognizing where stops or liquidity lie in the marketplace based on institutional overflow.
  • Anticipating market movements based on liquidity-seeking behavior towards stops found on different timeframes (monthly, weekly, daily).

Understanding Market Dynamics and Participant Intentions

The speaker explains how market dynamics are influenced by participant actions and intentions.

Participant Intentions in the Marketplace

  • Highlighting that market levels are influenced by large funds and whales residing in monthly, weekly, and daily timeframes.
  • Discussing how market levels attract participants either as buyers or sellers based on their intended purposes.
Playlists: 2016 ICT Private Mentorship Core Content Month 03
Video description

2016 Premium ICT Mentorship Core Content Video Lectures Audio and visuals are exactly as they were distributed in November 2016. CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN Trading performance displayed herein is hypothetical. Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance trading results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results. U.S. Government Required Disclaimer – Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with money you can’t afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results. Trade at your own risk. The information provided here is of the nature of a general comment only and neither purports nor intends to be, specific trading advice. It has been prepared without regard to any particular person’s investment objectives, financial situation and particular needs. Information should not be considered as an offer or enticement to buy, sell or trade. You should seek appropriate advice from your broker, or licensed investment advisor, before taking any action. Past performance does not guarantee future results. Simulated performance results contain inherent limitations. Unlike actual performance records the results may under or over compensate for such factors such as lack of liquidity. No representation is being made that any account will or is likely to achieve profits or losses to those shown. The risk of loss in trading can be substantial. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. If you purchase or sell Equities, Futures, Currencies or Options you may sustain a total loss of the initial margin funds and any additional funds that you deposit with your broker to establish or maintain your position. If the market moves against your position, you may be called upon by your broker to deposit a substantial amount of additional margin funds, on short notice in order to maintain your position. If you do not provide the required funds within the prescribed time, your position may be liquidated at a loss, and you may be liable for any resulting deficit in your account. Under certain market conditions, you may find it difficult or impossible to liquidate a position. This can occur, for example, when the market makes a “limit move.” The placement of contingent orders by you, such as a “stop-loss” or “stop-limit” order, will not necessarily limit your losses to the intended amounts, since market conditions may make it impossible to execute such orders.