Original subtitles

Yes guys, welcome to the next video in this first part of the

technical course. So what we're going to be looking at this

time is the theory of institutional for order flow.

So moving on from last time you know we discuss market

structure we discussed premium and discount areas. But what do

you actually do when you get to them premium and discount

areas. Now before we even get into the types of order blocks

that we're looking at is we need to understand how the

institutions work. So one key thing that you must know is the

retail traders we're not the ones that move the currency

pairs. We're not the ones that move the markets. It's the

banks and the institutions. So you need to understand how they

trade and what traces they leave behind. So what do I mean

by the traces? It's this thing called order blocks where they

set a certain amount of orders that they come in that they

need to come and mitigate. I'm going to draw this. I want to

you know teach this as simply as I can. So let's just do it

through market structure. We're in a downtrend. We know we're

in a downtrend because we're seeing a high then a low and a

high then another low that breaks below that now if we're

still if we still have that conviction that we're in a

downtrend that we're going to be going any lower what do we

need to look for we need to look for a premium area to sell

right we're not going to be selling at the 50% of the range

that we've just created so what we're going to be looking at is

an area let's just say between there between that 71 fib and

the one fib So what what do banks do when they try and

sell? Now the traces they leave behind are so clear. When

they're trying to sell they would let's just open this up.

They would get to that area then as they can't just sell

straight away because if if they would just put massive

buyers and massive sell orders the markets would look crazy.

What they would usually do is they would fake that order so

they put in some buy orders to send it up a bit so some people

for example they would think okay that's the buy let me get

in but no it's a disguise in a way they would put that buy

order right in let's just say 100 million of buy orders

that's set right there the entry was there and it's still

going then they would hedge against that put massive

massive sell we could say this is what $400 million they would

put as a sell. Now what this means is yes they've got their

sales going but they've also got this buy order in draw

down. So what they need to do is they need to come eventually

come so they go all the way down they're happy with their

profits they take the take profits there the sales are

finished so when their sales are finished one key thing as

well before we get into the rest is for every seller

there's a buyer so when one sales that contract is bought.

So as soon as you start taking as soon as banks start taking

profits of sales, what does that mean? The market is

going to move up a bit. Because that sale volume is still not

there. It's still not going so the orders have been eased.

Eventually what happens is if you remember this buy order's

still active. So let's just say at we're at this point in time.

Right now they must be I don't know. They've just made 100

million.

00 million right here but this order is still going they're at

minus 25 million what do they need price to do they need

price to come and eventually mitigate this loss now

technically it's still not a loss because it's still open

but what they try to do if you remember the entries right here

they want price to come right back at right back to this area

and then as soon as they get there close that trade at maybe

a small loss of two million or at Break even for example if it

mitigates perfectly or even deeper in it so they could be

cheeky and take some profits as well. But this is what

institutional order flow is. You need to understand how

markets move why they move and what they leave behind and that

is what we call order blocks.

So let me just move on to the next slide. I'll clear up the

annotations that we've just got. So yeah, this is, let's

just say for example, this is a screenshot I took of any

market, I just, just some analysis I did a while ago,

quite a simple screenshot. What we are in right now is an

uptrend, so if we look at, this on the lower time frame, but if

we look on the higher time frame, what we're doing is

this, let's just say that's a complicated pullback this and

we're buying again now what we're seeing right here is if

we're looking for buyers obviously we're going to be

looking for discounted areas so anywhere below that now what we

expect price to do is to come back down but to where we need

to look for this order block we need to look for this

manipulation that's happened doesn't even matter about the

the color of of the candles I mean this could be black red

blue however you like I keep it black and grey just to keep it

quite simple but this is the order block that we've just

identified you would usually look at the body of that

obviously you've got wicks as well and the that I'm going to

teach for later on in the course sometimes the wicks are

very sensitive sometimes the body is sensitive but yeah this

is that main move that we are talking about the banks they

put that sale order right in there and then so that sell

order was put in right there at 100 million pound order

whatever then they put one billion the other way price

moves crazy the other way eventually they take profits

here then when they get back down this is where price needs

to be mitigated at least now it depends price could be

mitigated that this this is a valid order block as well this

is a bit too high because of course we're still looking for

discounted areas but this is one thing you need to

understand there are different types of order blocks and

understanding which ones need to be mitigated first that will

help your you know you're going to understand that later

on but this the theory of institutional order flow what

we expect is price to go back down there it creates an order

block moves back up boom takes that high eventually it might

not come back straight to order that order block will be a

different type of order block then again back up then again

this is as long as you've got an uptrend in a downtrend in

movement that's very clear this what you're going to be getting

in consolidations I'm going to teach what happens but that's

slightly different still work with the order blocks but

taking profits is different how long your trade is very

different as well. But yeah this is the theory of all the

blocks. Um search it up on the internet. I'm pretty sure

there's many YouTube videos about it. Understand how the

banks work. Uh but yeah. You guys take care and I'll see you

in the next video.