All language subtitles for cdcsce

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.