LEARN ICT AND SMART MONEY CONCEPT TRADING

 

What is an Orderblock Order blocks are the pieces of institutional capital that enter the market algorithmically at key levels. Instead of entering hundreds of millions of dollars all at once, institutional orders are split up into several entries. This causes tight consolidations that we see right before the market moves impulsively. 

This method leaves a map with an institutional trace that can be seen and used. 

The most important thing to understand about these institutional orders is that there is no protected stop loss. This is the reason (buying and selling at the same time): companies hedge their stocks. You might wonder why they would do that instead of just using a stop loss. The simple answer is for institutions to move the market without losing money.

These big changes are the fault of institutions. All of these things are not done by retail sellers, and we don't make such big decisions. 

What does that mean, then? 

How does that help us, then? So, in effect, what we are doing with the plan is sharing the formal institutions' digital fingerprints.

 How do you interpret that?

What follows then?

 The price decides to move in the direction we had planned to trade. We're all probably thinking, "Oh, that was just a stop hunt," at this point, and the truth is, it was. They are real. 

How does that help us, and what does it mean? 

Therefore, to use a normal retail approach, we need to understand what is happening in this case.

Have you ever wanted to enter a trade at a strong support level but were forced to wait for further movement, which is OK, before the price moved on and you were taken out? We have this strong support because many traders use resistance and support. You're probably thinking, "We just got taken out; my stops were hit, but I was right about the direction."

Alright, well done, but the deal was still unsuccessful. Alternatively, have any of us ever been breakout traders who anticipated price action and entered a trade at the breakout? If such was the case, we saw the breakout and concluded, "Yeah, I know I got it right," but in the end, we failed. We are completely misguided in that interaction.

Why is that allowed to happen? 

We must ask ourselves, "Why does that keep happening?" Although this method is predicated on probability, it ignores the real dynamics at play in the market and the players driving prices lower before they rise to our advantage.

We are aware that talent comes at a cost.

Why does the price go in this manner, reverse course, and then move forward once more? At this point, we're undoubtedly asking ourselves, "Why does it do that? " So let's take this approach to it. We are aware of resistance and support, as well as institutions.

Consequently, we may deduce that orders are being placed at this time; sell stop orders are being placed to capture the breakout, and buy limit orders are being placed to capture the rebound. But someone has to lose and someone has to win for the market to work. Consequently, you have to lose for me to win, and I have to lose for you to win. This is the terrible reality of how the markets function. Institutions are well aware of this widespread support and pushback. Due to their dependence on probabilities rather than an understanding of real market activity, the classic trendline and fib strategies have been known to occasionally work and occasionally fail.

The price is being pushed lower, then increases momentarily before exploding higher again. In order to drive everyone to quit, the institutions are purposely driving the price lower before the rally, which sets off stop losses and sell orders for breakout traders. 

The moment has arrived to take liquidity from breakout traders because, once they have enough liquidity, the price will rise.

They had, however, always desired to embark on a long journey. They are going long from this position as a consequence, which is acceptable, but when we look at it from this perspective, we can see that they have to lower the price to get there, which calls for the creation of a sell position. However, they do not use stop losses. They gave up this position in order to drive the price up to where they could seize liquidity and make this move, but once the price reaches that point, they are left in a situation of drawdown because there is none. They are still losing money on the first transaction even if they are in a winning deal that is rising.

To finish the sell position and proceed upward, they must thus lower their orders and losses. This is what transpires because they don't want a loss...