YouTube Video — Transcript

A detailed walkthrough of trading institutional order flow against daily bias, focusing on liquidity pools, stop loss management, and price action analysis.

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Key Takeaways

Trading against daily bias can be profitable by exploiting institutional order flow and liquidity pools.
Identifying and trading around fair value gaps and liquidity draws is critical.
Stop loss placement inside fair value gaps supports risk management.
Pyramiding positions allows scaling into favorable moves while managing risk.
Price action and market structure should guide trade decisions over emotional profit/loss focus.

What the video covers

The video explains trading against the daily bias using institutional order flow concepts.
It highlights the importance of identifying sell stops taken and fair value gaps around key price levels.
The trader draws buy side and sell side liquidity pools to establish entry points.
Focus is placed on capitalizing on liquidity draws and expansions to the upside despite retail bearish sentiment.
The strategy involves pyramiding positions and managing stop losses carefully within fair value gaps.
Annotations such as order blocks and liquidity pools are used to explain trade logic.
The trader emphasizes monitoring price action over profit and loss distractions.
Real-time execution and adjustments to stop loss are demonstrated.
The video includes practical tips for using TradingView tools like holding shift to straighten trend lines.
The overall approach is methodical, combining market structure, liquidity concepts, and risk management.

Chapters

What is the main trading strategy discussed in the video?

The video focuses on trading institutional order flow against the daily bias by identifying liquidity pools, fair value gaps, and using pyramiding to build positions while managing stop losses effectively.

How does the trader manage risk in this strategy?

Risk is managed by placing stop losses inside the lower end of fair value gaps and adjusting stops as the trade progresses, ensuring the position is protected if price moves against the trade.

Why is it important to understand liquidity pools in this trading approach?

Liquidity pools represent areas where buy or sell stops are clustered, and institutional traders often target these zones to trigger stops and create favorable price moves, which the trader capitalizes on.

Full Transcript — Download SRT & Markdown

Speaker A

All right, so we're gonna be doing a quick little ditty on institutional order flow. I'm gonna be trading against daily bias, okay, and going along here. It's on the basis of the sell stops or sell side like already being taken. We've already traded into a fair value gap around that 4,000 level, and I'm trading with the idea that it could run up here and take out the buy stops above the high of the day. It doesn't need to do that to be profitable.

Speaker A

being taken we've already traded into a fair value gap around that 4 000 level and i'm treating with the idea that it could run up here and take out the buy stops above the high of the day it doesn't need to do that

Speaker A

So my draw liquidity is here, and noting the buy side liquidity will take in clear profitable shorts. All right, so this is kind of like the idea, okay, the draw on liquidity. Now, it doesn't need the trade here to be profitable. That's just my best case scenario.

Speaker A

profitable that's just my best case scenario so what i want to do now is draw the buy side and sell side liquidity pools and i'll show you the framework for the logic of why i'm entering where i'm entering it

Speaker A

So what I want to do now is draw the buy side and sell side liquidity pools, and I'll show you the framework for the logic of why I'm entering where I'm entering it.

Speaker A

relative equal lows i bought those cell stops so cell side is taken okay so you can see that here and now what i'm going to target even though i think it could go but it may not really get there it can go to 40

Speaker A

And I want you to take a look at the chart first and see if you understand what I'm capitalizing on. Pause the video.

Speaker A

show on top of the line okay and put it on top all right so i'm reaching for that now the bulk of my position i'm going to try to pyramid and build this this is a little bit bigger than just the four

Speaker A

All right, this here is the sell side liquidity, so the market has dropped below those relative equal lows. I bought those sell stops, so sell side is taken, okay? So you can see that here.

Speaker A

and we went below to take out the relative equal lows that's noted here for the south side liquidity being taken so i'm looking for expansion to the upside retail sees that as a bear flag okay so they're thinking lower prices

Speaker A

And now what I'm going to target, even though I think it could go, but it may not really get there, it can go to 4,051 and take out the high of the day. But let's say I'm wrong, what am I going to aim for? This is what I'm going to take the bulk of my position off at, and I got to make this show on top of the line, okay, and put it on top.

Speaker A

now i want you to also monitor how i manage my stop loss even though i'm trading against the daily bias the fact that we traded down three times intraday and took out yesterday's low by doing so uh that lack of follow-through

Speaker A

All right, so I'm reaching for that now. The bulk of my position, I'm going to try to pyramid and build this. This is a little bit bigger than just the four contracts, but we'll see what I get.

Speaker A

should not trade back down into that if it does i'm wrong and that's fine why do i feel confident about placing my stop loss there because if you look where i have my stop it's basically inside of the lower end of that fair value gap and

Speaker A

Now, try not to worry about that profit and loss. That's the distraction. Pay attention to the price.

Speaker A

side liquidity so bicep liquidity is the next draw on liquidity i'll take four of the contracts off so i'm going to annotate what we're doing here we're just bumping the order block there straighten this line out here okay hold down shift when you're

Speaker A

So we dipped inside that fair value gap just to the left of us, and we went below to take out the relative equal lows. That's noted here for the sell side liquidity being taken.

Speaker A

and walk at the same time all right and that's what i'm looking for i'm looking for that type of movement so that way we understand what i'm internalizing what am i seeing what's likely to pan out that's what i want

Speaker A

So I'm looking for expansion to the upside. Retail sees that as a bear flag, okay, so they're thinking lower prices.

Speaker A

position which is now six contracts i'm going to take four off above that buy side liquidity should i get the opportunity to do so and i'll do it on the basis of a market order all right so far we're getting some

Speaker A

I'm not, even if I'm wrong about it not going to 4,051, I'm confident that we're going to go up into the buy side liquidity that's needed in blue.

Speaker A

embarrassing i see it i don't like it so i'm just being a little facetious here you don't see that type of stuff called before it happens that precise but it's okay i'm gonna give you some more evidence here today

Speaker A

Okay, so far price looks nice. It's respecting the unbind narrative I'm acting upon.

Speaker A

see it okay this is me just making sure you understand that i see this before it happens not speaking in waffles where it's hard to tell what i'm saying what i'm expecting it's very very specific nothing ambiguous is being hinted at in

Speaker A

Now I want you to also monitor how I manage my stop loss, even though I'm trading against the daily bias. The fact that we traded down three times intraday and took out yesterday's low by doing so, that lack of follow-through kind of like bolsters...

Speaker A

i'm going to draw an older block on it can drop down into that pick up momentum from there and then the algorithm will likely reprice higher to the bicep liquidity or around that 40 36 level so i'm allowing for and preparing myself

Speaker A

I'm gonna do two more here, trading on to the order block, okay? So now I have six contracts long, and I'll move my stop up just a little bit underneath that low right there. It should not trade back down into that. If it does, I'm wrong, and that's fine.

Speaker A

high it might just touch that and be enough or may not even touch it at all but when you're watching order let me make this a little bit more thicker so you can see it be able to track what price is doing

Speaker A

Why do I feel confident about placing my stop loss there? Because if you look where I have my stop, it's basically inside of the lower end of that fair value gap and the old short-term high around 9:30.

Speaker A

because they looked at that imbalance the 8 30 the quick sudden drop the market has come back and rebalanced that now it's starting to drift lower people that follow imbalances and things like that because they've gotten real popular

Speaker A

So I have market structure supporting the idea, and we've already taken sell side liquidity out. We're back inside the range between where my stop loss order is and the short-term high I have noted for buy side liquidity.

Speaker A

here it's basically touched the little wick so if i wanted to add one more which i guess i could i could buy one here just to prove the point but it is what it is let's assume that this

Speaker A

So buy side liquidity is the next draw on liquidity. I'll take four of the contracts off. So I'm going to annotate what we're doing here. We're just bumping the order block there, straighten this line out here, okay?

Speaker A

close candles are supporting price we're seeing expansion and where is the bull's-eye get ready turn 50 my eyes are not what they used to be folks i'm sure if it was a rattlesnake i'd be bit by now uh there it is i should have checked my

Speaker A

Hold down shift when you're dragging your trend lines in TradingView. It'll automatically straighten them out, and that is an order block. Bullish order block is what I'm annotating here.

Speaker A

these guys that like to see those numbers flashing all right so i'm going to take four off when it runs above that high and then i'll consider moving my stop up and see if i can get lucky the rest of the day i have

Speaker A

So you can see this is all being done as it happens. I can shoot bubble gun and walk at the same time.

Speaker A

real time you saw it happen i've outlined it gave you the logic and we'll see if we can get some magic there we go so i'm going to show you the executions here and we can see the the business

Speaker A

All right, and that's what I'm looking for. I'm looking for that type of movement so that way we understand what I'm internalizing, what am I seeing, what's likely to pan out. That's what I want.

Speaker A

dollars in this example here reading order flop and that will be it for this one i believe and i'll just change this color here because now it's been fulfilled and my typical sarcastic ribbing gotta be me so here is the final here is the buying

Speaker A

So now I'm going to study, see if price does in fact deliver with that premise in mind. Again, if I'm lucky, it could expand up into that 4,051 in the quarter, but I don't need it to because the bulk of the position, which is now six contracts, I'm going to take four off above that buy side liquidity should I get the opportunity to do so, and I'll do it on the basis of a market order.

Speaker A

and it tripped me out right there on the final two so hopefully you found this insightful until next time be safe

Topics:institutional order flowliquidity poolsfair value gapstop loss managementdaily bias tradingorder blocksTradingViewpyramiding positionsmarket structureprice action

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