High probability trading setups- Pick Direction Of Big Financial Institutions

Did you know that you can trade in the direction of big financial institutions ??

It’s not difficult to track their order flows.

You can easily differentiate between a retail trader’s order flow behavior and financial institution’s order flow behavior.

Learn to pick high probability setups within a few minutes.

I am going to explain how I pick the sweet spot to trade institutional order flows.

The first step is observing big financial institutional direction.

Read our post on how to identify institutional buying and selling before continuing with this informative post.

Step 1-Look for big moves on the left side of your chart

Open any chart you want to do technical analysis.

Now keep looking on the left side for an extremely big move either up or down.

You can choose any time frame you want.

I have selected a daily interval time frame chart and marked the first extreme big move.

Extreme fall of prices shows directions of big financial institutions

Step 2-Mark the first candle from which this big move started with two horizontal lines

You can see below I have marked the candle with an arrow. According to me, this candle was the beginning of the entire big move by institutions.

Marking Financial institutions trading zone

Now I have marked the entire candle with two horizontal lines.

Marking trading zone

I call this an institutional selling zone.

My trading action on this stock and reason

This stock is in a downtrend on a daily and weekly time frame.

As markets are also falling from the past few days, my trading action on this stock will be selling or shorting it.

But as I need a high probability trade setup, I am going to short this at institutional selling zone levels.

Adding price alert to trade in the direction of big financial institutions

I will add an alert on this stock just 10 points or down from this selling zone.

My trading platform shows me a popup alert the moment it crosses my marked alert price.

High of the marked candle is 388 and low is 377.10.

So I have added an alert at 367.10 on this stock.

Marking trading zone

So the moment prices reach 367.10, I will get an alert.

To trade a short position, either I will short this stock when it reaches the selling zone or I will wait for it to reach inside the zone and then go out of the zone by 1 point or 1 tick below the zone.

Buying in the direction of big financial institutions

In the same way, you can find out an extreme move upside.

This zone will be called an institutional buying zone. You can mark the entire zone with two horizontal lines and take a buy trade when prices reach again the same zone.

Take a look below.

Institutional pending orders demand zone

The moment prices entered this buying zone it moved up. So this type of zones will be very useful for traders looking for quick movements of the price.


The direction of big financial institutions can help you in improving your trade success. Possibilities of unfilled order quantity in these zones are high.

This is why I call these high probability trade setups.

You can combine this with your existing strategy and build a trading system.

How do you track the financial institution’s directions ??

Use the comment section below and let me know your view.

And which topic do you want me to write next time which can improve your trading overall?

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9 thoughts on “High probability trading setups- Pick Direction Of Big Financial Institutions”

  1. Will these above strategies and identifying buying/selling from institutional (that you explained on previous article using the Volume Indicator) work as well for Forex and elsewhere or only for stocks?


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