We want to sell high so we have to look for buyers in the market above old highs
Look at the HTF to give us a framework to see if we have institutional sponsorship
Everything in this teaching will be focused on long setups.
For our setups to be high probability we have to have institutional sponsorship Institutional sponsorship is the willingness to protect an underlying price swing that has high probability of holding, its the impact of big equity traders and they come in to fund to run towards the side we anticipate it running to
Its a repeating thing, theres characteristics. Especially when we use HTF setups
A liquidity pool
Everything you see on 1 timeframe happens on other timeframes as well, its fractal
If we anticipate a move higher, first thing is Where can it go to?
If they take sell stops theyre probably accumulating buy orders and if we have suggestions in price action in the form of liquidity void and buy stops, we may have a high probability of going long
HTF displacement
Daily charts are not going to move this dynamic without institutional sponsorship
Where did it start?
The orderblock, if price wants to come down we can look to buy there
To identify institutional sponsorship in a particular segment of price action you NEED to see immediate dynamic response. If its lethargic and not willing to move right away that means theres no institutional orders in that area. So if you see that when youre in a trade either reduce risk or just cut the trade completely. Don’t marry the idea. If youre on the right side, price will move dynamic immediately.
We got 1 and 2 of the criteria now, HTF displacement and price traded back into a discount
Where is the short term buy liquidity? Where can institutions sell their orders to willing buyers
And if theyre willing to hold to this one, what will be the next likely target?
Once we hit that, what is price doing? Its pairing orders with buy stops, so whats the next institutional orderflow suggestion? The next high
If it wants to go up there, that means its highly unlikely for price to go all the way back down to the bullish orderblock again. Because market structure now shifted when we went above that high and institutions already bought the first time at the orderblock
First buying → EQ/midway point → 75% → And then ultimately terminus above the high 4 stages of a price swing Institutional should support price at these levels At the start they usually move fast so you can’t get involved, then at EQ youll likely get another chance, so EQ of the target range
So institutional sponsorship should protect that downclosed candle until we get to the buy stops
Each time we take out buy stops we dont collapse the trade, we dont look for reversal, we look for willingness to keep going higher to take all the buy stops
