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 and it's on the basis of the cell stops or cell side like already 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 to be profitable 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 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 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 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 all right this
here is the sell side liquidity so the market has dropped below those 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 51 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 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 now try not to worry about that profit and loss that's that's the distraction pay attention to the price 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
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 i'm not even if i'm wrong about it not going to 4051 i'm confident that we're going to go up into the buy side liquidity that's needed in blue okay so far price looks nice it's respecting the unbind narrative i'm acting upon 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 kind of like bolsters 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 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. so i have market structure supporting the idea and we've already taken cell 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 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 dragging your trend lines and treating view it'll automatically
straighten them out and that is an order block bullish order block is what i'm annotating here so you can see this is all being done as it happens i can shoot bubble gun 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 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 40 51 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 all right so far we're getting some response off that order block level i've annotated ocd is flaring i like things the way i like them folks all right nice little caffeine bar there caffeine bar is something i named big green candles if
i'm bullish i want to see that i'm 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 now this is what you want to do also if you're practicing reading order flow tape reading you don't have to necessarily put a demo account position on i'm doing it just simply because a lot of people like to 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 here okay so cell side has been taken this is now being dimmed so that way the focus is on the the levels that are more pronounced in color now see there's two down closed candles the higher candle of the two 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 should it trade down into that level it might just touch the higher wick of the two down closed candles i'm anchoring to i'm using the uppermost opening price as kind of like the level i'm looking for but that small little wick 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 now this is one of those instances where you're looking for price to kind of like drive higher you want to do it in like big candles speed delivery right to where you're looking for traders are now trying to go short 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 lately that idea they're trying to sell short on i'm going against
that and i'm targeting them okay so that's a that's a buy right there some order block right there all right i would adjust that line but i've already outlined what i'm saying 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 is all we're going to build on i want to see it rally higher from here notice i'm not in a hurry to rush my stop-loss up
very nice price delivery there so think about what's being shown here the down 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 most recent ones at the top all right so we'll put that right here that's our bullseye okay and i can bring my stop-loss up to break even i'm actually going to get that a little bit higher
now you can see the profit and loss for 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 things i have to take care of administrative things and video production so should we get this run up above i'm going to close four at market okay just sitting here waiting for it to deliver and again those odor blocks were drawn 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 okay and i'll leave it up to the market to decide whether or not it wants to go up here and take the 40 51 and a quarter level it doesn't need to at this point i've booked over five hypothetical thousand 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 four four thousand six and a quart and a half and then buying this here so the initial was buying the fair value gap sales ops then the order block then selling four above here and i moved the stop loss up and it tripped me out right there on the final two so hopefully you found this insightful until next time be safe
