ICT 2022 Mentorship Model: ክፍል 5 – Daily Bias & Institutional Orderflow(IOF)

Introduction

This tutorial outlines the key concepts of daily bias and institutional order flow (IOF) as presented in the ICT 2022 Mentorship Model video. Understanding these concepts is essential for traders looking to improve their market analysis and decision-making processes. This guide will break down the information into actionable steps that you can apply to your trading strategy.

Step 1: Understanding Daily Bias

Daily bias refers to the overall direction of the market within a trading day. Here’s how to establish it:

• Identify Market Sentiment: Analyze recent price action and news events to gauge whether the market is bullish (upward trend) or bearish (downward trend).
• Use Time Frames: Start with a higher time frame (e.g., daily or 4-hour) to determine the prevailing trend.
• Observe Key Levels: Look for significant support and resistance levels that can impact the bias for the day.

Practical Tip

Always confirm your bias with multiple time frames to ensure consistency in your analysis.

Step 2: Analyzing Institutional Order Flow

Institutional order flow involves understanding how large institutions buy and sell in the market. This can provide insights into potential market movements.

• Monitor Volume: High trading volumes can indicate strong institutional activity. Use volume indicators to spot these surges.
• Identify Order Blocks: Look for areas where price has previously reversed sharply. These are often referred to as order blocks and indicate where institutions may be placing large orders.
• Watch for Price Actions: Pay attention to candlestick patterns and how price reacts around key levels to assess institutional behavior.

Common Pitfalls to Avoid

• Avoid relying solely on one indicator. Use a combination of volume, price action, and order flow analysis for better accuracy.
• Don’t ignore the context of economic news as it can significantly influence institutional behavior.

Step 3: Integrating Daily Bias with Order Flow

Combining your daily bias with insights from institutional order flow can enhance your trading strategy.

• Align Trades with Bias: Only take trades that align with your established daily bias. If the bias is bullish, look for buying opportunities and vice versa.
• Confirm with Order Flow: Check if the order flow supports your daily bias. For example, if the market is bullish, ensure that institutional buying is evident in the order flow.
• Set Entry and Exit Points: Use the identified order blocks for setting entry points, and establish stop losses just below these areas to manage risk.

Conclusion

In this tutorial, we covered the essential steps to understand daily bias and institutional order flow. By establishing a clear daily bias and integrating it with the analysis of institutional activity, you can make more informed trading decisions.

Next Steps

• Practice identifying daily bias and order flow in your trading charts.
• Follow relevant news events and their impacts on market sentiment.
• Continuously refine your strategy based on market feedback and personal results.

By applying these concepts, you can enhance your trading effectiveness and align your strategies with institutional movements.