Last updated on August 7th, 2025 at 04:42 pm

Institutional Trading is an insider trading concept of how big participants manipulate and deliver price, mainly focusing on price delivery algorithms, order blocks, and order flow trading concepts. Institutional trading is also known as the smart money trading concept.

The price delivery algorithm seeks liquidity either on the sell side or the buy side. Based on which side of the market price will seek liquidity, we can either have a bearish or bullish order flow. When price collects sell-side liquidity, we anticipate a bearish institutional order flow.

When price collects buy-side liquidity, we will be anticipating a bullish order flow or bullish market structure. This is called a break/shift in market structure in the retail trading space, depending on which side of the market price broke the structure.

Bullish Order Flow indicates that the institution or big participants are net long in the market, whilst Bearish Order Flow indicates that the big participants are net short in the market. Therefore, it is ideal to trade in line with the order flow because it will give you the directional bias of the market.

When Order Flow is Bullish, it’s ideal for focusing on long positions using trading concepts such as bullish order blocks or fair value gaps with a break/mitigation structure to frame your trading setup. and when Order Flow is Bearish, it’s ideal to look for short positions using but not limited to trading concepts such as bearish order block to frame your trading setups.

From The Above Chart Example, we can see that in a bearish order flow or bearish market structure, price takes out previous lows while the highs stay intact. Therefore, looking for bullish order blocks is not favorable; instead, look for bearish order blocks to sell short.

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