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Reading Institutional Order Flow with ICT Concepts

Bullish Order Flow

Price fails to make new lows, respecting bullish PDA’s, and breaking structure to the upside, disrespecting bearish PDA’s.

How to identify a bullish market?

  • Rejects Lows
  • Breaks through Highs with candle bodies closing above
  • Down-closed candles support price higher (Order Blocks)
  • Disrespects bearish PD Arrays

Bearish Order Flow

Price fails to make new highs, respecting bearish PDA’s, and breaking structure down, disrespecting bullish PDA’s.

How to identify a Bearish Market?

  • Rejects Highs
  • Breaks down through Lows with candle bodies closing below
  • Up-closed candles support price lower (Order Blocks)
  • Disrespects bullish PD Arrays

Consolidation Ranges

Price continuously sweeps ERL and failing to displace outside of the range.

How to identify a market in consolidation?

  • Lacks velocity in either direction
  • Price stays within the high and low of a range without breaking through and closing strongly on either side of the range
  • Sweeps external liquidity, failing to breakout and close above Highs/Lows, reversing back into the range.

Key Points

  1. Mark out which highs and lows are being respected or disrespected.
  2. Where did the market come from within the context of market cycles?

Resources

ICT Mentorship Core Content – Month 03 – Institutional Order Flow

ICT Mentorship 2023 – Deep Dive Into Institutional Order Flow

When should order flow be respected?

During distribution. What occurs before distribution? Manipulation. We want to see PDA’s respected, favoring our direction, and disrespecting (and ideally displacing) through opposing PDA’s.

When is order flow disrespected?

During retracements to discount/premium or when price is stuck in a consolidation PDA’s will get disrespected.