Institutional patterns are not pretty figures…
They are maps of manipulation, fakeouts, retests, and compressions that exist to tire retail before moving the price… Institutional Price Action is a way to read the market focused on how the price moves, not on indicators. It starts from a simple but powerful idea: the price moves where there is liquidity, and institutions (banks, funds, market makers) are the ones who most influence that movement. 🐋
Each one serves a function:
- Retest (QML, SR flip): the price returns to a key area to validate that it now acts as support or resistance.
- Continuation: after consolidating or absorbing liquidity, the main trend continues.
- Fakeout / Stop hunt: false breakout to activate stops and allow institutional entries at a better price.
- Compression: the price contracts, signaling accumulation before a strong movement.
How to use this in practice
The institutional approach does not seek to predict but to read intention:
1. Identify the market structure.
2. Mark clear areas of supply, demand, and liquidity.
3. Wait for the pattern (do not chase it).
4. Enter when the price confirms with structure and reaction, not just for touching a line.
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