My core philosophy and approach to the market is in analyzing the volume action of large commercial traders, institutions and program algorithms who control upwards of 92% of the daily volume in the market, or what I call Institutional money flow (IMF). I've been involved in the markets since 1994 at a professional level working in Venture Capital, Private Equity, and Proprietary Trading with firms such as Bear Stearns, Sungard Capital Markets, Phase II Capital and Swiss Bank, UBS where my niche was in analyzing and tracking institutional money flow.
I used this strategy to successfully Identify where smart money was quietly accumulating large positions under the radar and simply remembering where those abnormal sized orders were being placed. When price revisited that level I would work the order book to see if the institutions defended that area. I would then ride their "coattails" and trade in the direction they initiated trade. Not really rocket science, yet I used this process to handle trading for institutional clients, Fortune 500 corporations, CEO's, money managers, hedge-funds, and one of the largest private equity funds in the world.
Over the years I've come to believe that In trading and investing, if you don't know WHERE and at WHAT price Institutions are buying and selling their positions, you do not have a winning edge, period!
"It's all about figuring out when the institution is buying and selling"-The Wall Street Code-Eric Hunsader