Best way to find institutional buying

romski

Junior member
41 0
Hi Guys,

I am trying to start up a new style of investing and trading and I just wondered if anyone had any tips on the Best way to find out when institutional buying is going on?

Any thoughts would be greatly appreciated, thanks
 

georgedon

Junior member
37 2
When the market is going up, institutions are buying. When it is going down, institutions are selling. Sounds very simple, but it is true.
 

justtrader

Well-known member
470 71
When the market is going up, institutions are buying. When it is going down, institutions are selling. Sounds very simple, but it is true.

Not necessarily
Institutions could be selling while the market is still going up, as institutions and large speculators trade a longer term than retail traders.
It is not recommended to use COT data for retail trading.
 

isatrader

Senior member
2,963 133
Look into Effective Volume by Pascal Willain. He developed it to try and split the institutional buying volume from the individual trader volume.
 

bbmac

Veteren member
3,584 787
DOM/Price ladder, Level II, (Level III,) T&S, Volume, and then there is as another poster suggests above - PA itself, and, some might argue -Market Profile These are all tools that may help you to determine where demand and supply may exist in any given market. Different markets seem/are more suited to different types of analysis methods in this respect. As for analysis/information to tell you categorically and definitively where institutional buyers/sellers are - well - tips/rumour and even better - inside info may help you there- although isn't one of these illegal under certain circumstances !? lol.

G/L


Hi Guys,

I am trying to start up a new style of investing and trading and I just wondered if anyone had any tips on the Best way to find out when institutional buying is going on?

Any thoughts would be greatly appreciated, thanks
 

BeginnerJoe

Senior member
3,329 350
The best way I know is through broker recommendations. Brokerages are also operated by these institutions directly. When they all recommend sell, it's close to time to buy because they themselves would be buying. When they all recommend buy, it's close time to sell.
 

romski

Junior member
41 0
Thanks guys,

I am currently using this system for my level 2 data for the UK

Quotestream | Interactive Investor

I do think that the opposite of what brokerages seems a good option,

I generally don't enter a stock unless their is volume underneath and so far this seems to have provided better results than when I enter without any volume, but usually I am behind the curve and I only really find out the big buys until they are through the system :(

Also what are the chances that volume can be manipulated?
 

rajtest

Newbie
6 0
My friend if you find out when funds are buying and selling, you will be rich very soon.
No matter what anybody says, its very hard.....

My trading style is to following big buying in the market at high risk level. My experience in this market tells me that, funds only buy when most people are affraid and ready to run. Funds starts selling when everybody wants to buy everything they got.

you can see this pattern every day in the market. Follow price-volume analysis (not indicator) ..... understand how price is moving in zone..... because when funds are buying they buy in a particular zone..... they don't buy everything in one day.... it take them weeks or months to buy.... because they need to buy big quantities with reasonable price... (i can talk about it for hours so i better stop here).....

So in nutshell.... understand price behavior in a specific zone and understand how volume is behaving around there..... from there you can understand the probability of buying power being higher or average or lower..... and from there you can start designing your trade......

just a warning : its very complicated thing.....to analyze the zone... but once you do it ...everything looks easy in the market.... (it took me around 3-5 years and still learning.....some say i am too slow)

let me know if i can be of any further help
 

rajtest

Newbie
6 0
(I can't do PM as I am still new here)



I only to TA to decide on any trade and makes sure that No company event in next 2 weeks.

Over the years of reading and analyzing the graph, i settle down on analyzing price bar and bolume bars movement to make my decision. I try to look for accumulation over the period of 2 weeks to 2/3 months and setup alert or my trade.

Before I enter the trade, i glance over the money flows, OBV and RS movement over the last couple of months to get idea.

I wish i can tell you one simple secret but there are none.... as you know, we all loose money at times..... what i can tell you is that thousands hours of reading and eye burning in front of computer helped me to gain confidence and you will certainly find your favorite trade setup once you go through the grinding process.....

Good thing for you is that you like to analyze the B/C which is very plus for you.

If you don't mind me asking, how long you have in the market?

when i have some time I will start my thread where I will start posting some of my analysis.....

let me know if i can any further help...

-R

romski said:
Hi buddy,

Thanks for your reply to my post, I would love to hear some of your thoughts on Institutional buying.

For me I think it's one of the safest ways to invest, when you have a big boy behind you and also I feel more comfortable with the investment if there are ii's on board.

At the moment, i usually use a volume scan and then a rising chart to help me identify investment opportunities and I am ok at analyzing balance sheets etc, it's the TA and using the scanners and level 2 that I am not so good on.

Hows your investing going?

Thanks

Rom


My friend if you find out when funds are buying and selling, you will be rich very soon.
No matter what anybody says, its very hard.....

My trading style is to following big buying in the market at high risk level. My experience in this market tells me that, funds only buy when most people are affraid and ready to run. Funds starts selling when everybody wants to buy everything they got.

you can see this pattern every day in the market. Follow price-volume analysis (not indicator) ..... understand how price is moving in zone..... because when funds are buying they buy in a particular zone..... they don't buy everything in one day.... it take them weeks or months to buy.... because they need to buy big quantities with reasonable price... (i can talk about it for hours so i better stop here).....

So in nutshell.... understand price behavior in a specific zone and understand how volume is behaving around there..... from there you can understand the probability of buying power being higher or average or lower..... and from there you can start designing your trade......

just a warning : its very complicated thing.....to analyze the zone... but once you do it ...everything looks easy in the market.... (it took me around 3-5 years and still learning.....some say i am too slow)

let me know if i can be of any further help
 

romski

Junior member
41 0
I only to TA to decide on any trade and makes sure that No company event in next 2 weeks.

Over the years of reading and analyzing the graph, i settle down on analyzing price bar and bolume bars movement to make my decision. I try to look for accumulation over the period of 2 weeks to 2/3 months and setup alert or my trade.

Before I enter the trade, i glance over the money flows, OBV and RS movement over the last couple of months to get idea.

I wish i can tell you one simple secret but there are none.... as you know, we all loose money at times..... what i can tell you is that thousands hours of reading and eye burning in front of computer helped me to gain confidence and you will certainly find your favorite trade setup once you go through the grinding process.....

Good thing for you is that you like to analyze the B/C which is very plus for you.

If you don't mind me asking, how long you have in the market?

when i have some time I will start my thread where I will start posting some of my analysis.....

let me know if i can any further help...

-R

thanks, i am still a little unsure how to use level 2 quotestream at iii.co.uk, i understand about the price and depth. But I can't seem to really make much sense of it as it moves pretty quickly and i can't seem to find out which market makers really have an affect on the price of a stock.

I have been in the markets maybe 3 years now, I started off with AIM stocks, but I found their price behavior to be irrational, AIM stocks often seemed to drift downwards on no news and alot of the graphs looked like big spikes upwards and slow trends downwards and fundamentals seemed to hold little weight.

Also I didn't like that fact that there were little institutional investors on board so this increased the volatility of the stock.

So I abandoned this strategy and found the naked trader strategy which is sort of a breakout strategy and this sits well with me, I go on fundamentals, so I look for good management, cash, low debt and growth prospects.


my weaknesses are holding a stock when its falling, i have trouble finding out if this price movement is simply a treeshake or a sell off or short term dip/buying opportunity
 

StockOpSys

Newbie
5 0
Price and volume are two sides of the same coin and have a strong relationship with each other. By going back over several months using a 20-day SMA over volume, you can tell if a stock is under accumulation or distribution by the growth, or decline, of the average volume and the direction of price action.

When price and volume diverge, then that is usually a sign that a reversal is underway.

Here is a good article on the subject - How To Use Volume To Improve Your Trading .
 

BeginnerJoe

Senior member
3,329 350
they don't buy everything in one day.... it take them weeks or months to buy

Yes, they can't really hide their activities. Usually when this happens at a peak or trough, it's often obvious what their game is.

Another thing I just noticed they do, is they disrupt internet chart services such as google and yahoo to prevent people seeing the charts. So finding stocks with unviewable charts could be a way of identifying stocks with forthcoming action.
 

Joules MM1

Established member
646 142
:eek:
Yes, they can't really hide their activities. Usually when this happens at a peak or trough, it's often obvious what their game is.

huh, they really can't?...not through dark pools or simply waiting for easy supply to fall into their pending orders, not ice-bergs or ....oh, well, so, they can't hide their activities, you say

but this next one....you bewt...


...they disrupt internet chart services such as google and yahoo to prevent people seeing the charts.
:-0

dude...are you going for lulz of the week award? all charts have forthcoming action so i assume you mean specific ("they") institutional accum's or distrib's.....but, seriously.....Joe, i thought you had more nouse than this utter jibberish.....

show us an example ...where data disruption occurred and then there was a significant trend change....even though those providers you quote have dubious feeds....
 
 
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