What are your favorite indicators for spotting institutional moves?
Many traders are interested in identifying the footprint of larger market participants, often referred to as "smart money." I found a comprehensive guide that explores various volume indicators, explaining why volume is considered a leading signal in technical analysis by many. The article highlights 8 best volume indicators, noting that institutional buying and selling can be subtle, building positions over time rather than with single clicks. It describes how these indicators help spot institutional activity before price movements become obvious. The guide details indicators like On-Balance Volume (OBV), VWAP, Volume Profile, and Chaikin Money Flow, among others. Here is the link to the full article:
How do you typically combine volume analysis with other elements of your trading strategy to confirm potential institutional moves?
The concept of tracking institutional activity through volume is quite compelling. Large institutional orders are inherently difficult to conceal entirely, as they represent significant capital movements that must be absorbed by the market. Therefore, any prolonged deviation from typical volume patterns, especially around key price levels or after significant news events, can often be interpreted as an indication of professional interest. It requires careful observation and an understanding of normal market behavior for a specific asset.