The principle of institutional order is an order flow transaction analysis and decision-making system. It analyzes and evaluates the impact of order flow on the market from a macro perspective, from the trading behavior and trading psychology of both long and short parties participating in the market, and looks for trading opportunities that are accompanied by strength and opposite to weakness. From the microscopic point of view, order flow is an analytical method to explain the microstructure of the market, including order reading one by one, order trajectory analysis, transaction energy distribution, transaction price distribution and so on.

When the price fluctuates for a period of time and then breaks through to form a unilateral trend, the position in one direction is bound to be locked up. When the price is tested upward in this area, the long positions of the quilt have the demand of closing positions and closing positions, forming short positions, as if a large number of selling orders were gathered to lower the price and form a supply area, which is the basis for the supply and demand area system to make money.