SPY Order Flow - Script Fires Rare Signals Of Buying Fatigue
Hey traders,
Brace yourself for today's short and sweet insights on the use of the OFA script.
So, SPY has been levitating around the year highs...
However, as order flow traders, we don't marry to the long bias if the script sends the opposite signals.
What we care about is looking for the hidden signals not easily visible on a clean chart
By adding the OFA script, you could have called the back-to-back exhaustions, signaled via the DIAMOND patterns.
If then you applied my prop entry signal (around structure breakouts), it would have offered a very respectable risk reward...
Remember, when using the OFA script, it comes with highly accurate signals that, at its core, apply 2 main areas of study:
Magnitude: A major clue that will help determine the health of a trend is the type of progress by the dominant side in control of the trend. We need to ask the following question: Are the new legs in the active buy-sell side campaign as identified by the script increasing or decreasing in magnitude?
Velocity: When it comes to the distance the price moves, the magnitude is only ½ the equation. The other ½ has to do with the velocity of the move or the speed. Was the new leg created after a fast and impulsive move? Or did price make a new low or high with the movement being sluggish, compressive and taking too long to form? A good rule of thumb is to count the number of candles it took to achieve a new leg.
DISCLAIMER: This post contains commentary published solely for educational and informational purposes. This post's content (and any content available through links in this post) and its views do not constitute financial advice or an investment or trading recommendation, and they do not account for readers' personal financial circumstances, or their investing or trading objectives, time frame, and risk tolerance. Readers should perform their own due diligence, and consult a qualified financial adviser or other investment / financial professional before entering any trade, investment or other transaction.
Brace yourself for today's short and sweet insights on the use of the OFA script.
So, SPY has been levitating around the year highs...
However, as order flow traders, we don't marry to the long bias if the script sends the opposite signals.
What we care about is looking for the hidden signals not easily visible on a clean chart
By adding the OFA script, you could have called the back-to-back exhaustions, signaled via the DIAMOND patterns.
If then you applied my prop entry signal (around structure breakouts), it would have offered a very respectable risk reward...
Remember, when using the OFA script, it comes with highly accurate signals that, at its core, apply 2 main areas of study:
Magnitude: A major clue that will help determine the health of a trend is the type of progress by the dominant side in control of the trend. We need to ask the following question: Are the new legs in the active buy-sell side campaign as identified by the script increasing or decreasing in magnitude?
Velocity: When it comes to the distance the price moves, the magnitude is only ½ the equation. The other ½ has to do with the velocity of the move or the speed. Was the new leg created after a fast and impulsive move? Or did price make a new low or high with the movement being sluggish, compressive and taking too long to form? A good rule of thumb is to count the number of candles it took to achieve a new leg.
DISCLAIMER: This post contains commentary published solely for educational and informational purposes. This post's content (and any content available through links in this post) and its views do not constitute financial advice or an investment or trading recommendation, and they do not account for readers' personal financial circumstances, or their investing or trading objectives, time frame, and risk tolerance. Readers should perform their own due diligence, and consult a qualified financial adviser or other investment / financial professional before entering any trade, investment or other transaction.
👉👉 Join The OFA Inner Circle:
📓📓Learn Order Flow like a PRO:
ofa-course.com
🧑🏫🧑🏫 Author of the #1 Order Flow Script:
tradingview.com/script/WhQSEfKT-OFA-Order-Flow-Analysis
📧📧 DM me if doubts (100% response rate)
📓📓Learn Order Flow like a PRO:
ofa-course.com
🧑🏫🧑🏫 Author of the #1 Order Flow Script:
tradingview.com/script/WhQSEfKT-OFA-Order-Flow-Analysis
📧📧 DM me if doubts (100% response rate)
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