BTCUSD Order Flow - This Pattern Has A 100% Accuracy Rate
You might think I am full of S*** or that this is just a way to grab your attention, but I beg to differ...
Let's get started by first applying the OFA script to the chart. Remember the two key main features it analyses (velocity and magnitude based on fractal breakouts)...
If you were to analyze every time the BTCUSD market has printed an M pattern since the top, you'd notice its success rate to see follow through continuation...
Will this time be different? If history is any indication, we should see BTCUSD much lower from here for an ultimate target of around 13k b/ on a 100% projection...
You wonder how do I get to the 100% projection? Well, by first identifying the previous bracketed area (high of 23k down to low of 18.5k) and duplicating the distance...
Let's expand now why velocity and magnitude are important in the OFA analysis:
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.
There you have it... While there may be whipsaw on both sides, if you are to stick with the prevalent trend, risks are for more losses in weeks ahead...
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
Let's get started by first applying the OFA script to the chart. Remember the two key main features it analyses (velocity and magnitude based on fractal breakouts)...
If you were to analyze every time the BTCUSD market has printed an M pattern since the top, you'd notice its success rate to see follow through continuation...
Will this time be different? If history is any indication, we should see BTCUSD much lower from here for an ultimate target of around 13k b/ on a 100% projection...
You wonder how do I get to the 100% projection? Well, by first identifying the previous bracketed area (high of 23k down to low of 18.5k) and duplicating the distance...
Let's expand now why velocity and magnitude are important in the OFA analysis:
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.
There you have it... While there may be whipsaw on both sides, if you are to stick with the prevalent trend, risks are for more losses in weeks ahead...
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
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🧑🏫🧑🏫 Author of the #1 Order Flow Script:
www.tradingview.com/script/WhQSEfKT-OFA-Order-Flow-Analysis
📧📧 DM me if doubts (100% response rate)
📓📓Learn Order Flow like a PRO:
www.ofa-course.com
🧑🏫🧑🏫 Author of the #1 Order Flow Script:
www.tradingview.com/script/WhQSEfKT-OFA-Order-Flow-Analysis
📧📧 DM me if doubts (100% response rate)
