GBPUSD Order Flow - Sellers In Control

Hey traders,

In this 8h chart (session by session flows), we can clearly observe through the OFA script how this remains an active bearish campaign with selling on rallies mentality paying off the most.

The structures drawn in the chart depict the lower lows and lower highs currently dominant in this market. Until there is a change in behavior, which will be manifested though a change in the structure as showed case by the OFA script, the path of least resistance is well anchored to the downside.

Be reminded, when applying the OFA script , it has 2 main components to 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.

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