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SPY Order Flow Analysis - More Pain AheadOrder flow analysis can be our ally via the right interpretation of realized market orders. In this example, we can observe a failed bullish structure followed by sellers re-taking control of the downside in a push characterized by increasing velocity and magnitude vs the previous failed buying cycle, all well depicted via the OFA script.
A 100% projection target from the last bracketed area suggests an ultimate target of circa 365, which perfectly aligns with the previous trend lows.
Remember the two key main features of this indicator:
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.
Order Flow Analysis via USD/JPY - Perfect Entry at Macro SupportSimplicity in trading via the OFA is a thing of beauty. The tool allows you to decipher market intentions. The proper reading of order flow can provide information advantage as in the case of this recent long trade in USD/JPY off a weekly support area. Notice in this example how sellers were running out of gas as plotted via the down legs (both in amplitude and velocity of the move), further vindicated by the breakout of structure higher, which saw an extension in price amplitude. The rest is history.
Order flowThe daily chart has the characteristics of a volatility contraction approach, price has now invalidated the contraction and we’re up for a volatile move.
4h timeframe shows that the bullish three drives were in accordance with the bullish order flow. This breakout made a small retest to the daily order block and fell to the demand zone, with this current candlestick it looks more like price respects the area and we should be ready for a full pullback to the order block.
Now it’s clear that the bearish move has lost its momentum, the immediate target is the order block then we go long with this potential and long bearish move the liquidity area at 87.047…
order flowfollow the order flow to the down side if confirmed with another entry on the supply, of course my buy order didnt get picjked up so now lets go down on it yet with confirmation, target is possible at every demand yet dont be agressive on taking profit as we are in the side of sellers dominating
ORDER FLOW-SETUP #NZDCAD LONG - // 75+ PIPS UP FOR GRABS// Hi all,
Potential trade setting up on NZD/CAD.
USD is weakening in strength and the USD INDEX is hitting major resistance which translates into a weaker CAD.
Adding to this analysis is the falling oil price, which CAD is highly dependent on.
Order flow is looking good as well with NZD +6 and CAD -6.
Best of luck to everyone !
www.tradingwhales.com
ORDER FLOW-SETUP #EURAUD SHORT- // 200+ PIPS UP FOR GRABS//Hi all,
Potential trade setting up on EUR/AUD this coming week.
Additional information:
USD is weakening in strength (AUD and XAU is in anti-correlation with USD) and the USD INDEX is hitting major resistance which translates into great indications for a stronger AUD and a weaker USD, especially against a weak EUR.
We can also see that the order flow is going towards AUD.
- However EUR is expected to gain in strength but AUD will still be stronger so this trade is looking good.
- Pullback is for selling.
Correlating pairs: AUD/CHF (GBP/AUD).
See chart for more details.
www.tradingwhales.com