GBPUSD Order Flow - Short Squeeze, Projection Target Met

Hey traders,

The OFA script does it again…

Via the aggregation of order flow, we can decipher the potential next moves in a market that has been volatile like few I’ve seen in recent memory.

It all started by a flash crash, which has ultimately led to sellers failing to rotate back down on Sept 29/30.

Once buyers took out the double top with a commanding breakout, the Pound was set in motion for first its 100% proj target ...

Only to overshoot that first measured move and attack the next 200% proj target.

The 1.12 resistance should now offer formidable resistance as we await for the OFA script to show us the way.

We will never try to predict or pretend we know what may unfold next.

We’ll be patient observers of the price behaviour and let the OFA script do the heavy lifting to take the next trade.

Remember the two key main features of the OFA 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.