Gold Order Flow - Sell On Bounces After 'Circle' Trigger

Hey traders,

This is another post that centers around the use of the OFA script to decipher the path of least resistance.

Remember, as OFA traders, we simply let the market show its intent. We don't anticipate, we adapt to the dynamic flows.

Right now, the
GLD
market is sending a strong signal that bulls are in for some pain in days/weeks to come.

Why? Due to the price pattern identified by the script (these are called via 'diamonds' and 'circles').

The current formation of decreasing buy-side pressure followed by increasing sell-side is top-notch.

This type of realized order flow hints at a much lower target, with an ultimate objective of 168.00.

An entry around the 50% retracement is ideal to get you off to a great start. The risk-reward prospect is terrific (at least 3:1)

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.