SPY Order Flow - Short Entry Setting Up

Hey traders,

Today, I am going to keep it short and sweet. As I've pointed out in the linked commentary, the SPY is in a firm downtrend...

Therefore, all we care about, until the tide reverses in the higher timeframes, is to look for short opportunities...

There is a possible entry setup with an attractive initial risk rewards in the making...

Note, it won't be triggered until there is a breakout of the previous structural low as indicated via the OFA script.

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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