Strong Bearish Signal:
The price showed a sharp drop supported by increased institutional volume, which means that the smart money goes on push the price down.
Volume Zones:
We need to allocate the strong support level 109.10, which contains the large volume.
Sentiment:
This indicator shows that 84% retails traders are in long positions, which is a good additional signal for us (trading against the "crowd").
https://c.radikal.ru/c29/1905/ad/11adb0770751.png
Consider Short Positions:
Given all these factors, we may consider a scenario of the breakdown of the support level, which will consent us to open sales. The movement must be abrupt and supported by the large volume, which will be a more secure signal for entering the market. A stop loss may be placed above the breakdown volume bar.
Profit Potential:
More than 100 pips.
To learn more about order flow based volume trading, sentiment analysis and trading against the retail crowd see the educational article below -
The price showed a sharp drop supported by increased institutional volume, which means that the smart money goes on push the price down.
Volume Zones:
We need to allocate the strong support level 109.10, which contains the large volume.
Sentiment:
This indicator shows that 84% retails traders are in long positions, which is a good additional signal for us (trading against the "crowd").
https://c.radikal.ru/c29/1905/ad/11adb0770751.png
Consider Short Positions:
Given all these factors, we may consider a scenario of the breakdown of the support level, which will consent us to open sales. The movement must be abrupt and supported by the large volume, which will be a more secure signal for entering the market. A stop loss may be placed above the breakdown volume bar.
Profit Potential:
More than 100 pips.
To learn more about order flow based volume trading, sentiment analysis and trading against the retail crowd see the educational article below -
