Strong Bearish Signal:
Price demonstrated a huge drop supported by large institutional volume and broke through the previous support level, which is a great bearish signal. Moreover, the large negative delta only enhances this signal.
Volume Zones:
The further move was stopped by the formation of the new support level 1.1197. It contains the large volume, but the price did not show any sharp rebound.
Sentiment:
This indicator shows that 82% retails traders are in long positions, which is a good additional signal for us (trading against the "crowd").
https://imagizer.imageshack.com/img923/5784/HOxIjY.png
Consider Short Positions:
Given all these factors, we may consider a breakdown of the new support, which will allow us to open short positions. The breakdown movement must be keen 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 -
Price demonstrated a huge drop supported by large institutional volume and broke through the previous support level, which is a great bearish signal. Moreover, the large negative delta only enhances this signal.
Volume Zones:
The further move was stopped by the formation of the new support level 1.1197. It contains the large volume, but the price did not show any sharp rebound.
Sentiment:
This indicator shows that 82% retails traders are in long positions, which is a good additional signal for us (trading against the "crowd").
https://imagizer.imageshack.com/img923/5784/HOxIjY.png
Consider Short Positions:
Given all these factors, we may consider a breakdown of the new support, which will allow us to open short positions. The breakdown movement must be keen 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 -
