Bearish Signal:
Despite the upward correction of the price yesterday, there is a strong local downtrend with the Euro + the price did not grow up sharply and is still located near the new support level.
Volume Zones:
It is necessary to point out the new level of support 1.1121, which was created yesterday and pushed the price up. The increased volume is concentrated within it, so that we may assume that some institutional players tried to turn the move up.
Sentiment:
This indicator shows that 89% retails traders are in long positions, which is a good additional signal for us (trading against the "crowd").
https://c.radikal.ru/c40/1904/5e/4e4fc9e23a60.png
Consider Short Positions:
Given all these factors, we may regard a scenario of the breakdown of the support level, which will allow us to open short positions. The drop must be keen and supported by the large volume, which will insure us against a fake breakdown. 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 -
Despite the upward correction of the price yesterday, there is a strong local downtrend with the Euro + the price did not grow up sharply and is still located near the new support level.
Volume Zones:
It is necessary to point out the new level of support 1.1121, which was created yesterday and pushed the price up. The increased volume is concentrated within it, so that we may assume that some institutional players tried to turn the move up.
Sentiment:
This indicator shows that 89% retails traders are in long positions, which is a good additional signal for us (trading against the "crowd").
https://c.radikal.ru/c40/1904/5e/4e4fc9e23a60.png
Consider Short Positions:
Given all these factors, we may regard a scenario of the breakdown of the support level, which will allow us to open short positions. The drop must be keen and supported by the large volume, which will insure us against a fake breakdown. 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 -
