Strong Bearish Signal: The price tested the resistance level, but could not break it out and after that showed a sharp drop. The movement was on the large volume, which only enhances it importance. Volume Zones: We need to allocated a strong volume resistance level 0.6932, that has already been tested a couple of times. Sentiment: This indicator shows that 93% retails traders are in long positions, which is a good additional signal for us (trading against the "crowd"). https://a.radikal.ru/a23/1905/fd/0756ad78fdea.png Consider Short Positions: Given all these factors, we should consider exceptionally short positions. We may enter the market after a smooth upward correction, in order to get a more profitable entry point. A stop loss may be placed above the new resistance. Profit Potential: More than 80 points.
To learn more about order flow based volume trading, sentiment analysis and trading against the retail crowd see the educational article below -