Strong Bullish Signal: The price resumed rising after a sharp correction and totally absorbed it, which shows a weakness of sellers. Moreover, the upward move was supported by the increased volume and large positive delta, which implies that buyers are dominating the market now. Volume Zones: We need to point out an important level of resistance 1.1784 - 1.1792, which has been already tested and contains the large volume. Sentiment: This indicator shows that 68% retails traders are in short positions, which is a good additional signal for us (trading against the "crowd"). https://c.radikal.ru/c16/2109/3b/a067215bb1c5.png Consider Long Positions: Given all these factors, we may open long positions after a smooth downward correction of the price, in order to get a better entry point. A stop loss may be placed below the support level. Profit Potential: More than 120 points.
To learn more about order flow based volume trading, sentiment analysis and trading against the retail crowd see the educational article below -