Strong Bullish Signal:
The price tested the resistance level, but could not break it out. Then the pair corrected downwards, however, the move was smooth and supported by the small volume, hence, we can't consider it as a reversal signal. Besides it, there is a strong uptrend.
Volume Zones:
We need to point out an important level of resistance/local maximum 1.2155 - 1.2170, which contains the large volume. The price is trading near this mark now.
Sentiment:
This indicator shows that 74% retails traders are in short positions, which is a good additional signal for us (trading against the "crowd").
https://d.radikal.ru/d10/2012/c9/29440b38ff18.png
Consider Long Positions:
Given all these factors, we may ponder a scenario of the resistance level breakout, which will consent us to open long positions. The surge 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 below the breakout volume bar.
Profit Potential:
More than 100 points.
To learn more about order flow based volume trading, sentiment analysis and trading against the retail crowd see the educational article below -
The price tested the resistance level, but could not break it out. Then the pair corrected downwards, however, the move was smooth and supported by the small volume, hence, we can't consider it as a reversal signal. Besides it, there is a strong uptrend.
Volume Zones:
We need to point out an important level of resistance/local maximum 1.2155 - 1.2170, which contains the large volume. The price is trading near this mark now.
Sentiment:
This indicator shows that 74% retails traders are in short positions, which is a good additional signal for us (trading against the "crowd").
https://d.radikal.ru/d10/2012/c9/29440b38ff18.png
Consider Long Positions:
Given all these factors, we may ponder a scenario of the resistance level breakout, which will consent us to open long positions. The surge 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 below the breakout volume bar.
Profit Potential:
More than 100 points.
To learn more about order flow based volume trading, sentiment analysis and trading against the retail crowd see the educational article below -
