Strong Bearish Signal: The pair demonstrated a huge drop supported by large institutional volume and broke through the previous support level. Moreover, the large negative delta indicates that dellsers were dominating the market. Volume Zones: The new level of resistance 1.1266 – 1.1276 was created during this drop, which contains large market participants volume. Sentiment: This indicator shows that 78% retails traders are in long positions, which is a good additional signal for us (trading against the "crowd"). https://imagizer.imageshack.com/img921/710/52LGMu.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 100 pips.
To learn more about order flow based volume trading, sentiment analysis and trading against the retail crowd see the educational article below -