Strong Bearish Signal:
The price showed a huge drop supported by the large institutional volume and totally swallowed the previous upward correction, which demonstrates the weakness of the buyers. Besides it, the large negative delta implies that sellers are dominating the market at the moment.
Volume Zones:
It is necessary to point the new resistance level 1.1817 - 1.1822, which contains the large volume. Moreover, the price started its fall exactly from this mark.
Sentiment:
This indicator shows that 64% retails traders are in long positions, which is a good additional signal for us (trading against the "crowd").
https://d.radikal.ru/d02/2107/10/5dc7126ef6e6.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 -
The price showed a huge drop supported by the large institutional volume and totally swallowed the previous upward correction, which demonstrates the weakness of the buyers. Besides it, the large negative delta implies that sellers are dominating the market at the moment.
Volume Zones:
It is necessary to point the new resistance level 1.1817 - 1.1822, which contains the large volume. Moreover, the price started its fall exactly from this mark.
Sentiment:
This indicator shows that 64% retails traders are in long positions, which is a good additional signal for us (trading against the "crowd").
https://d.radikal.ru/d02/2107/10/5dc7126ef6e6.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 -
