Strong Bearish Signal: The pair demonstrated a huge drop supported by large institutional volume, which means that the smart money pushed the price down. Volume Zones: WE need to poiunt out the level of support 1.1116, which contains the large volume. Sentiment: This indicator shows that 86% retails traders are in long positions, which is a good additional signal for us (trading against the "crowd"). https://d.radikal.ru/d03/1905/42/9908164eef50.png Consider Short Positions: Given all these factors, we may consider a scenario of the breakdown of the support, which will allow us to open sales. The breakdown move must be keen and supported by the large volume, which will be a more reliable signal for entering the market. A stop loss may be placed above the breakdown volume bar. 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 -