Strong Bearish Signal: The price showed a huge drop supported by large institutional volume and broke through the previous support level. Besides it, the large negative delta implies that sellers were prevailing the market. Volume Zones: The farther fall was stopped by the new volume level of support 1.1185. Sentiment: This indicator shows that 81% retails traders are in long positions, which is a good additional signal for us (trading against the "crowd"). https://d.radikal.ru/d15/1906/99/8a5f4e85411d.png Consider Short Positions: Given all these factors, we should consider exceptionally short positions. However, we may enter the market after a sharp breakdown of the new support level on the large volume, which will be a more reliable and accurate 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 -