Strong Bullish Signal:
The pair demonstrated an abrupt growth and broke down the previous resistance level. However, the price could not continue rising and corrected downwards. The fall was on the small volume, so we can't consider it as a reversal signal. Moreover, there is a strong local uptrend with the Pound.
Volume Zones:
The price is currently trading near the resistance level/local maximum 1.3737.
Sentiment:
This indicator shows that 78% retails traders are in short positions, which is a good additional signal for us (trading against the "crowd").
https://b.radikal.ru/b21/2101/84/a83f19fa9778.png
Consider Long Positions:
Given all these factors, we may regard a scenario of the breakout of the resistance, which will be a great bullish signal. The growth must be sharp and supported by the large volume, which will be a more reliable signal for entering the market. A stop loss may be placed below the breakout volume bar.
If the price goes on falling, we'd better stay out of the market.
Profit Potential:
More than 150 pips.
To learn more about order flow based volume trading, sentiment analysis and trading against the retail crowd see the educational article below -
The pair demonstrated an abrupt growth and broke down the previous resistance level. However, the price could not continue rising and corrected downwards. The fall was on the small volume, so we can't consider it as a reversal signal. Moreover, there is a strong local uptrend with the Pound.
Volume Zones:
The price is currently trading near the resistance level/local maximum 1.3737.
Sentiment:
This indicator shows that 78% retails traders are in short positions, which is a good additional signal for us (trading against the "crowd").
https://b.radikal.ru/b21/2101/84/a83f19fa9778.png
Consider Long Positions:
Given all these factors, we may regard a scenario of the breakout of the resistance, which will be a great bullish signal. The growth must be sharp and supported by the large volume, which will be a more reliable signal for entering the market. A stop loss may be placed below the breakout volume bar.
If the price goes on falling, we'd better stay out of the market.
Profit Potential:
More than 150 pips.
To learn more about order flow based volume trading, sentiment analysis and trading against the retail crowd see the educational article below -
