Strong Bearish Signal: The price tested the resistance level and resumed falling. The move was sharp, although on the average volume. However, given the strong downtrend, we should consider it as a good bearish signal. Volume Zones: It is necessary to point out an important level of resistance 1.2400, which contains the large volume. Sentiment: This indicator shows that 92% retails traders are in long positions, which is a good additional signal for us (trading against the "crowd"). https://c.radikal.ru/c38/2110/43/d301d8064cee.png Consider Short Positions: Given all these factors, we should consider exceptionally short positions. We can 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 points.
To learn more about order flow based volume trading, sentiment analysis and trading against the retail crowd see the educational article below -