Strong Bearish Signal: The price showed a sharp drop supported by large institutional volume, which means that it's the smart money, that pushed the pair down. Volume Zones: This formed a new level of resistance, which contains large market participants volume and was created during this move - 108.47. Sentiment: This indicator shows that 93% retails traders are in long positions, which is a good additional signal for us (trading against the "crowd"). https://d.radikal.ru/d42/1906/8e/f39d56a151c9.png Consider Short Positions: Given all these factors, we should consider exceptionally short positions. We may enter the market after a slight and 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 -