USDJPY SHORT on Order Flow - Follow the smart money!
Strong Bearish Signal:
The price tested the support level a couple of times, but failed to break it down. However, the pair is still trading near it and given the recent sharp drop, we still may give preference to sales.
Volume Zones:
We need to allocate the support level 109.82. The large volume is concentrated above this mark, so we can assume that the smart money are planning to break it down.
Sentiment:
This indicator shows that 74% retails traders are in long positions, which is a good additional signal for us (trading against the "crowd").
https://imagizer.imageshack.com/img924/3895/kIhiCY.png
Consider Short Positions:
Given all these factors, we still may prefer a scenario of opening short positions. We may enter the market after a continuation of the drop and the confident breakdown of the support level. The sink must be supported by the large volume, which will be a more secure signal for entering the market. A stop loss may be located above the breakdown volume bar.
Profit Potential:
Our first target is the level 108.60.
To learn more about order flow based volume trading, sentiment analysis and trading against the retail crowd see the educational article below -
The price tested the support level a couple of times, but failed to break it down. However, the pair is still trading near it and given the recent sharp drop, we still may give preference to sales.
Volume Zones:
We need to allocate the support level 109.82. The large volume is concentrated above this mark, so we can assume that the smart money are planning to break it down.
Sentiment:
This indicator shows that 74% retails traders are in long positions, which is a good additional signal for us (trading against the "crowd").
https://imagizer.imageshack.com/img924/3895/kIhiCY.png
Consider Short Positions:
Given all these factors, we still may prefer a scenario of opening short positions. We may enter the market after a continuation of the drop and the confident breakdown of the support level. The sink must be supported by the large volume, which will be a more secure signal for entering the market. A stop loss may be located above the breakdown volume bar.
Profit Potential:
Our first target is the level 108.60.
To learn more about order flow based volume trading, sentiment analysis and trading against the retail crowd see the educational article below -
