Strong Bearish Signal: The price demonstrated a sharp drop supported and now is testing the level of support. The sink was supported by the large volume + increased negative delta, so that we may assume that it's the smart money, who pushed the price down. Volume Zones: It is necessary to point out the level of support/local minimum 50.95. Sentiment: This indicator shows that 89% retails traders are in long positions, which is a good additional signal for us (trading against the "crowd"). https://d.radikal.ru/d05/1906/21/09f64d9aff28.png Consider Short Positions: Given all these factors, we may regard a scenario of a breadown of this mark, which will consent us to open short positions. The breakdown movement must be keen and supported by the large volume, which will be a more accurate signal for entering the market. A stop loss should be placed above the breakdown volume bar. Profit Potential: More than 200 points.
To learn more about order flow based volume trading, sentiment analysis and trading against the retail crowd see the educational article below -