Strong Bearish Signal: The price demonstrated a huge drop supported by large institutional volume and broke through the previous support level. Moreover, increased negative delta only increases its value. Volume Zones: This formed a new level of resistance, which contains large market participants volume and was created during this move from 55.92 – 56.18. Sentiment: This indicator shows that 57% retails traders are in long positions, which is a good additional signal for us (trading against the "crowd"). https://b.radikal.ru/b20/1911/24/cf2ae45fe3a9.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 pips.
To learn more about order flow based volume trading, sentiment analysis and trading against the retail crowd see the educational article below -