Strong Bearish Signal: The price demonstrated a huge drop supported by large institutional volume and broke through the previous support level. Moreover, the movement was supported by the large negative delta, which shows the presence of the large sales imbalance. Volume Zones: It is necessary to point out the new support level 1874.70. The price is currently trading near it. Sentiment: This indicator shows that 69% retails traders are in long positions, which is a good additional signal for us (trading against the "crowd"). https://c.radikal.ru/c25/2010/1c/c1657885ae9d.png Consider Short Positions: Given all these factors, we should consider exceptionally short positions. We may enter the market after a sharp breakdown of the new support level. The movement must be keen and supported by the large volume, which will be a more precise signal for entering the market. A stop loss should be placed above the breakdown volume bar. Profit Potential: Around 200 pips.
To learn more about order flow based volume trading, sentiment analysis and trading against the retail crowd see the educational article below -