Strong Bullish Signal: The price demonstrated a sharp growth supported by the large volume, which is a good indicator of bulls strength. Volume Zones: We need to allocated an important level of support 1493.20, which contains the large volume. Sentiment: This indicator shows that 68% retails traders are in short positions, which is a good additional signal for us (trading against the "crowd"). https://b.radikal.ru/b40/1908/ce/b3c0e3e18375.png Consider Long Positions: Given all these factors, we should prefer a scenario of opening long positions. We may enter the market after a resumption of the keen rise of the price on the large volume, which will be a more accurate signal for entering the market. A stop loss may be placed below the level of support. Profit Potential: More than 200 pips.
To learn more about order flow based volume trading, sentiment analysis and trading against the retail crowd see the educational article below -