Strong Bearish Signal:
The price corrected upwards yesterday, but the move was smooth and insignificant. Furthermore, there is a strong downtrend with AUDUSD, which is still incline us to give preference to short positions.
Volume Zones:
We need to point out the new support level 0.6589 - 0.6600, which contains increased volume. However, the price did not show any sharp reaction on it and is still trading nigh this mark.
Sentiment:
This indicator shows that 95% retails traders are in long positions, which is a good additional signal for us (trading against the "crowd").
https://b.radikal.ru/b02/2002/d4/e25056f78b38.png
Consider Short Positions:
Given all these factors, we may reckon a scenario of the breakdown of the support level. It will allow us to open short positions. The drop must be keen and supported by the large volume, which will be a more precise signal for entering the market. A stop loss may be placed above the breakdown volume bar.
Profit Potential:
More than 80 pips.
To learn more about order flow based volume trading, sentiment analysis and trading against the retail crowd see the educational article below -
The price corrected upwards yesterday, but the move was smooth and insignificant. Furthermore, there is a strong downtrend with AUDUSD, which is still incline us to give preference to short positions.
Volume Zones:
We need to point out the new support level 0.6589 - 0.6600, which contains increased volume. However, the price did not show any sharp reaction on it and is still trading nigh this mark.
Sentiment:
This indicator shows that 95% retails traders are in long positions, which is a good additional signal for us (trading against the "crowd").
https://b.radikal.ru/b02/2002/d4/e25056f78b38.png
Consider Short Positions:
Given all these factors, we may reckon a scenario of the breakdown of the support level. It will allow us to open short positions. The drop must be keen and supported by the large volume, which will be a more precise signal for entering the market. A stop loss may be placed above the breakdown volume bar.
Profit Potential:
More than 80 pips.
To learn more about order flow based volume trading, sentiment analysis and trading against the retail crowd see the educational article below -
