Strong Bearish Signal: The price demonstrated a huge drop supported by the large institutional volume and broke through the previous support level. Moreover, the move was supported by the huge negative delta, which shows that sellers are prevailing the market now. Volume Zones: This formed a new level of resistance, which contains large market participants volume and was created during this move from 1.3600 – 1.3607. 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/d13/2109/95/690d9fc26d1a.png Consider Short Positions: Given all these factors, we should consider exceptionally short positions. We may 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 150 points.
To learn more about order flow based volume trading, sentiment analysis and trading against the retail crowd see the educational article below -
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