Strong Bearish Signal:
The pair tested the resistance level and then showed a huge drop supported by large institutional volume, so we may admit that exactly the smart money pushed the price down. Moreover, the movement was supported by the large negative delta, which means that sellers were prevailing the market.
Volume Zones:
We need to allocated the volume level of resistance 1.2960, which has already been tested, that enhances it's importance.
Sentiment:
This indicator shows that 87% retails traders are in long positions, which is a good additional signal for us (trading against the "crowd").
https://b.radikal.ru/b39/1904/38/f3a8c2e50d81.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 120 points.
To learn more about order flow based volume trading, sentiment analysis and trading against the retail crowd see the educational article below -
The pair tested the resistance level and then showed a huge drop supported by large institutional volume, so we may admit that exactly the smart money pushed the price down. Moreover, the movement was supported by the large negative delta, which means that sellers were prevailing the market.
Volume Zones:
We need to allocated the volume level of resistance 1.2960, which has already been tested, that enhances it's importance.
Sentiment:
This indicator shows that 87% retails traders are in long positions, which is a good additional signal for us (trading against the "crowd").
https://b.radikal.ru/b39/1904/38/f3a8c2e50d81.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 120 points.
To learn more about order flow based volume trading, sentiment analysis and trading against the retail crowd see the educational article below -
