Strong Bearish Signal:
The demonstrated a huge drop supported by the increased institutional volume and totally absorbed the previous growth, which shows that bulls don't have power to continue rising. Moreover, the increased negative delta shows that there is a sales dis-balance, which means exceeding of short positions over long ones.
Volume Zones:
We need to point out the level of support/local minimum 1.2755.
Sentiment:
This indicator shows that 54% retails traders are in long positions, which is a good additional signal for us (trading against the "crowd").
https://c.radikal.ru/c24/2003/db/6918fb0078c4.png
Consider Short Positions:
Given all these factors, we may regard a scenario of the breakdown of the support level. The drop must be keen and supported by the large volume, which will be a more accurate signal for entering the market. A stop loss may be placed above the breakdown volume bar.
Profit Potential:
More than 130 points.
To learn more about order flow based volume trading, sentiment analysis and trading against the retail crowd see the educational article below -
The demonstrated a huge drop supported by the increased institutional volume and totally absorbed the previous growth, which shows that bulls don't have power to continue rising. Moreover, the increased negative delta shows that there is a sales dis-balance, which means exceeding of short positions over long ones.
Volume Zones:
We need to point out the level of support/local minimum 1.2755.
Sentiment:
This indicator shows that 54% retails traders are in long positions, which is a good additional signal for us (trading against the "crowd").
https://c.radikal.ru/c24/2003/db/6918fb0078c4.png
Consider Short Positions:
Given all these factors, we may regard a scenario of the breakdown of the support level. The drop must be keen and supported by the large volume, which will be a more accurate signal for entering the market. A stop loss may be placed above the breakdown volume bar.
Profit Potential:
More than 130 points.
To learn more about order flow based volume trading, sentiment analysis and trading against the retail crowd see the educational article below -
