Strong Bearish Signal:
The price showed a sharp drop supported by large institutional volume, which means that it's the smart money, that pushed the pair down.
Volume Zones:
This formed a new level of resistance, which contains large market participants volume and was created during this move - 108.47.
Sentiment:
This indicator shows that 93% retails traders are in long positions, which is a good additional signal for us (trading against the "crowd").
https://d.radikal.ru/d42/1906/8e/f39d56a151c9.png
Consider Short Positions:
Given all these factors, we should consider exceptionally short positions. We may enter the market after a slight and 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 100 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 showed a sharp drop supported by large institutional volume, which means that it's the smart money, that pushed the pair down.
Volume Zones:
This formed a new level of resistance, which contains large market participants volume and was created during this move - 108.47.
Sentiment:
This indicator shows that 93% retails traders are in long positions, which is a good additional signal for us (trading against the "crowd").
https://d.radikal.ru/d42/1906/8e/f39d56a151c9.png
Consider Short Positions:
Given all these factors, we should consider exceptionally short positions. We may enter the market after a slight and 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 100 pips.
To learn more about order flow based volume trading, sentiment analysis and trading against the retail crowd see the educational article below -
