Strong Bearish Signal: The price continued falling, so the local downtrend with this currency pair is going on. Moreover, this fall totally absorbed the previous rise, which is a good bearish signal. Volume Zones: It is necessary to point out the support level 1.1878 - 1.1887. The price is testing this level at the moment. Sentiment: This indicator shows that 55% retails traders are in long positions, which is a good additional signal for us (trading against the "crowd"). https://a.radikal.ru/a25/2103/8b/2dc21aaf823b.png Consider Short Positions: Given all these factors, we may regard a breakdown of the support level, which will consent us to open short positions. The move 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 100 pips.
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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