GBPUSD SHORT on Order Flow - Follow the smart money!
Strong Bearish Signal:
The price tested the resistance level, but after the appearance of the large volume demonstrated an abrupt fall. The move was on the average volume, but totally swallowed the previous upward correction, which shows the weakness of buyers. Moreover, there is a strong downtrend, which is a good bearish signal.
Volume Zones:
It is necessary to highlight the level of support 1.3191, which is a local minimum. The price is trading nigh this mark at the moment.
Sentiment:
This indicator shows that 82% retails traders are in long positions, which is a good additional signal for us (trading against the "crowd").
https://b.radikal.ru/b02/2112/04/37eebd559c8d.png
Consider Short Positions:
Given all these factors, we may regard a breakdown of the support level, which will allow us to open sales. The move must be keen and supported by the large volume, which will be a more precise signal for entering the market. A stop loss may be placed above the breakdown volume bar.
Profit Potential:
More than 150 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 tested the resistance level, but after the appearance of the large volume demonstrated an abrupt fall. The move was on the average volume, but totally swallowed the previous upward correction, which shows the weakness of buyers. Moreover, there is a strong downtrend, which is a good bearish signal.
Volume Zones:
It is necessary to highlight the level of support 1.3191, which is a local minimum. The price is trading nigh this mark at the moment.
Sentiment:
This indicator shows that 82% retails traders are in long positions, which is a good additional signal for us (trading against the "crowd").
https://b.radikal.ru/b02/2112/04/37eebd559c8d.png
Consider Short Positions:
Given all these factors, we may regard a breakdown of the support level, which will allow us to open sales. The move must be keen and supported by the large volume, which will be a more precise signal for entering the market. A stop loss may be placed above the breakdown volume bar.
Profit Potential:
More than 150 pips.
To learn more about order flow based volume trading, sentiment analysis and trading against the retail crowd see the educational article below -
