Strong Bullish Signal:
The pair showed a sharp and confident growth and tested the level of resistance. The price did not break it out and corrected downwards. However, the price has already resumed rising and now is trading inside this area. It shows that sellers don't have enough power to reverse the local uptrend.
Volume Zones:
We need to point out an important level of resistance/local maximum 1.2155 - 1.2170, which contains the large volume.
Sentiment:
This indicator shows that 78% retails traders are in short positions, which is a good additional signal for us (trading against the "crowd").
https://a.radikal.ru/a35/2012/26/0b7ea4d0fcfe.png
Consider Long Positions:
Given all these factors, we may ponder a scenario of the resistance level breakout, which will allow us to open purchases. The rise must be keen and supported by the large volume, which will be a more secure signal for entering the market. A stop loss may be placed below the breakout 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 -
The pair showed a sharp and confident growth and tested the level of resistance. The price did not break it out and corrected downwards. However, the price has already resumed rising and now is trading inside this area. It shows that sellers don't have enough power to reverse the local uptrend.
Volume Zones:
We need to point out an important level of resistance/local maximum 1.2155 - 1.2170, which contains the large volume.
Sentiment:
This indicator shows that 78% retails traders are in short positions, which is a good additional signal for us (trading against the "crowd").
https://a.radikal.ru/a35/2012/26/0b7ea4d0fcfe.png
Consider Long Positions:
Given all these factors, we may ponder a scenario of the resistance level breakout, which will allow us to open purchases. The rise must be keen and supported by the large volume, which will be a more secure signal for entering the market. A stop loss may be placed below the breakout 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 -
