You can see this only with a volume-based indicator – like with my Flexible Volume Profile.
But, how do we know those BIG guys were entering Shorts? We know because from this rotation (volume accumulation zone) the price shot downwards and a strong sell-off started.
This indicates that strong sellers were building up their Short positions unnoticed (in the rotation area) and then they pushed (manipulated) the price downwards.
Pullback to 1.4140 = A Good Trading Opportunity
This is an information we can work with.
We now know a place where strong Sellers placed a LOT of their Short positions.
What will happen when the price makes it back to this area again at some point in the future?
Those Sellers are likely to defend this zone. It is important for them – because they placed a lot of their positions there.
They placed the most of them around 1.4140 – this is where the Volume Profile is the thickest.
For this reason, this place should work as a Resistance.
Strong sellers who placed their shorts there will want to defend this place. To push the price downwards from there again.