Skip to main content

EUR/USD: Volume Profile & Price Action Analysis


Trader Dale - Free Book
In my yesterday’s analysis, I talked about combining Volume Profile (the Trend Setup) with Price Action (Support→Resistance Setup) to create a powerful two setup combo.
If you missed it then you can read it here:
Volume Profile & Price Action Setup Combo
Today, I will show you a very similar example, because practice makes perfect.
This one is on my favorite trading instrument EUR/USD.

Volume Accumulation Setup

There was a very nice and tight price rotation yesterday. From that rotation, a strong buying activity started. This buying activity resulted in an aggressive 100 pip movement.
This strong up move indicates that there was some serious buying going on inside that rotation. Buyers were entering long positions there slowly and without being noticed.
After they had entered their longs, they started pushing the price upwards – which snowballed and resulted in a strong uptrend.
For me, the most important thing here is to know, where the buyers entered most of their longs.
I used my Flexible Volume Profile to look inside that rotation area. As you can see from the picture below, the heaviest volumes got accumulated at 1.1443.
When the price reaches this area again at some point in the future, I expect that the buyers from this area will become active again and that they will push the price upwards from there again. This is why I think the 1.1443 will work as strong support.
I call this the Volume Accumulation Setup and you can learn more about it for example in this recording of my webinar about trading with Volume Profile:
Volume Profile Webinar
EUR/USD, 30 Minute chart:

Do you want ME to help YOU with your trading?

Join one of my Volume Profile Educational courses and get my private trading levels, 15 hours of video content, my custom made Volume Profile indicators, and more!
Click Here

Price Action

Apart from the volume-based setup, there is also the same setup I talked about in my yesterday’s article – the Resistance → Support setup (CLICK TO LEARN MORE)
As you can see from the picture below, the price reacted very nicely tho this 1.1443 area in the past. There were several reactions and every time the price bounced off this level. It worked as a strong resistance.
Now, when this resistance got breached, it became a support.
This is an old Price Action setup, and one of the few I like to use. I rarely trade it as a standalone setup but I really like to trade it when it is in confluence with Volume Profile, like in this case.
EUR/USD, 60 Minute chart:
I hope you guys liked today’s analysis. Let me know what you think in the comments below!
Happy trading,
-Dale

Comments

Post a Comment

Popular posts from this blog

Beginners Guide to Order Flow PART 1: What Is Order Flow?

DEFINITION: Order Flow is an advanced charting software which enables you to read all trading orders that are processed in the market. It helps to track the BIG financial institutions through the trades they make. Most people get confused when they open up a chart with Order Flow for the first time. There is no shame in that. Order Flow shows so many information and it is easy to get overwhelmed and confused if you don’t know what to look for! This Beginners Guide will teach you how to understand how Order Flow works and how you can use it in your trading! In this 1st part of the Order Flow Guide I will show you around the Order Flow interface. Footprints The Order Flow does not show standard candles, but it shows FOOTPRINTS . A footprint shows not only Open, High, Low, Close (as standard candles) but it also shows orders traded in that candle. Orders can be...
Post a Comment
Read more

How To Trade The Point Of Control (POC)

DEFINITION: Point Of Control (= POC) is a price level at which the heaviest volumes were traded. The most important thing that the Volume Profile indicator shows is the POC. I dare say that if you used Volume Profile only for the purpose of identifying the POC, you would be a way better and trader then 99% of the retail traders. No matter what trading strategy you trade. Why do I say this? Why is POC so important? Point Of Control is so important because it shows the place where the most trading took place – where the biggest trading positions were accumulated. POC shows the BIG guys! Who accumulates those huge trading positions? The BIG guys – that’s the big financial institutions like hedge funds, pension funds, huge banks, etc… It is those BIG guys who move and manipulate the markets. It would be a huge advantage to know where they placed most of their positions, right? The good news is th...
Post a Comment
Read more

NZD/CHF – How To Trade The “b-Shaped” Profile

Today’s intraday analysis will be on  NZD/CHF  and I will start by talking about the structure of the  Weekly Volume Profile . Weekly Volume Profile structure In the previous week, there was a  “b – shaped” Volume Profile histogram formed. b – shaped histogram means that the shape of the histogram  looks like the letter “b”. It says that the market sees the value at the bottom half of the profile while rejecting the upper half. If you look at the picture below, you can see that there was a  rotation  (Monday, Tuesday), then strong  buying activity  (Wednesday), and then an immediate  rejection and a sell-off  (Thursday). Then again a  rotation  on Friday. One of the most important things to notice in a b – shaped profile is a  volume cluster created in the rejection area. In this case, there were two of them. Such a  volume cluster  indicates a place where the  sellers were...
Post a Comment
Read more