AUD/CAD: Volume Profile and Price Action Day Trading Analysis

Hello guys,

in today’s day trading analysis I am going to focus on AUD/CAD.

The reason being is a nice “Volume Accumulation Setup” that I spotted there, on a 30 Minute chart.

Volume Profile Setup

On Friday, there was a rotation, from which an uptrend started (=strong buying activity).

This is a typical scenario the Volume Accumulation Setup is based on: First, a rotation and then a strong trend development – that’s what you want to see!

This tells us one thing – strong Buyers were building up their Long positions in that rotation. Slowly, unnoticed. When they have accumulated their positions, they started to push the price upwards aggressively.

How do we tell that there were heavy volumes accumulated in that rotation? By using the Volume Profile indicator!

AUD/CAD; 30 Minute chart:

This is a piece of information we can work with!

When the price makes it back into this heavy volume area we can expect those Buyers to defend this zone. It is important for them because they placed a lot of their Longs there. They won’t let the price shoot past this area without a fight!

This is the reason, why I think this zone around 0.9580 will work as a strong Support in the future. Now we just need to wait until the price reaches it.

Price Action Setup

As you probably know, I like to combine trading setups. The more trading setups point to a a trading level, the better.

In this case, there is a Price Action trading setup that nicely confirms our 0.9580 Support.

The thing is, that this 0.9580 Support zone worked as a Resistance in the past. You can tell because the price bounced away from this zone strongly before (on Thursday).

Then, on Friday this Resistance got breached.

When a Resistance gets breached, it then becomes a Support. This is an old Price Action setup I like to use.

I would not trade this as a standalone setup. However, the cool thing about this is that in this case, the newly formed Support nicely aligns with the Support we found using Volume Profile. That Support around 0.9580.

See? Nice combo of two trading setups. One is based on Volume Profile, the other on Price Action. Two independent setups point to the same Support.

AUD/CAD; 30 Minute chart:

It’s the combo of the two trading setups that makes this support strong!

I hope you guys liked today’s analysis. Let me know what you think in the comments below!

Happy trading,

-Dale

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

Comments

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

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

5 Character Traits of a Successful Trader – Tips & Tricks of the Pros!

Maybe you are interested in trading, and you have taken the first step by researching on forex trading. You might also be currently trading but going through a tough time with your results in the markets and dealing with the recurrent autosuggestion, telling you how this journey might not be for you or you are not capable of achieving successes in this journey. It is essential to know that you are not alone in this feeling, and before you fall into the rabbit hole of depression, feeling like a failure in yet another skill you have chosen. Let me make it clear; the answer is YES, anyone can achieve success in trading , including you. It would only cost you a few character trait adjustments. Before we delve in, it is vital to point out that success in re

Trader Dale - Volume Profile Trading Blog

Search This Blog