CAD/JPY: Volume Profile, VWAP, And Price Action Analysis

Hello guys,

in today’s day trading analysis I will have a closer look at the CAD/JPY.

What initially caught my eye there was a newly formed uptrend – a strong buying activity yesterday.

Then I checked the Volume Profile and I saw that this strong trend activity started from the Weekly POC (Point Of Control). BINGO!

Let me now elaborate a bit…

A Weekly POC is a place where the heaviest volumes were accumulated throughout the whole week. It is very often the most important place in the chart – at least if you are a day trader.

Big trading institutions are slowly building up their huge trading positions in places like this. The massive volumes we see there are most likely theirs (a big part of it is theirs to be precise).

After they have accumulated their positions, they manipulated the price to go into a trend. Like in here.

There is an uptrend, and that means that the BIG guys were entering Longs!

CAD/JPY; 60 Minute chart:

Wait For A Pullback

When there is a pullback to this zone again, those BIG guys will want to defend it. This zone (starting at 85.82) is important for them because they placed a lot of their trades there.

They will want to push the price upwards from there again. And this is what makes it a strong Support!

That’s why I am always interested in Weekly POC from which a strong trend starts.

I call this Volume Profile setup the “Volume Accumulation Setup“

VWAP Setup

A nice little addition to our Support is the 1st VWAP Deviation.

It is currently very close to our Support and if it stays in this area when the price makes a pullback there, then we will have a very nice trade confirmation!

This VWAP setup is called the “VWAP Rotation Setup“

CAD/JPY; 60 Minute chart:

If you would like to learn more about VWAP and how to use it in your trading, then watch this free webinar recording:

WEBINAR: VWAP Trading Strategies

I hope you guys liked my analysis! Let me know what you think in the comments below!

Happy trading,

-Dale

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