Trader Dale - Volume Profile Trading Blog

In yesterday’s post I was talking about an intraday trading setup which you can use when market opens with a gap. If you missed it, then you can read it here: Gap Trading Setup Today, I would like to have a look at more long-term analysis which can be used for planning your swing trades. Swing trading vs. Intraday trading If I had to choose between intraday trading and swing trading, then my choice would be swing trading. The reason is that swing trading it is less time consuming, there are lower chances for you to make some sort of mistake, and also all kinds of trading instruments really nicely react to higher time frames (like Daily). Today, I will analyze the AUD/JPY and I will use a Daily chart. Daily charts are my favorite for making swing trade analysis. Price Action Analysis Let’s first start with a simple Price Action analysis. There were some pretty strong and aggressive rejections of ...

In a Weekly Ideas video , which I posted here on Monday, I was talking about gaps that got created on the market open on Monday. In this post, I would like to follow up on this video and talk more about the gaps and most importantly about one cool trading setup ! Unlike for some other trading instruments (for example stocks) gaps are pretty rare on forex . Forex runs 24/5 so, the only time they can occur is when the market opens on Monday. Gaps Tend to Get Filled On forex, gaps tend to get filled . If there is a small gap and no major news that would have caused it, then the gap gets usually filled pretty soon (in a matter of hours). If it is news-related and the gap is bigger, then it can stay not filled longer. Usually, max a few days. Then in most cases, the gap gets filled. Gap Trading Setup – Explained There is a nice trading setup you can trade when there is an opening gap. If there are he...

Today, I am going to do a swing trade analysis of CHF/JPY forex pair. I usually do swing trade analysis on a Daily time frame. This time frame helps me to see the big picture (which is needed for swing trading). Trend Setup on CHF/JPY The CHF/JPY was in a trend since the end of November 2019 . Strong buyers were pushing the price upwards. When I see a strong trend like this I use my Flexible Volume Profile tool and I look into the trend area. What I want to see there, is a nicely visible Volume Cluster . In such a Volume Cluster, volumes are accumulated. If there is an uptrend, then it means, that buyers were adding to their positions there (in this Volume Cluster). When the price returns back to this Volume Cluster, then it usually works as a support/resistance. This is the case of the CHF/JPY. Strong uptrend with nice Volume Cluster in the middle. When the...

*Disclaimer: Presented opinions, trades and trading ideas on the markets and charts is not advice nor a trading recommendation. It is general information and it is for educational purposes only. **You can learn more about my trading setups in my new book: VOLUME PROFILE: The insider’s guide to trading If you would like to learn to trade with Volume Profile and to trade with me every day, then join my Trading Course !

ECB Macro News The biggest thing yesterday was without any doubt the ECB Meeting and the following Press Conference. It was not only important from the fundamental standpoint, but also because it helped EUR/USD to break out of a price channel and travel quickly downwards. Before the ECB macro news came out, the price was in rotation. What do you think happened in this rotation? In my opinion, the big guys were building up their selling positions there and then when the ECB event came up, they started aggressive selling activity to push the price downwards. Use Volume Profile after the news – Volume Accumulation Setup So, the best thing you can do in such a situation is to use my Flexible Volume Profile and look into the rotation area to see how the volumes were distributed there and where exactly the volumes were the heaviest (this place is called Point of Control = POC). Why? Because at POC, the big guys (big financial ins...

If you ask me what Volume Profile setup I like the most, then my answer would be Volume Accumulation Setup (explained more in detail here: Volume Profile Setups ). What I like even more than that is when two (or more) trading setups align and they both point to one support/resistance. This is the case on today’s EUR/GBP. Volume Accumulation Setup on EUR/GBP In the picture below, there is EUR/GBP, 30-minute chart. In this chart, there was a heavy volume area , from which strong and aggressive selling activity started. This makes me believe that there were big institutional sellers building-up their selling positions (in the rotation). After they entered their positions, they pushed the price downwards. When the price makes it back to the area, where they were accumulating their positions then it is likely that those big sellers will start selling again. ...

In yesterday’s post, I was talking about intraday resistance on USD/JPY . I said it was a bit risky scenario because this resistance went against a long-term uptrend (therefore it was a counter trend resistance). Today, I would like to look more into the big picture of USD/JPY and comment on the strong long-term uptrend. How to enter a trade in a trend When I see a strong trend, I always look for ways how to jump in the trend and participate in it. I never jump in it without giving it a thought. I always wait for a pull-back before I enter the trade. In other words – I never enter long when the price is at it’s highs (as well as I never enter shorts when the price is at it’s lows ). A significant area on USD/JPY So, let’s have a look at the USD/JPY now. If you look at the Daily chart, you can see strong buyers pushing the price up. The price went through a pretty signific...

A New Counter-trend Resistance on USD/JPY The USD/JPY is from the longer-term perspective in an uptrend. There were signs of strong and aggressive buyers pushing this pair upwards. More about this in my Weekly Trading Ideas video: A Risky Situation on the USD/JPY For many days there were only aggressive buyers but no aggressive sellers. This changed in today’s Asian session when Bank of Japan Monetary Policy Statement came up. It is not really important what the statement said. Important is what the chart did as a reaction USD/JPY, 60 Minute chart: Whenever I see a strong and aggressive buying or selling activity (like those areas marked on the chart), I am very interested in volumes around those areas. So today, there was a strong selling and I was interested in the rotation which took place before the selling started. I used the...

How to Trade With Volume Profile in the Trend – Weekly Trading Ideas 20.1.2020 *Disclaimer: Presented opinions, trades and trading ideas on the markets and charts is not advice nor a trading recommendation. It is general information and it is for educational purposes only. **You can learn more about my trading setups in my new book: VOLUME PROFILE: The insider’s guide to trading If you would like to learn to trade with Volume Profile and to trade with me every day, then join my Trading Course !

*Disclaimer: Presented opinions, trades and trading ideas on the markets and charts is not advice nor a trading recommendation. It is general information and it is for educational purposes only. **You can learn more about my trading setups in my new book: VOLUME PROFILE: The insider’s guide to trading Video here:  https://www.trader-dale.com/a-risky-situation-on-usdjpy-weekly-trading-ideas-13-1-2020/ If you would like to learn to trade with Volume Profile and to trade with me every day, then join my Trading Course !

*Disclaimer: Presented opinions, trades and trading ideas on the markets and charts is not advice nor a trading recommendation. It is general information and it is for educational purposes only. **You can learn more about my trading setups in my book: VOLUME PROFILE: The insider’s guide to trading If you would like to learn to trade with Volume Profile and to trade with me every day, then join my Trading Course !