Skip to main content

AUD/CHF: A Complete Intraday Chart Analysis


In my yesterday’s article, I showed you how I look for confluences of trading setups to identify strong supports and resistances. If you missed the article, then you can read it here:
EUR/CAD: Volume Profile + VWAP Daily Analysis
Because practice makes perfect, I will do a very similar analysis today. This time I will focus on AUD/CHF.

Volume Profile setup

The first thing that caught my eye here today, was a rotation and a strong buying activity starting from it. This is usually a sign of buyers who were building up their positions in the rotation, and who aggressively pushed the price upwards later.
I used my Flexible Volume Profile to look into the most recent area to see how the volumes were distributed there. I saw what I expected – heavy volumes accumulated around 0.5853.
Heavy volumes make this area a support. When the price makes a pullback into this area again, then the buyers who were building up their positions here should try and push the price upwards again. They will do so because they will want to defend their long positions.
Check it out on the picture below (AUD/CHF; 30 Minute TF):
The Special Webinar -50% Sale ends this Friday 27th. You can get it here:
Elite Pack -50%  SALE

Price Action setup

Apart from the setup I mentioned above, there is also a Price Action setup I like to trade. This setup says that a breached support becomes a resistance (and vice versa). I identify old supports and resistances by simply looking at the charts looking for significant swing points. Those were old supports/resistances.
If you look at the picture below, you can see that there were three such swing points very close to the 0.5853 level. I marked those swing points in blue. This shows that the price jumped off the same area three times in the past and therefore, I consider it a resistance. This resistance got broken and the price went past it today. This means that the former resistance has now become a support.
You can learn more about this setup here:
Price Action Strategy: Support Becoming Resistance
Below is a 60 Minute chart of AUD/CHF:

VWAP setup

Apart from the Volume setup and the Resistance → Support setup, there is also one more setup forming.
It is the VWAP Trend setup (the #2 setup I showed at my recent VWAP webinar).
If you look at the picture above, then you can see that the 1st VWAP deviation is moving upwards (I am using the Weekly VWAP). This tells me that the volumes are shifting upwards and that there is an uptrend. In a situation like this the 1st deviation should work as a support. The deviation is being calculated in real time and if the price comes back to the 0.5853 area soon (for example today or tomorrow), then I think there is a good chance it will meet with the 1st Deviation – which could by that time make it to this level (I indicated it in the chart). This would make another nice confirmation.
As you can see, we have 2, possibly 3 trading setups which confirm each other. This is what I like to see and trade.
I hope you guys liked today’s analysis. Let me know what you think in the comments below!
Stay safe and happy trading!
-Dale

Comments

  1. Hey, thanks for the information. your posts are informative and useful.
    Greaves Cotton Ltd

    ReplyDelete

Post a Comment

Popular posts from this blog

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 i...

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...