Trader Dale - Volume Profile Trading Blog

Price Action Analysis    Today, I will do an intraday analysis of CAD/JPY. What caught my eye when I went through the charts in the morning, was that there was a rotation from which strong buying activity started. This usually means that there were buyers entering their long positions in that rotation. After they have entered their longs, they started aggressive buying to push the price upwards – to make money on the longs which they placed in the rotation. I am always interested when I see Price Action like this. *I call this a Volume Accumulation setup and you can learn more about it here: Volume Profile Setups Volume Profile Analysis My next step was that I used my Flexible Volume Profile to look at how the volumes were distributed yesterday. The heaviest volumes were in the rotation area, and the heaviest volume peak (where most of the trades got placed) was around 76.38. This is where the buyers placed most of their...

The Order Flow is a software that reads all the trades that are filled in the market, and then it prints them in a chart so you can read them. It also shows you if the trade was filled at Bid or on the Ask side. If you take all that and print it into one chart, then it could become a bit overwhelming and confusing. Nobody will ever be able to read all the numbers jumping in and make head or tails out of them. That would be like reading in the Matrix… It is just too much information to process. That’s why we need to visually distinguish the important info. If I simply print all the data coming in into a chart, then it will look like the picture below. What helps is the green/red colors and also the different shades. But still, if you have only a little experience with the Order Flow, then it is hard to know what exactly to look for. Below is a 30 Minute Order Flow chart of the EUR currency futures (6e 06-20) ...

This article is a part of a three-part Beginners Guide to VWAP. Here are links to all three parts: Beginners Guide to VWAP Part 1: What is VWAP Beginners Guide to VWAP Part 2: VWAP Trading Setups Beginners Guide to VWAP Part 3: Where to get VWAP & Setup Guide A good quality VWAP It is very important to have a good quality VWAP indicator which has all the functions you need. The most important functions and features are:  VWAP (and its Deviations) are calculated correctly (there are many VWAPs around which have the calculation wrong).  VWAP is able to calculate the 1st and 2nd VWAP deviations .  You can switch between Daily/Weekly/Monthly and Yearly VWAP depending on your trading style (more about that later in the article).  Prints a line where the previous session of VWAP and Deviations ended.  You can use ...

*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. If you would like to learn to trade with Volume Profile and to trade with me every day, then join my Trading Course!

Yesterday, I wrote an article about VWAP trading setups. I showed you how to use VWAP when there is a rotation and also how to use it in a trend. If you missed it then you can read the article here: VWAP Trading Setups Today, I will do an intraday analysis of the AUD/NZD and I will use VWAP and Volume Profile just the way I showed you in the article yesterday. Identify the Trend The first thing to do is to identify whether there is a rotation or a trend. In this case it is pretty simple. The 1st VWAP deviation (Weekly VWAP) is moving upwards. This means that the price and volumes are shifting upwards and that there is an uptrend. In this case you could also tell by just looking at the price action without using the VWAP. Sometimes it is not so clear as here though… VWAP Trend Setup When there is a trend you want to see the price moving above the 1st Deviation and make pullbacks to it . Then yo...

This article is a part of a three-part Beginners Guide to VWAP. Here are links to all three parts: Beginners Guide to VWAP Part 1: What is VWAP Beginners Guide to VWAP Part 2: VWAP Trading Setups Coming soon… In this article I am going to to break down to you my two favorite VWAP setups. You can use those setups on any trading instrument you want, and also on any time frame you want. I prefer to use 60 Minute and 30 Minute time frame. Setup #1: VWAP Rotation Setup I trade this setup when the price is in a rotation. To identify a rotation I use VWAP 1st Deviations – those are the grey lines. If they both move horizontally (sideways), then there is a rotation. When the market is in a rotation, then those 1st Deviations work as support and resistance zones. Apart from my other trading strategies , I consider those Deviations strong support and resistance zones even after they get tested for the fir...

*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: If you would like to learn to trade with Volume Profile and to trade with me every day, then join my Trading Course!

VWAP DEFINITION: VWAP stands for Volume Weighted Average Price. It is a trading indicator that shows where the “fair value” of the instrument is. It is calculated using PRICE and VOLUMES. How does VWAP work? WVAP is a simple line that shows on a price chart. It shows where the “fair value” of the trading instrument is. If the price is above this line, then the instrument is overpriced and its price should drop back to the VWAP line. If the price is below the line, then it is undervalued and it should move upwards back to the VWAP line. How is VWAP different to EMA, SMA, and other standard Average indicators? Standard indicators that show the average price (EMA, SMA, …) are calculated using two variables: PRICE and TIME . VWAP brings VOLUME into the equation. It is calculated using three...

Some of you probably know that I am developing my own Order Flow software. It is not 100% ready for release yet, mostly because I still need to finish a video course that will go with it. I guess that all will be finished within a month or so… (no guarantees :)) My plan was to present it to you when it was all 100% done and finished but I just couldn’t wait! So this will be the first short article about using the Order Flow in real trading. *I am not going to talk about all the features and strategies here (you will learn all that in the Order Flow Video Course) but I will just jump right into it and show you how to use Order Flow in your trading. Order Flow as a confirmation to Volume Profile One of the ways you can use the Order Flow is to look for a confirmation in strong support/resistance zones. As an example, I will use a support which I showed you on Tuesday in a Weekly Trading Ideas video. This one: How To Trade Th...