Skip to main content

NZD/CAD – Volume Profile & Order Flow Analysis


Today, I would like to have a closer look at NZD/CAD. What caught my eye here was a strong sell-off that occurred last week (13th May).
Such a strong sell-off is a sign of aggressive sellers jumping in and pushing the price downwards.
In this case, it is pretty easy to spot where those sellers were accumulating their selling positions before they started the aggressive sell-off.

Price Action

Price Action shows that there was a rotation before the sell-off started. Such a rotation is an ideal place for position accumulation.
The reason is that in a rotation those sellers could easily hide their intentions (of starting a sell-off) and slowly, unnoticed accumulated their short positions.

Volume Profile

If you look at the Weekly Volume Profile (on the left) then you can see massive volumes accumulated exactly in that rotation area.
In fact, the heaviest volumes throughout the whole week got accumulated there! (= Weekly Point Of Control).
After those volumes got accumulated → BOOM! A sell-off! It is this sell-off where the sellers were making money.
Now the price is slowly retracing back into this area (to test the Weekly POC at 0.8548).
I think that it will work as a strong resistance and that those sellers will want to defend their short positions.
It is likely, that they will start selling again and try and push the price downwards again.
Below is a 60 Minute chart of NZD/CAD with Weekly Volume Profiles:
Trader Dale - Free Book

Order Flow

We can also identify those sellers using Order Flow!
I zoomed into the rotation area which was formed before the sell-off started to show you how it looked like in there.
The thing which I think is the most important here is the High Volume Nodes. They are easy to identify (at last with my software) because they are printed in darker shades and put into a frame.
There are two especially strong ones, and the strongest one (1440) was formed just before the sell-off started.
Those were without any doubt strong sellers getting ready!
That’s a nice confirmation of the resistance we initially found using the Volume Profile! We can actually see the big guys getting ready here! Cool, right?
You know, I am really proud that we were able to make the Order Flow like this. I don’t think there is any other Order Flow software able to read Forex this way!
Below is NZD/CAD Order Flow. The footprints show 30 Minute candles and the volumes traded in them:
I hope you guys liked today’s analysis! Let me know what you think in the comments below!
Happy trading!
-Dale
PS. You can now get my new ORDER FLOW PACK (including Order Flow software, Order Flow Video Course, and Volume Profile Pack) here: ORDER FLOW PACK

Comments

  1. Phani Kumar7/20/20, 3:50 AM

    Hey, thanks for the information. your posts are informative and useful. I am regularly following your posts.
    Avanti Feeds Ltd

    ReplyDelete

Post a Comment

Popular posts from this blog

Recent Trade Breakdown: Combining Price Action & Volume Profile for Smarter Trades

Video Transcript: Hello everyone, it’s Dale here. In this new video series, I want to break down my recent trades. The goal of this series is to show you how I use my Volume Profile trading setups every day in real market conditions, so you can learn from both my wins and my mistakes. If you find this helpful, don’t forget to hit the like and subscribe buttons. Let’s dive in. What you see before you is a screenshot from my session yesterday. It’s taken from the live trading room we held in the  Funded Trader Academy . During that session, a new setup was forming on the  AUD/USD . This is the  AUD/USD  on a 30-minute timeframe, and the new setup was forming right here. There was a resistance level forming around  0.6364 . The reason behind this setup was based on a couple of factors. The main reason was a Volume Profile setup. If you look here at what I’ve highlighted, this area represents a heavy volume zone, which the resistance level was based on. You can see ...
Post a Comment
Read more

🎯 Top Volume Profile Levels to Trade This Week – 11th November 2024

Do you want ME to help YOU with your trading? Learn my proven Volume Profile & Order Flow trading strategies! Get my proprietary indicators and start making progress. We even set the indicators up for you so you can hit the ground running TODAY! Start Learning to Trade Now! Video Transcript: Hello, everyone! It’s Dale here with a new weekly trading ideas video. What you see before you is the chart from NinjaTrader 8 platform with my custom-made Volume Profile and VWAP indicators. This is the chart of  EUR/USD  on the 30-minute timeframe. I am strongly short-biased on the Euro because I see a strong sell-off as a reaction to the election. This strong sell-off, combined with the fundamentals of the U.S. presidential election, suggests that I should focus more on shorts for this pair. This means I use the Volume Profile over the recent area to look for significant volume zones. If you examine how the volumes were distributed this past Friday, there are two significant volume ...
Post a Comment
Read more

Bitcoin is Dropping Hard! Here’s Where Smart Money Will Buy Again

Video Transcript: Hello everyone, it’s Dale here. In today’s video, I’d like to talk about Bitcoin. The reason is that Bitcoin has been dropping like crazy, and a lot of traders are wondering where Bitcoin will go and what to expect. If I look at the chart and use Volume Profile, I would say that it’s pretty straightforward because Volume Profile very clearly shows the strongest support and resistance levels. So, let’s take a look at the chart, and let me show you. What you see before you is the daily chart of Bitcoin. This is the big picture, and as you can see, from the all-time high here, Bitcoin experienced quite a significant sell-off and is currently dropping. Right now, I don’t really see any strong support that would stand in the way of this strong sell-off. Let me use Volume Profile and show you what could actually stop the sell-off of Bitcoin. All right, so what I’m going to do is apply Volume Profile over this whole area to see the volume distribution. As you can see, there ...
Post a Comment
Read more