Skip to main content

NZD/USD: Volume Profile and Price Action Analysis

 Trader Dale - Free Book

Hello guys,

let’s check the NZD/USD today!

There was a pretty wild development after yesterday’s FOMC news. The price first went down after the statement release, but then it turned sharply and a strong buying activity started.

The newly formed uptrend continues until now.

When there is an uptrend I like to look for significant Volume Clusters using Volume Profile. Now, there are three such Volume Clusters in the immediate area. In this analysis, I am going to comment on the one in the middle.

Volume Cluster created within an uptrend usually indicates a place where strong Buyers were adding to their Long positions. Those places are important because those Buyers tend to defend these zones.

So, when the price makes it back into the area where the Volume Cluster got formed (around 0.7109) I expect that there will be a buying reaction = this area should work as a Support.

This setup is called the “Trend Setup“.

NZD/USD; 30 Minute chart

Price Action Confluence

If you follow me some time, then you probably know that I really like trading with confluences. Such a confluence is when two or more trading setups point to the same trading Support/Resistance.

In this case, there is also such a confluence.

The second trading setup which points to the 0.7109 support is a Price Action setup called “Resistance →Support“.

This setup is pretty simple. It says that when a Resistance gets breached it then becomes a Support.

If you look at the chart below, you can see that the price has already reacted around the 0.7109 zone in the past and that this zone worked as a Resistance. Today, the Resistance got breached and it turned into a Support.

The cool thing is that this happened around our Volume Profile level – that’s the confluence of two setups I am talking about!

NZD/USD; 60 Minute chart:

So, now two independent trading setups are pointing us to one strong trading level.

Do you want ME to help YOU with your trading?

Join one of my Volume Profile Educational courses and get my private trading levels, 15 hours of video content, my custom made Volume Profile indicators, and more!
Click Here

Yesterday’s Prediction → Result

Yesterday, I posted here a prediction of the USD/CHF.

You can read the whole analysis and prediction here:

USD/CHF: Volume Profile, Price Action, and VWAP Analysis

In the analysis, I showed you an intraday resistance at 0.8853. The price hit the resistance a couple of hours later and there was a super quick +20 pip reaction to it.

Unfortunately, the Resistance got hit during major US macroeconomic news release and taking this trade would be pretty risky.

So, yes – if you traded it then it was quick money, but the trade was VERY RISKY!

Here is 1 Minute chart which shows the reaction to the level:

I hope you guys liked today’s analysis. Let me know what you think in the comments below!

Happy trading!

-Dale

P.S. I have just released a new book called ORDER FLOW: Trading Setups. If you purchase one of my trading courses (now -50% Discounted – Christmas Sale), you will get the book for free!

Volume Profile Course – 50% discount

Order Flow Course – 50% discount

*The book is now EXCLUSIVE to members of my trading courses (not available in any store)

Order Flow Trading Setups eBook Cover Art

Comments

Post a Comment

Popular posts from this blog

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

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...
Post a Comment
Read more

Quick In & Out Trade on USD/JPY – Smart Money Concepts & Volume Profile

Video Transcript: Hello everyone, it’s Dale here. Welcome to the next video of the new series, where I’ll talk about my recent trades. Today’s trade is on the  USD/JPY . It was a very quick in-and-out trade, so let’s check it out. What you see before you is the 30-minute chart of the  USD/JPY , and the level I was trading from was this short level at  149.63 . The reasoning behind this level—let me zoom in a little so you can see this better—was the volumes that formed here. From this place, there was a sharp sell-off. Even though the volumes do not particularly stand out, what’s important is that from this zone, there was a strong sell-off. There was also a  Fair Value Gap . My software highlights that, but when the gap is filled, it’s not highlighted anymore. If I mark it for you, this was the Fair Value Gap, which is a setup from Smart Money Concepts. I like to trade from the beginning of the Fair Value Gap, which is here. This is also the beginning of a heavy vol...
Post a Comment
Read more