Skip to main content

AUD/CAD: Volume Profile and Price Action Analysis

Trader Dale - Free Book

Hello guys,

today’s focus will be on day trading analysis of AUD/CAD.

There was a trend development on many Forex pairs yesterday. AUD/CAD was not an exception.

A trend day usually creates many trading opportunities, like in here.

Volume Profile Analysis

If you use my Flexible Volume Profile on the downtrend that formed yesterday then you will see that there is one really significant area.

This area is around 0.9645 and it is significant because heavy volumes got traded there – you can tell because Volume Profile is really wide there.

What does this mean when you see it in a downtrend?

It means that strong Sellers were adding to their Shorts massively there. Then they pushed the price downwards some more.

When there is a pullback into this area at some point in the future those Sellers are likely to defend this place. They placed a lot of their Shorts there and this place is important for them.

This is why it should work as a Resistance and the price should bounce off this place.

This is one of my favorite Volume Profile setups and it is called the “Trend Setup“.

AUD/CAD; 30 Minute time frame:

Price Action Analysis

I really like to combine the Trend Setup with Price Action Setup called “Support →Resistance“.

It is my favorite two-setup combo. It goes like this:

First, you identify the Trend Setup – that significant volume cluster created within a trend.

Then, you want to see that the price has already reacted to this zone in the past. Like in the picture below.

The price bounced upwards off this zone twice on Monday. This means it was a Support. When the price went past the Support yesterday, this Support became a new Resistance.

The important thing is that this corresponds with the significant volume area which we identified using Volume Profile.

A combo of two independent trading setups like these makes the Resistance strong.

AUD/CAD; 30 Minute time frame:

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

Happy trading!

-Dale

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

Comments

Post a Comment

Popular posts from this blog

How to Track The Institutions With Volume Profile – Weekly Trading Ideas 6.4.2020

*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!
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

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