Skip to main content

EUR/GBP: Volume Profile And Price Action Analysis

 

Hello guys,

today, I will have a closer look at the EUR/GBP.

What caught my eye at first was a strong selling activity yesterday (that huge red candle you can see in the picture below).

Such a strong and rapid sell-off is a sign of aggressive sellers.

Those sellers were most likely building up their Short positions in the rotation that took place before the sell-off.

You can see those volumes nicely with my Flexible Volume Profile indicator.

EUR/GBP; 30 Minute chart:

Those heavy volumes that were accumulated before the sell-off are quite important and I think those were the BIG institutional traders getting ready before manipulating the price downwards.

When the price makes a pullback into this area again (starting around 0.8546) then those BIG guys will want to defend this zone and push the price downwards again.

This is what should make this zone a strong Resistance.

A Two-Week POC

Another nice addition to this Resistance is that it is a very significant volume-based level even from the bigger perspective.

This Resistance also represents a place where the heaviest volumes throughout the last two weeks got traded! This means it is a two-week POC (Point Of Control).

You can see that on the picture below, where I merged two weekly Volume Profiles into one two-week Volume Profile.

This is another thing that adds strength to our Resistance around 0.8546.

EUR/GBP; 60 Minute chart; Weekly Volume Profiles:

I hope you guys liked my analysis! Let me know what you think in the comments below!

Happy trading,

-Dale

Comments

  1. Kmilo7/30/21, 5:38 PM

    Hola, podrías poner tus libros de Kindle en español por favor? Gracias

    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...
8 comments
Read more

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...
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