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AMAZON: Day Trading Analysis With Volume Profile


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Video Transcript:

Hello everyone, it’s Dale here. In today’s video, I’ll do an intraday trading analysis of Amazon. If you look at this chart, by the way, this is the TradingView platform with my estimated Volume Profile and VWAP indicators, and this is a 30-minute chart of Amazon. If you look at the overall chart, I didn’t even need to use a higher time frame; I just zoomed out a bit. In this case, it is very easy to see there’s a strong uptrend, which means we should prefer long trades.

Now, apart from this easily visible uptrend, there are also signs of aggressive buyers. For example, this sharp rejection of low prices, or this one, which continued into this aggressive buying activity. All those are signs of aggressive buyers. If you look at this recent price action area, the current high is very weak. The price tested many times but didn’t really break through, and I think there’s a lot of liquidity above those highs. So, I believe the market will want to go for that liquidity, which means going up first. This aligns with the overall view of Amazon, which is a strong uptrend, so I currently prefer longs.

Now, where from? If we zoom in some more, there’s a place that stands out. It is here; let me draw a line. It is around 188, that’s the support. If you look at the Volume Profile here on this weekly Volume Profile, which shows volume distribution over the whole week, this is the point of control of that Volume Profile, the weekly point of control. So, the heaviest volumes throughout that week were here. From this point of control, strong buying activity took place. This tells us that buyers were adding to their long positions here, building up their longs, and then they pushed the price aggressively upwards from there. This is an important zone for buyers, and they are likely to defend it. If there’s a pullback to this level, chances are that the buyers will become active, react, and the price will go upwards from there again.

Now, if I extend this line a bit, you can see that this support also worked as a resistance because the price was reacting to that in the past very nicely. So, because of that, because the price was reacting there, it was a resistance which, as the price went past it, turned into this support, right? And it is at the same place as we have that heavy volume zone, which definitely adds strength to our level because we have a combination of two trading setups, two independent trading setups, both pointing us to this support. What we need to do now is just wait for that pullback, and if it occurs, then take it from there. Chances are that there will be a reaction, and with part of the position, I wouldn’t be afraid to even target this zone with those weak highs.

Now, if you guys are interested in learning more about Volume Profile trading, then head over to my website, trader-dale.com. If you go to Trading Course and Tools, it will point you to a special page where I’m currently running an Independence Day sale. That means you can get my best educational and indicator packs discounted. So, that’s the Volume Profile pack and the Orlow pack. The Volume Profile pack will teach you everything about Volume Profile trading, and the Orlow pack will teach you everything about day trading with Orlow. There’s also a special bundle which includes both the Volume Profile and Orlow packs, and right now you can get those discounted together for only $597.

Alright, check those out; there are videos where you can watch what’s included so you can see everything that you are going to get. Alright, that’s about that. Thanks for watching the video, I hope you found it useful. I’ll be looking forward to seeing you next time, and until then, happy trading!

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