Skip to main content

USD/JPY: Volume Profile & VWAP Analysis (24th July 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 day trading analysis. Today, I’d like to talk about the USD/JPY. What you see before you is the NinjaTrader 8 platform with my custom-made volume profile and VWAP indicators, and you’re looking at a 30-minute chart of the USD/JPY. Today, I’d like to discuss a newly formed resistance at 155.25.

This resistance is based on a couple of factors. The first is a volume profile setup. If you examine the trading activity using the volume profile tool, you can see a significant volume bump here. It’s not as strong as it could be, but with the confluence of other factors that I’m going to show you, this makes for a pretty strong zone. We have a downtrend with a significant volume bump here. Another factor that adds strength to this level is that this aggressive sell-off started from this heavy volume bump. If you’re familiar with smart money concepts, this is known as a fair value gap, and from there, we saw a strong sell-off. We have aggressive sellers who may have been building up their short positions here or adding to their positions, then aggressively pushing the price downwards. It is likely that when the price reaches this zone, the beginning of that heavy volume zone, there will be a reaction from those aggressive sellers again.

This is not the only thing about this level. Another factor is that if you look closely, the price made a very sharp reaction to this zone, not exactly to the level but very close to it. This indicates that it was a support level in the past, which got breached, turning it into new resistance. As you can see, it aligns with the level identified using the volume profile.

Additionally, at the top of all that, is the first deviation of the weekly VWAP, represented by the gray line here. The price tends to react to it when it’s trending. Right now, the price is moving below that first deviation. When this happens, the price tends to pull back to it and react, as shown in these examples. Ideally, the weekly VWAP will stay around the level at the time of the pullback, as this would increase the chances of a strong reaction. If the first deviation continues to trend downwards, the level remains strong, but it would be preferable if the first deviation were around at the time of the pullback.

These are the reasons why I like this level. Hopefully, we will see that pullback soon. To increase your chances of a successful trade, you can use order flow software to better time your trade entry or confirm your trade entry and better time your trade exit when the price approaches the level.

Now, there’s one more thing I wanted to show you. It’s a level on gold that I published a couple of days ago, so it’s an older level. You can find the original analysis on my website. Here, I wanted to show you this support level, which was based on the weekly point of control. This means the heaviest volumes throughout this week on gold were in this area. From there, strong buying activity started, and in the video, I mentioned that this should work as a strong support, and here’s the reaction. I hope you guys are trading it; it was a very nice reaction. Everyone who saw that analysis had the chance to jump in here and make a nice profit.

If you’d like to identify such levels yourself and get your hands on my custom-made volume profile, VWAP, and order flow indicators, head over to my website, trader-dale.com Click on the “Trading Course and Tools” button, which will take you to a page where I’m currently running a special Independence Day Sale. You can get my best educational and indicator packs at a massive discount. The volume profile pack will teach you everything about volume profile trading, and the VWAP pack will teach you everything about day trading with order flow. There are videos you can watch for more detailed information on what you’re getting. There’s also a special deal where you can get both the volume profile pack and the order flow pack together in a discounted bundle, available until the end of this month when the Independence Day sale ends.

Thanks for watching the video, and I look forward to seeing you next time. Until then, happy trading!

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

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

ORDER FLOW: How to Trade the Absorption Setup (Trade Entry Confirmation)

Video Transcript: Hello everyone, and in this video, I’d like to talk about order flow and one of my favorite confirmation setups in order flow. The confirmation setup is called the absorption, and I’ll show you an example of a trade I made a couple of days ago. I think this is the perfect example of how you can use the absorption setup to confirm your trade entry. So, let’s take a look at it. First, let me start by showing you the level I wanted to trade, and then I’ll show you the absorption setup. You’re looking at the  EUR/USD  30-minute chart, and I had a long level here, marked by this line. This was a long level based on a Volume Profile setup, focusing on those heavy volumes formed within this important rejection. So, this was the long level. What happened was that the price started to go into a sudden sell-off, and there wasn’t really any strong macro news behind this. I wasn’t really sure what was going on, but there was this sudden sell-off, this spike move. Because...
Post a Comment
Read more