Video Transcript:
Hello everyone, it’s Dale here with new day trading analysis. Today, I’d like to talk about USD/CAD. Just a heads up, there’s macro news concerning the Canadian Dollar today—specifically, Canadian inflation data, which is significant news that could cause severe volatility for the CAD. So, be careful around the time when the news is released. Now, let me show you the trading idea on the chart.
What you see before you is a 30-minute time frame of USD/CAD, and the level I wanted to talk about is right here, at 1.3761. If you look at the CAD here, you can see there’s a strong uptrend. When there’s an uptrend like that, I only look for long trades, such as this one. I do this using the Volume Profile, and I like to use significant volume bumps to jump into the uptrend in case there’s a pullback. You can look at this whole area, for example, like this. It doesn’t really matter if you use the profile over the entire trend or just part of it, because the heavy volume zone will stand out regardless of how you use the profile.
This is the heavy volume zone, and it’s basically telling us that as the buyers were pushing the price upwards, they were adding to their long positions here. Then they continued to push the price even higher. This heavy volume zone is important for the buyers because they placed many long positions there. So, if there’s a pullback, chances are that those buyers will become active again, pushing the price up from there.
At the top of this Volume Profile setup, you can also notice that this is the open of the week, which is a nice addition that strengthens the level. Also, this highlighted green zone is a Fair Value Gap concept from Smart Money trading, and here is the beginning of that Fair Value Gap. That’s the place from which I like to trade.
All these factors tell me that this is a strong level to trade from. Now, I just need to wait for a pullback and take it from there. However, there is one risky aspect here. Let me zoom in a bit. I would prefer this low to be a rejection of lower prices—like a normal rejection—not the open of the day, as seen here. The day opened here, and the price went upwards, so this is kind of a weird scenario, adding a bit of risk to the level. But aside from that, this is still a strong level to trade from.
By the way, there’s one more thing I forgot to mention. This level is actually a weekly Point of Control from the previous week. If you look at this gray profile, it shows the volume distribution for the entire previous week. The volumes in the previous week, meaning in this area, were right here, at this price level, which—as you can see—is at our support level here. So, that’s another thing that adds strength to our level.
This is how you can trade when there’s a trend. I can actually demonstrate this with a trade I had earlier today on EUR/USD. It was more or less the same scenario. Here, there’s a downtrend—by the way, this is a 30-minute chart. There was a downtrend, and within that downtrend, I identified this heavy volume zone here. Then, there was a pullback, and the price hit my level, which was here where you can see the red line. By the way, this is a level I published in my members’ area, and there was a beautiful reaction afterward.
This is how the setup is supposed to look. If you’d like to join us and get these levels on a daily basis, just visit my website, which is trader-dale.com. Here’s how it looks, and if you click this button, it will take you to a page where you can browse my trading education and custom-made tools.
Right now, I’m running a special Halloween sale, which means you can get these tools at a huge discount. There’s the Volume Profile Pack, focusing on Volume Profile trading, the Order Flow Pack, focusing on day trading with Order Flow, and the VWAP Pack, focusing on trading with VWAP. If you scroll down a bit, there’s a very special deal where you can get all three packs together for only $597. That’s the special Halloween sale, and the discount is available until the end of the month.
All right, that’s about it. Thanks for watching the video, and I’ll look forward to seeing you next time. Until then, happy trading!
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