Trader Dale - Volume Profile Trading Blog

  CAD/CHF – My favorite combo of 2 trading setups! Today, I would like to show you  my favorite setup combo . This combo consists of a  Volume Profile setup  and  Price Action setup . It formed on Tuesday on  CAD/CHF  and it is best seen on a  30 Minute or 60 Minute time frame. Volume Profile setup As the price was pushed down into a new downtrend on Tuesday, there was a little rotation around the middle of the down move.  In this little rotation, pretty heavy volumes got traded. You will see this when you use my  Flexible Volume Profile  on the whole trend area – as I did in the picture below. Those volumes created a  heavy volume cluster  which tells us this: Sellers who were pushing the price downwards were adding to their short positions in this area . From there, they pushed the price even lower, and the downtrend continued. This heavy  volume cluster is now an important place  for those sellers because they...

Today’s analysis will be an  intraday analysis of AUD/JPY . What caught my eye here first was  a strong selling activity yesterday . There was a downtrend without any major pullback almost the whole day. Sellers were quite clearly dominating this market. Where did this downtrend start? In a place where most of trends start – in a long rotation. This rotation took place on Monday and also in yesterday’s Asian session. Since a downtrend started from this rotation I expect that strong  sellers were accumulating their short positions in that rotation.  When they finished that, they pushed the price into a sell-off where their positions started to make money. I used my  Flexible Volume Profile  to look inside this rotation area to see how the volumes were distributed there. The  Point Of Control (POC)  of this rotation area was at  77.34. That’s where most of the volumes got traded. Because of that, this is the place that I believe the strong sell...

Do you guys care to trade something bit more “exotic”? I am personally not much into day trading such pairs as USD/SEK because of big spreads and worse liquidity. But with swing trading and long-term investing it is a whole different story. The reason is that with longer-term trades spreads don’t play such an important role. The same goes for liquidity. So, let’s now have a look at swing trading analysis of USD/SEK! What caught my eye here was a strong downtrend which started in March. Within this downtrend, there was a rotation in June. In this rotation, there were pretty massive volumes traded. I identified that using my Flexible Volume Profile on the whole trend area. From this rotation, the downtrend continued. This means that the volumes accumulated in this rotation were mostly sellers entering more short positions and then making another push. For this reason, it is li...

Video summary Market Replay is a build-in (free) function in NinjaTrader 8 platform. You need to disconnect from your datafeed first, and then you choose Playback Connection as your “datafeed”. Then you can replay any trading situation from the past at any speed you want and with any indicators you want. This is especially useful with Order Flow indicator. In the video, I went through a trade that I took based on an analysis I showed in advance to members of my Trading Course . The support I took was based on the Volume Accumulation setup . When the price hit the level there was a nice confirmation on Order Flow. I call this kind of confirmation the Limit Order Confirmation because the long level got confirmed by a big Limit order that showed up at the support (= big buyer showed up at our support). Then I showed two good places for placing Take Profit . Both places were pla...

    Video summary I used Volume Profile to find a strong intraday resistance . The resistance was based on Volume Profile: Trend Setup I published this trading level (a couple of days in advance) in my Trading Course members’ area. When the price made it to this resistance I opened Order Flow . On Order Flow , I was looking for some sort of confirmation . This confirmation would tell me (confirm) that sellers showed up around the resistance. This would make the trade much more likely to end up as a winner. I found the confirmation, which in this case was a divergence between price and delta. This meant that even though the price was rising, Cumulative Delta was falling ( =sellers entering the market ). I entered the short trade from the resistance I published before. I took a 14 pip Take Profit which I based on Volumes . I placed it one pip before a strong volume...

Today, I am going to do a day trading analysis of the  AUD/CHF.  What I like about this pair is that there is a clear and  strong uptrend  (starting from 26th August). When there is an uptrend like this, I like to  look for areas where heavy volumes were traded.  I do this with my  Flexible Volume Profile . The most recent  heavy volume area got formed yesterday . There was a rotation in the Asian session, and in the European session. In this rotation, heavy volumes got traded. After this rotation, there was an aggressive buying activity  that drove the price upwards again (I call this the  Volume Accumulation Setup ) This is another  sign of strong buyers  dominating the market here. Because of this new buying activity, I believe that those heavy volumes which got traded yesterday were mostly  buyers adding to their long positions. When the price makes it back (a pullback) into this area agai...