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Video Transcript:
Hello, guys! It’s Dale here, and in today’s video, I’d like to do a swing trading analysis of the Australian Dollar-Canadian Dollar pair. We won’t be looking at a standard 30-minute chart today, as that would be for intraday trading. Instead, we’ll be looking at a four-hour chart, which is a 240-minute chart. Each candle on this chart represents a four-hour period.
The trading idea I’d like to show you is a swing trading strategy. What caught my eye here was the strong buying activity, indicating a strong uptrend initiated by aggressive buyers. Now, the question is, where were these buyers building up their long positions? If you use the volume profile, you’ll see a massive volume zone right before the start of this strong buying activity. This indicates that the buyers who initiated this uptrend were building their long positions here. Therefore, this represents a very significant zone for those buyers.
This heavy volume zone begins at 92.38. When there is a pullback into this area, I think those buyers from this zone will want to defend it, and it should work as a support level. The price should react and bounce off that support. The volumes in this area are why I believe this will work as a strong support level. This setup, which I used here, is called the Volume Accumulation Setup, and it is one of my favorite volume profile setups. You can learn more about it in my Volume Profile book, which is available for free on my website, so check it out.
There is also one more thing I’d like to mention. This strong support is not only based on heavy volumes but also on a price action setup. Let me highlight this support zone again. Notice that the price has reacted strongly here in the past. Those three strong reactions indicate that this zone previously worked as a strong resistance. When the price passed the resistance, it turned into support, as strong resistances do when breached.
So, not only do we have the volume profile setup here, but we also have the price action setup. Both setups point to this zone, indicating it should work as strong support. Now, we just need to wait for the pullback and take it from there. Remember, this is a swing trading idea, so you need to let the trade breathe. Use a wider stop loss and a wider take profit. My recommendation would be to place the stop loss behind this heavy volume area and aim for a risk-reward ratio of at least 1:1 for the take profit.
That’s about it for the Australian Dollar-Canadian Dollar swing trading support. If you would like to learn more about trading with the Volume Profile and trade with me daily, I recommend visiting my website, This Is It Trader. The next step is to go to the Trading Course and Tools section. Scroll down a bit, and I recommend getting the Elite Pack. This educational pack will teach you everything about trading with the Volume Profile. There’s a video that shows everything included in the Elite Pack.
The Elite Pack includes a video course, my day trading and swing trading levels (which you’ll receive daily), Volume Profile indicators that I developed, and a couple of bonuses. Additionally, it includes free tech support for Elite Pack members. Our tech support team will set up the NinjaTrader 8 platform with all my indicators, load up my trading workspaces, and connect you to the data feed—all free of charge as part of the service we provide to Elite Pack members.
That’s all for this video. I hope you found it useful. I look forward to seeing you next time in another video or in our members’ area. Until then, happy trading!
