AUD/CHF: Volume Profile and Price Action Analysis

Hello guys,

in today’s day trading analysis I will have a closer look at the AUD/CHF.

This is actually my second one (on AUD/CHF) this week. I have already made an analysis of the AUD/CHF on Monday. Here is the Prediction & Result:

You can check out the original analysis here:

Volume Profile Trading Ideas: Trading The Weekly Point Of Control

AUD/CHF: Volume Profile Analysis

Since the nice reaction to our Support from Monday, the AUD/CHF has been in a steep uptrend.

Trends like this often give nice trading opportunities.

When I see such a trend I always use my Flexible Volume Profile indicator to look how volumes were distributed within the trend.

What I look for are significant volume zones = Volume Clusters.

As you can see in the below, there is a strong Volume Cluster around 0.6869.

Such a place represents a strong Support.

AUD/CHF; 30 Minute chart:

What it tells us is that the strong institutional Buyers who were pushing and manipulating the price upwards were adding to their Longs there. The heavy volumes we see, that’s them.

This is an important information because when the price makes a pullback into this heavy volume area again, then it is likely that those Buyers will become active here again.

What does it mean “become active”? it means that they will want to enter more Longs there, defend this zone, and finally push the price upwards again.

This is what should make this area a strong Support.

This Volume Profile setup is called the “Trend Setup” and you can learn all there is about it in my Volume Profile Trading Course.

Do you want ME to help YOU with your trading?

Join one of my Volume Profile Educational courses and get my private trading levels, 15 hours of video content, my custom made Volume Profile indicators, and more!

AUD/CHF: Price Action Analysis

Apart from the Volume Profile setup, there is also a Price Action Setup pointing to the same Support at 0.6869.

This Price Action setup says that a breached Resistance becomes a Support.

As you can see in the picture below, our Support worked as a strong Resistance in the past. The price bounced off it three times.

Yesterday, the Resistance got breached and it became a Support.

This Support is especially strong because there is a double confirmation: The Price Action setup points to the same Support as the Volume Profile setup.

AUD/CHF; 30 Minute chart:

I hope you guys liked my analysis! Let me know what you think in the comments below!

Happy trading,

-Dale

7 Comments

  1. richard poplawski

    hi. In the example above there is a strong trend with volume clusters indicating further accumulation. Why don’t the professional money close their positions at the top and book profits instead of keeping their long positions all the way down to the support area where they will likely defend their long positions. They like everybody else could buy new long positions at that point and not risk the support area being breached by a sudden spike downwards. I am reading your book and this has puzzled me from the beginning.
    Regards

  2. Hasan

    Hi dear
    I would like to ask about your indicator if it’s possible to have it in TradingView?

    Also to have Order-flow indicator

    Please let me know

Leave a Reply

Your email address will not be published. Required fields are marked *