EUR/USD: Volume Profile & Price Action Analysis

In my yesterday’s analysis, I talked about combining Volume Profile (the Trend Setup) with Price Action (Support→Resistance Setup) to create a powerful two setup combo.

If you missed it then you can read it here:

Volume Profile & Price Action Setup Combo

Today, I will show you a very similar example, because practice makes perfect.

This one is on my favorite trading instrument EUR/USD.

Volume Accumulation Setup

There was a very nice and tight price rotation yesterday. From that rotation, a strong buying activity started. This buying activity resulted in an aggressive 100 pip movement.

This strong up move indicates that there was some serious buying going on inside that rotation. Buyers were entering long positions there slowly and without being noticed.

After they had entered their longs, they started pushing the price upwards – which snowballed and resulted in a strong uptrend.

For me, the most important thing here is to know, where the buyers entered most of their longs.

I used my Flexible Volume Profile to look inside that rotation area. As you can see from the picture below, the heaviest volumes got accumulated at 1.1443.

When the price reaches this area again at some point in the future, I expect that the buyers from this area will become active again and that they will push the price upwards from there again. This is why I think the 1.1443 will work as strong support.

I call this the Volume Accumulation Setup and you can learn more about it for example in this recording of my webinar about trading with Volume Profile:

Volume Profile Webinar

EUR/USD, 30 Minute chart:

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Price Action

Apart from the volume-based setup, there is also the same setup I talked about in my yesterday’s article – the Resistance → Support setup (CLICK TO LEARN MORE)

As you can see from the picture below, the price reacted very nicely tho this 1.1443 area in the past. There were several reactions and every time the price bounced off this level. It worked as a strong resistance.

Now, when this resistance got breached, it became a support.

This is an old Price Action setup, and one of the few I like to use. I rarely trade it as a standalone setup but I really like to trade it when it is in confluence with Volume Profile, like in this case.

EUR/USD, 60 Minute chart:

I hope you guys liked today’s analysis. Let me know what you think in the comments below!

Happy trading,

-Dale

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3 Comments

  1. Fibo

    Hi I spotted that one too, but today theres a new HVA formed around 1.53310, how this affects the analysis? Where is now the POC?

    1. Trader Dale

      Hello, it does not affect the analysis in any way. The strong support stays and it is valid until it gets hit.

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