NZD/CAD: Volume Profile Analysis

Hello guys,

today I would like to share with you my day trading analysis of NZD/CAD.

This pair caught my attention at the first sight because there was one of my favorite formations very nicely visible there.

The formation is a price channel/rotation followed by an aggressive and sharp trend. In this case, it is an uptrend.

Volume Profile Analysis

If you check the volume distribution in this rotation with Volume Profile, then you will see, that there were massive volumes traded there.

The heaviest volumes were at 0.9168. This is actually the Weekly Point OF Control (POC), which means that the heaviest volumes of this week (so far) have been traded there.

Since there is an uptrend commencing from the POC, we can surmise that in that heavy volume area, strong Buyers were building up their Long positions.

When the Buyers had entered their Longs there, they pushed the price aggressively upwards.

When the price makes it back into the heavy volume zone around 0.9168, those Buyers are likely to defend this zone. It is an important zone for them because they placed a lot of their Long orders there!

They will defend it with aggressive buying (using Market Orders) and this should drive the price upwards again.

And this is the reason I believe that this POC will work as a Support when the price hits it at some point in the future.

I call this setup the “Volume Accumulation Setup” and you can see it in the picture below.

NZD/CAD, 30 Minute chart below:

PREDICTIONS & RESULTS

There were some nice reactions to predictions I made public here on the site.

The first one is a prediction I posted here:

AUD/JPY: Volume Profile and VWAP Analysis

The Support I showed you was based on the “Volume Accumulation Setup“.

Here is the PREDICTION→RESULT:

Another nice reaction was on a “Trend Setup” on EUR/AUD which I talked about in the Weekly Trading Ideas video I published here on Monday:

How To Trade With Volume Profile – Weekly Trading Ideas 25th January 2021

Here is the PREDICTION→RESULT:

Did you trade those Supports guys? Let me know in the comments below!

If you would like to learn how to pick such Support/Resistances yourself, then the BEST way is to enroll in my training course!

Learn more by clicking the green banner below!

Happy trading!

-Dale

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4 Comments

  1. Tim

    Fantastic analysis on NZDCAD. Definitely interested in how the market will eventually unfold, and definitely betting long from 1. 9168 level. And yes, AUDJPY, EURAUD were beautiful winners that I took. And also NZDJPY on Monday. Thanks!

  2. Brent

    Dale,
    I join a week ago. Course is excellent. Paper trading the setups & watching carefully my entry’s with PT & SL. Making sure I understand the new platform before using real monies.
    Thanks

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