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Video Transcript:
Hello, everyone. It’s Dale here with a new day trading analysis. What you see before you is the Ninja Trader 8 platform with my custom-made volume profile and VWAP indicators. This is the NZD/USDย 30-minute chart, and I want to talk about the newly formed support at 0.6165. This support is based on a volume profile setup called the trend setup. I trade this setup when thereโs a trend like this one.
What I do is use the volume profile to look for significant volume zones within the trend, like this one. This is a volume bump that formed as the price was going upward in this uptrend, and it represents a place where buyers were active, adding to their long positions and pushing the price upward. If the price comes back to this level at some point in the future, it’s likely there will be a reaction, as the buyers from this area will want to defend the place where they placed many long positions and push the price upwards from there again.
I donโt want to trade this setup alone because I always want to see some confluence with other trading setups. In this case, the confluence is with a price action setup. If you look here, the price reacted very nicely to this level in the past, with a very sharp reaction here and also a reaction here in that general area. In the past, this was resistance, but when the price moved past the resistance, it turned into support. So, this is a price action setup that confirms the volume profile setup based on this volume cluster. The level is here at the beginning of that volume cluster, which is where I want to trade because, in my experience, it offers the best chance of a successful reaction.
For these reasons, I want to trade this setup. Now, we just need to wait for the price to come to this level. When the price touches that level, we can take it from there.
If you are interested in learning more about volume profile trading, head over to my website atย trader-dale.com. If you click this button, it will take you to a page where you can check out my volume profile trading education and tools. There’s also a combo pack that includes bothย volume profile and order flow tradingย education and tools. Check it out. There are videos you can watch that will show you everything that’s included.
Alright, so thatโs about it. Thanks for watching the video, and I look forward to seeing you next time. Until then, happy trading!
