NZD/CAD – Volume Profile & Order Flow Analysis

Today, I would like to have a closer look at NZD/CAD. What caught my eye here was a strong sell-off that occurred last week (13th May).

Such a strong sell-off is a sign of aggressive sellers jumping in and pushing the price downwards.

In this case, it is pretty easy to spot where those sellers were accumulating their selling positions before they started the aggressive sell-off.

Price Action

Price Action shows that there was a rotation before the sell-off started. Such a rotation is an ideal place for position accumulation.

The reason is that in a rotation those sellers could easily hide their intentions (of starting a sell-off) and slowly, unnoticed accumulated their short positions.

Volume Profile

If you look at the Weekly Volume Profile (on the left) then you can see massive volumes accumulated exactly in that rotation area.

In fact, the heaviest volumes throughout the whole week got accumulated there! (= Weekly Point Of Control).

After those volumes got accumulated → BOOM! A sell-off! It is this sell-off where the sellers were making money.

Now the price is slowly retracing back into this area (to test the Weekly POC at 0.8548).

I think that it will work as a strong resistance and that those sellers will want to defend their short positions.

It is likely, that they will start selling again and try and push the price downwards again.

Below is a 60 Minute chart of NZD/CAD with Weekly Volume Profiles:

Order Flow

We can also identify those sellers using Order Flow!

I zoomed into the rotation area which was formed before the sell-off started to show you how it looked like in there.

The thing which I think is the most important here is the High Volume Nodes. They are easy to identify (at last with my software) because they are printed in darker shades and put into a frame.

There are two especially strong ones, and the strongest one (1440) was formed just before the sell-off started.

Those were without any doubt strong sellers getting ready!

That’s a nice confirmation of the resistance we initially found using the Volume Profile! We can actually see the big guys getting ready here! Cool, right?

You know, I am really proud that we were able to make the Order Flow like this. I don’t think there is any other Order Flow software able to read Forex this way!

Below is NZD/CAD Order Flow. The footprints show 30 Minute candles and the volumes traded in them:

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

Happy trading!

-Dale

PS. You can now get my new ORDER FLOW PACK (including Order Flow software, Order Flow Video Course, and Volume Profile Pack) here: ORDER FLOW PACK

How to Use Order Flow on Forex

Today, I will do an intraday analysis of CHF/JPY. It will be a bit different this time because I will also use Order Flow.

Let’s first talk about what the Price Action and Volume Profile show.

There has been a strong downtrend since the beginning of this week. There haven’t been any major pullbacks and the price has been heading downwards steadily.

Volume Profile analysis

When there is a trend like this I like to use my Volume Profile to look in that trend area. What I look for are significant Volume Clusters (areas where heavy volumes were traded).

The reason CHF/JPY caught my eye today was because there are THREE Volume Clusters! Three very nicely visible and easy to identify heavy volume areas.

I believe that the volumes we see in those three areas were aggressive sellers, who were adding to their selling positions.

After each volume accumulation, those sellers pushed the price aggressively downwards – to make money on those positions they have entered in the Volume Cluster areas.

Those Volume Clusters now represent significant resistance zones. If there is no change in the market sentiment those zones should hold and reverse the price (when there is a pullback).

Logic behind Volume Clusters

The logic behind this is that the sellers who have entered their short positions in those Volume Clusters will want to defend their shorts. And if there is a pullback, then those guys are most likely to start selling and pushing the price downwards again. That’s why I think those three areas will work as resistances.

You can see all that in the screenshot below. It shows 30 Minute chart of CHF/JPY along with those three resistances:

Order Flow

The Order Flow software is usually used with Futures. However, my software has some special features which allows you to use it on Forex too! The functions are limited because Forex is decentralized but still it is pretty helpful!

I used the Order Flow to look into detail how the 109.51 resistance area looks like – how exactly the volumes were distributed there.

Heavy volume nodes (HVN)

The most important thing to notice is how the heavy volume nodes were distributed (HVN = those numbers in black rectangles showing where the heaviest volumes were traded in the given footprint).

What I want to see is heavy volume nodes created very close to each other – in one price level area. In the picture below, you can see that many of them were created around the 109.51 area.

This gives me another confirmation that the sellers were interested especially in this area. It also helps me identify the best place for a short trade.

In this case, it would be exactly 109.51 because this is where two heavy volume nodes were next to each other. To me this is the most important level which I was able to pin-point with Order Flow.

This is an effective way how you can use Order Flow on Forex to look into detail how support and resistance areas were formed.

If you see heavy volume nodes very close to one price level, then this makes the support/resistance stronger. It confirms it. It also makes your trade entry more precise (you want to enter your trade at the price level where heavy volume nodes were created).

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

Stay safe and happy trading!

-Dale

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!

CAD/JPY: Volume Profile Analysis

Price Action Analysis

Today, I will do an intraday analysis of CAD/JPY.

What caught my eye when I went through the charts in the morning, was that there was a rotation from which strong buying activity started.

This usually means that there were buyers entering their long positions in that rotation. After they have entered their longs, they started aggressive buying to push the price upwards – to make money on the longs which they placed in the rotation.

I am always interested when I see Price Action like this.

*I call this a Volume Accumulation setup and you can learn more about it here: Volume Profile Setups

Volume Profile Analysis

My next step was that I used my Flexible Volume Profile to look at how the volumes were distributed yesterday.

The heaviest volumes were in the rotation area, and the heaviest volume peak (where most of the trades got placed) was around 76.38.

This is where the buyers placed most of their longs. This is a support they will want to defend.

So, if the price makes a pullback to this area I think that those buyers will be defending their longs and they will start aggressive buying again to push the price upwards again.

Weekly POC

A nice addition to all that is that this support is also a Weekly POC (Point Of Control). This means that the heaviest volumes were traded at this price level this week!

You can see that on a 60 Minute chart with a Weekly Volume Profile below:

Volume Cluster at 76.56

As the price was moving upwards, more buyers were jumping in to make money on that up-move.

Most of them jumped in around 76.56. You can see that on the Flexible Volume Profile – there is a significant volume cluster around the 76.56 area.

When the price makes it back to this area again, it is pretty likely that those buyers will want to defend their longs which they placed in that Volume Cluster (76.56 area).

In order to do that they will need to start buying again – aggressive buying! This should drive the price upwards again and this is what makes this level a strong support.

Resistance → Support

There is also one nice confluence to the Volume Cluster. If you look at the picture above, you can see that the 76.56 level also worked as a resistance in the past. The price got rejected there aggressively.

The price went through this resistance yesterday, and it turned into a support. This is an old but pretty effective Price Action setup which I really like to see in a combination with the Volume Cluster – like in this case.

You can learn more about this setup here:

Resistance → Support (Price Action Setup)

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

Stay safe and happy trading!

-Dale

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!

How To Trade In A Trend With Volume Profile – Weekly Trading Ideas 27.4.2020

*Disclaimer: Presented opinions, trades and trading ideas on the markets and charts is not advice nor a trading recommendation. It is general information and it is for educational purposes only.

If you would like to learn to trade with Volume Profile and to trade with me every day, then join my Trading Course!

                                    Click the button below to get more information:

AUD/NZD: VWAP and Volume Profile Analysis

Yesterday, I wrote an article about VWAP trading setups. I showed you how to use VWAP when there is a rotation and also how to use it in a trend.

If you missed it then you can read the article here:

VWAP Trading Setups

Today, I will do an intraday analysis of the AUD/NZD and I will use VWAP and Volume Profile just the way I showed you in the article yesterday.

Identify the Trend

The first thing to do is to identify whether there is a rotation or a trend. In this case it is pretty simple. The 1st VWAP deviation (Weekly VWAP) is moving upwards. This means that the price and volumes are shifting upwards and that there is an uptrend.

In this case you could also tell by just looking at the price action without using the VWAP. Sometimes it is not so clear as here though…

VWAP Trend Setup

When there is a trend you want to see the price moving above the 1st Deviation and make pullbacks to it. Then you want to trade longs from those pullbacks.

If you look at the picture below, you can see that the 1st Deviation is trending nicely and that the price is moving above it. When the price hits the 1st Deviation, then chances are there will be a buying reaction!

Another thing to notice here is that the 1st Deviation from the previous week ended very close to the area of the current 1st Deviation. This adds strength to the support.

You can also notice a significant volume area around this support on the Weekly Volume Profile. I will talk bit more about it later.

Below is a 60 Minute chart of AUD/NZD, with Weekly VWAP and Weekly Volume Profile:

Volume Profile analysis

Let’s now have a look some more into the volume distribution in this trend area.

I used my Flexible Volume Profile to the whole trend area to identify places where significant volumes were traded.

There are two significant volume areas visible. The first one (around 1.0580) corresponds with the support from the VWAP Trend setup (the picture above).

As the price was moving upwards, buyers were adding to their long positions in those heavy volume areas.

It is likely that when there is a pullback into those heavy volume areas, buyers will want to defend their longs and they will try to push the price upwards from those areas again.

Below is 30 Minute chart of AUD/NZD with Flexible Volume Profile:

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!

What I like about all this the most is the confluence. 1st VWAP Deviation points us to a trading level and Volumes point us to the same place too!

This is how I like to use VWAP and the Deviations – as a combo with the Volume Profile. That’s where the VWAP strategies shine the most!

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

Stay safe and happy trading!

-Dale

Trading The Weekly POC – Weekly Trading Ideas 20.4.2020

*Disclaimer: Presented opinions, trades and trading ideas on the markets and charts is not advice nor a trading recommendation. It is general information and it is for educational purposes only.

**You can learn more about my trading setups in my new book:

If you would like to learn to trade with Volume Profile and to trade with me every day, then join my Trading Course!

                                    Click the button below to get more information:

EUR/CAD: How To Combine Volume Profile and VWAP

In my yesterday’s Weekly Trading Ideas video I was talking about a strong resistance on EUR/CAD. The price has already reacted to this resistance and those who took this trade had a nice profit.

What I want to show you now is how you could have used VWAP ho get the best out of this trade.

The first thing to notice is the 1st deviation of Weekly VWAP. That’s the grey line. In this case it represents a good resistance (this is based on a trading setup I talked about in this VWAP webinar: VWAP Trading Strategies).

Combined with heavy volumes I talked about yesterday (marked in red) it made a nice confluence of two strong resistances (volumes + VWAP deviation).

Another thing I talked about in my VWAP webinar was that a good place for a Take Profit was very often the VWAP line (yellow line).

Check it out in the picture below:

New Support on EUR/CAD

Now, I would like to continue with the EUR/CAD analysis and talk about a newly formed intraday support.

If you look at what the Volume Profile showed yesterday, then you can see that there was a “double distribution” shape (looks like a capital letter B).

This means that heavy volumes were accumulated at the low of the day, and then the price went upwards. Then there were heavy volumes accumulated at the end of the day (high of the day).

This tells me that strong buyers were building up their buying positions, then they moved the price upwards and then there was a new balance (new fair value area).

What happens when the price makes it back to the heavy volume area at the bottom of all this? Those buyers who entered their positions there will most likely start defending those positions. They will start entering aggressive market buy orders. With those they will try to move the price upwards again.

That’s why I think the 1.5181 area will work as a support.

Below is a 30 minute chart of EUR/CAD:

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!

VWAP confirmation

A nice confirmation to this 1.5181 support is the 1st Deviation (of the Weekly VWAP). That’s the grey line. If it stays somewhere in the 1.5181…

If it stays there then it will meet with the heavy volumes and it will create a nice confluence to the volume-based support I showed you!

That’s how I like to combine Volume Profile and VWAP!

Below is EUR/CAD, 60 Minute chart, Weekly Volume Profile and Weekly VWAP indicator:

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

Happy trading!

-Dale

Recommended Forex Broker

Having a solid broker with low spreads and commissions is ESSENTIAL for PROFITABLE TRADING! Check out my recommended brokers

AUD/CAD: Volume Profile Analysis

Today I will look into an intraday trade analysis of the AUD/CAD. There was a strong buying activity all across the AUD related pairs yesterday and it created some nice trading opportunities.

Volume Accumulation

What I always like to see is a price rotation which is followed by a trend. I call this the Volume Accumulation Setup.

First, volumes get accumulated in the rotation and then the big guys push the price into the trend to make money.

Why do volumes get accumulated in a rotation? Because the big guys can hide there. They don’t want to show their intentions. They want to enter their positions slowly and unnoticed.

Instead of entering for example 1.000 lot position, they do it like this: 1+1+1+1+1+1+1… Even if they do this super fast entering such a big position this way takes time. Why do they do it like this? Because this way they can hide their intentions! They don’t want to send a message which would say that “a big guy has just entered a trade”.

AUD/CAD Volume Accumulation

In today’s example, there was a rotation on AUD/CAD. Heavy volumes got accumulated in this rotation.

The big guys entered their longs unnoticed in the rotation and then they started the uptrend.

What happens when the price makes it back to this volume accumulation area? Those big guys will most likely try and defend their long positions. In order to do that they will start aggressive buying to push the price upwards again.

This is what will make this area around 0.8618 a strong support.

Below is the AUD/CAD; 30 Minute chart:

Weekly POC

There is one more confirmation to this support level. It is the Point Of Control of this week. This means that the heaviest volumes throughout this whole week got traded at this level (0.8618).

The Weekly POC is always an important thing to watch because every institutional trader who trades using volume indicators (most of them) know where the POC is.

In my opinion, the POC is the most important information the Volume Profile indicator gives you.

Below is a 60 Minute chart of AUD/CAD and with Weekly Volume Profile:

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

Stay safe and happy trading!

-Dale

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!

A Strong Support On Oil

On Friday, I wrote an article on long-term investment in Oil. I talked about the prices dropping crazy low and making Oil very attractive for a long-term investment. If you missed the article you can read it here:

Oil Price Can’t Drop to $0. How To Profit On That?

Today, I am going to look more into intraday Oil analysis. You know, even an intraday trade could prove a good starting point for a swing (or long-term) trade. So, if you are looking for an ideal price to jump in a long-term long on Oil, then this analysis could prove helpful.

Buying activity on Oil

The first significant buying activity on Oil occurred a few days ago (2nd April) when Donald Trump made a statement that he made an agreement with Saudi Arabia (Oil gained around 25% immediately).

I  believe that this could be the start of a new uptrend. For this reason, I am looking for significant volume clusters created within the newly formed trend.

What I did was that I used my Flexible Volume Profile on the most significant trend day – the day of the announcement (2nd April). It revealed a nice volume cluster (around 22.20) that occurred before the news came out.

Now, do you think that the big guys who move and manipulate the markets did not know beforehand about this announcement? I am not really sure. I guess that they knew and I think they were jumping into longs in this volume cluster area.

What will happen when the price makes it back to this volume cluster again? I think that it is pretty likely that those big guys will try to defend their longs. They will try and push the price upwards again. That’s why I think it will work as a support.

30 Minute Oil chart below:

Another confirmation

There is also one more confirmation here. If you look at the picture below, then you can see that the price reacted quite nicely to this 22.20 area in the past. It worked as a resistance.

It was not exactly the 22.20 level, but it does not matter. The important thing is that it was somewhere in this area.

When the price went past the resistance it then became a support.

So, we have a Trend Setup based on the volume cluster and a resistance becoming a support setup.

60 Minute Oil chart below:

OPEC meeting tomorrow

There is an OPEC meeting scheduled on Thursday (tomorrow). This could really make the Oil prices very volatile. You should be very careful trading the Oil at that time tomorrow. My advice would be to avoid trading it. At least avoid doing intraday trades on Oil. The situation on Oil is now very tense.

NZD/USD resistance

Did you watch the Weekly Trading Ideas video I published on Monday? I was talking about a resistance on NZD/USD. You can see the prediction (screenshot from the video) and the result below.

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!

If you look closely, then you can notice that the price actually missed the exact level I talked about. It missed it by just 1.5 pip and then there was this really nice sell-off.

You know support and resistances are not exact levels. They are “ZONES”. The price should react somewhere in that zone. It does not need to react exactly at the heaviest volume peak. Like in this case – the absolute volume peak was 1.5 pip higher and the price just did not make it that high and the sell-off started sooner.

This happens sometimes and there is no way how to avoid this with Price Action or Volume profile. BUT there is a tool which actually helps avoid such situations! It is called Order Flow and right now I am developing my own Order Flow software and I cannot wait to present it to you!

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

Stay safe and happy trading!

-Dale

AUD/CHF: Intraday Trading Opportunities

Today’s buying on the AUD created some nice trading opportunities on the AUD related pairs. Like for example on the AUD/CHF which I am going to analyze in this article. I am going to focus on an intraday analysis using 30 Minute and 60 Minute charts.

When there is a trend like now, I always use my Flexible Volume Profile indicator to look into the trend. What I am interested in most are places where heavy volumes got traded. I call those places “volume clusters“.

Volume Clusters

Volume clusters are a sign that buyers or sellers were adding or building up their trading positions. If there is an uptrend like in this case, then it was buyers who were adding to their long positions. They wanted to make most of the uptrend.

When the price makes it back to those volume clusters then it is likely that they will work as support zones. Why? Because those buyers who accumulated their longs in the volume clusters will want to defend those areas.

Below is a 30 Minute chart of the AUD/CHF where you can see two significant volume clusters. Both make a nice volume-based supports. The first is at 0.5976 and the second is at 0.5956. When the price makes a pullback to them then the buyers should step in and push the price upwards again.

Resistance becoming a Support

There is also a very nice confluence which I always like to see with this Trend setup. The confluence is at the 1st support (0.5976).

The picture below shows the same chart, now with 60 Minute time frame. As you can see, there was a really strong rejection of this price level in the past. The price reacted to this level aggressively and it is pretty obvious that this level worked as a strong resistance.

On Monday the price reacted to this level again. Not so strongly this time but the reaction was there.

Today the price went past this twice tested resistance. When it did the resistance became a support. This is quite old but working price action setup and you can learn some more about it in here:

Resistance turns into Support (and vice versa)

What I like about this is that this setup points me to the same level as the 1st volume cluster (0.5976). That’s a nice confluence I am always happy to see and trade.

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!

Yesterday’s trades

Did you watch yesterday’s Weekly Trading Ideas Video I posted here? Two levels I was talking about got already hit.

The first one was on the NZD/CAD. Below is the prediction from the video and the result:

The second level that got already hit was on the CHF/JPY. The reaction to it was not as nice as on the previous pair but still if you took the trade for example with 20 pip TP and 20 pip SL then it would turn out a nice winner.

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

Stay safe and happy trading!

-Dale

Recommended Forex Broker

Having a solid broker with low spreads and commissions is ESSENTIAL for PROFITABLE TRADING! Check out my recommended brokers

How to Track The Institutions With Volume Profile – Weekly Trading Ideas 6.4.2020

*Disclaimer: Presented opinions, trades and trading ideas on the markets and charts is not advice nor a trading recommendation. It is general information and it is for educational purposes only.

**You can learn more about my trading setups in my new book: VOLUME PROFILE: The insider’s guide to trading

If you would like to learn to trade with Volume Profile and to trade with me every day, then join my Trading Course!

                                    Click the button below to get more information:

CAD/JPY: Volume Profile Analysis

Let’s have a look at the CAD/JPY, intraday chart analysis today, okay? There was a nice rotation followed by a strong sell-off in the European session.

I used my Flexible Volume Profile to look inside the rotation and I found what I expected – heavy volumes accumulated there. So to me, it seems that sellers were accumulating their shorts in this area at the end of the US session and in the Asian session.

What they did next was that they started a sell-off. That’s how institutions work. They accumulate their positions without being noticed in a rotation and then they start a trend. It is the same thing over and over again. It is the trend where they are making money from the positions they accumulated in the rotation.

As you can see from the picture below, the price is slowly getting back into the rotation area again. To the area where the sellers entered their short positions.

CAD/JPY; 30 Minute chart:

What will happen when the price gets there?

Two factors to push the price down

1) The sellers will want to defend their shorts. They have two options – to fight or let their shorts run into red numbers. So, yeah – they will fight! They will try to push the price downwards again. They will do it by sell market orders (aggressive orders).

2) Another thing that will happen is that the buyers who are currently pushing the price upwards (pullback) will be afraid to fight the sellers. Those buyers are not stupid, they know about the sellers and their heavy volumes accumulated around 76.34. So instead of risking a fight, these buyers will back off. They will get rid of their longs. Where? At the resistance (which is the heavy volume area).

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!

What if buyers become aggressive?

What could also happen is that there could be some fundamental change in the market sentiment and that the buyers will actually want to fight with the sellers no matter what. They would start aggressively pushing the price upwards by market buy orders and if they are strong enough they push through. This would mean the resistance would get broken.

In a case like this it is best to use a Reversal trade strategy (enter a Long). More about this strategy here:

The Complete Guide To Reversal Trades With Volume Profile

Weekly POC

Let’s now get back to the chart because there are two more things I wanted to show you there. The first thing is a Weekly Point Of Control. This POC is very close to the resistance we found (76.34). It tells us that there were massive volumes accumulated throughout this whole week there. This adds to the strength of the resistance level.

Pin bar

The second thing is just a little confirmation, but still it is worth noticing. It is the pin bar created within the rotation area. This pin bar shows the aggressivity of the sellers who rejected higher prices (when the price was rotating and sellers were accumulating shorts)

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

Stay safe and happy trading!

-Dale

Recommended Forex Broker

Having a solid broker with low spreads and commissions is ESSENTIAL for PROFITABLE TRADING! Check out my recommended brokers

EUR/GBP: Intraday Analysis With Volume Profile and VWAP

Today, I will focus on the intraday analysis of the EUR/GBP. What caught my eye here was a rotation from which a strong sell-off started yesterday.

Why it caught my eye? Because in a rotation, heavy volumes are usually traded (accumulated). Big trading institutions need a rotation to accumulate their big trading positions. They need time and liquidity. The rotation takes some time so that suits them. When a price rotates then it also means that the market found its fair price (fair value) – at least temporarily. And this means traders are willing to buy and sell there = there is liquidity.

When there is a sell-off after such a rotation, then it indicates that the big guys (institutions) were building up their positions in that rotation. They were doing so unnoticed and without their intentions being revealed. After that, they started manipulating the price aggressively (with market orders)  to start a trend.

Volume Profile analysis

When I see a rotation from which a trend starts, then I look into that rotation using my Flexible Volume Profile. I look for a place where the volumes were the heaviest because this is the place where the big guys placed most of their positions. This is an important place, because when the price makes a pullback into this area again, then it is likely that those big guys will start defending their positions.

How will they defend them? They will start to sell aggressively again to push the price downwards. And that’s what I want to see. That’s what I want to participate in!

So, what I do is that I wait for the pullback and then enter a short from the place where they accumulated most of their positions. In this case, it is 0.8933. This is currently the strong intraday resistance on EUR/GBP.

You can see it in the picture below.

EUR/GBP; 30 Minute chart:

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!

VWAP analysis

There is one more thing I like about this 0.8933 resistance. The thing is a VWAP Trend Setup. With this setup you want to see the 1st VWAP deviations go sideways and you use them as support and resistance zones.

As you can see from the picture below, the 1st Deviation (the upper grey line) is moving sideways and it is currently exactly at the 0.8933 resistance. If it stays somewhere around this area then it will be a very nice confirmation of the volume-based level.

In the picture below I am using the Weekly VWAP. I find its signals stronger then the Daily VWAP. I like trading with the Weekly VWAP more then with the Daily.

BTW you can learn more about my VWAP setups in this webinar recording:

VWAP webinar – RECORDING

EUR/GBP; 60 Minute chart, Weekly VWAP:

EUR/JPY Prediction→Result

Did you watch my recent Weekly Trading ideas video? I made a prediction on EUR/JPY there. This prediction was based on the same setup as I showed you today (I call it the Volume Accumulation Setup). I was talking about a strong support at 118.26.

Upper picture is the prediction and the lower is a screenshot of the result. Nice and precise 60 pip reaction!

You can watch the whole video here:

Weekly Trading ideas – 30.3.2020

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

Stay safe and happy trading!

-Dale

Recommended Forex Broker

Having a solid broker with low spreads and commissions is ESSENTIAL for PROFITABLE TRADING! Check out my recommended brokers

How to do an Intraday VWAP Analysis

In my recent VWAP webinar, I showed you two trading setups you can use with the VWAP indicator. One setup which you can use when there is a rotation and the other setup when there is a trend.

BTW. if you missed the webinar you can watch it here:

VWAP Trading Strategies – Webinar

Today, I would like to show you how you can apply those setups in your trading.

I will demonstrate this on a 60 Minute AUD/JPY chart. I will use a Weekly VWAP – which means that every new week a new VWAP gets calculated anew.

Trend vs. Rotation

The first thing you need to do is to identify whether there is a trend or a rotation. Why? Because in the trend you will want to use the “Trend VWAP  setup” and in rotation the “Rotation VWAP setup”.

As I said at the webinar – it is best to use VWAP deviations to identify a trend from a rotation. When deviation (the grey line) moves vertically, then there is a trend. When it moves horizontally, then there is a rotation.

In the picture below, I divided the chart into four sectors.

In the first one, the 1st deviation (grey line) moves downwards – so there is a trend and we want to trade the “Trend VWAP setup

In the second section, the 1st deviation moves horizontally. This means there is a rotation and we want to look for the “Rotation VWAP setup“.

The third section shows a trend again, so we want to look only for the “Trend VWAP setup“.

The most recent section shows a rotation, so now I am looking for the “Rotation VWAP setup”.

The Special Webinar -50% Sale ends this Friday 27th. You can get it here:

Elite Pack -50%  SALE

Trade entries

The picture below shows the same chart. This time I indicated possible trade entries. Those trade entries are based on the two VWAP setups.

The first trade is a short and it is based on the “Trend VWAP setup”. Then the second trade is also a short but this time it is based on the “Rotation VWAP setup”. The same goes for the next four trades (all based on “Rotation VWAP setup”). Then the market goes into a trend again so the next trade is a long and it is based on the “Trend VWAP setup”.

The current rotation

Currently, there is a rotation and there are two areas where we could trade from – long and short.

What I like about the short is a confluence with Volume Profile indicator. If you use the Volume Profile to look into the recent selling area, then you can see that there is a “volume cluster“. This means heavy volumes got traded there. Quite possibly volumes of aggressive sellers who are currently pushing the price downwards. If the price makes it back to this area again, then those sellers could start selling aggressively again and defend their short positions. This would help to move the price downwards again.

This makes this area (around 66.30) an interesting place for a short trade. I marked it in the 60 Minute chart below:

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

Stay safe and happy trading!

-Dale

Recommended Forex Broker

Having a solid broker with low spreads and commissions is ESSENTIAL for PROFITABLE TRADING! Check out my recommended brokers

AUD/CHF: A Complete Intraday Chart Analysis

In my yesterday’s article, I showed you how I look for confluences of trading setups to identify strong supports and resistances. If you missed the article, then you can read it here:

EUR/CAD: Volume Profile + VWAP Daily Analysis

Because practice makes perfect, I will do a very similar analysis today. This time I will focus on AUD/CHF.

Volume Profile setup

The first thing that caught my eye here today, was a rotation and a strong buying activity starting from it. This is usually a sign of buyers who were building up their positions in the rotation, and who aggressively pushed the price upwards later.

I used my Flexible Volume Profile to look into the most recent area to see how the volumes were distributed there. I saw what I expected – heavy volumes accumulated around 0.5853.

Heavy volumes make this area a support. When the price makes a pullback into this area again, then the buyers who were building up their positions here should try and push the price upwards again. They will do so because they will want to defend their long positions.

Check it out on the picture below (AUD/CHF; 30 Minute TF):

The Special Webinar -50% Sale ends this Friday 27th. You can get it here:

Elite Pack -50%  SALE

Price Action setup

Apart from the setup I mentioned above, there is also a Price Action setup I like to trade. This setup says that a breached support becomes a resistance (and vice versa). I identify old supports and resistances by simply looking at the charts looking for significant swing points. Those were old supports/resistances.

If you look at the picture below, you can see that there were three such swing points very close to the 0.5853 level. I marked those swing points in blue. This shows that the price jumped off the same area three times in the past and therefore, I consider it a resistance. This resistance got broken and the price went past it today. This means that the former resistance has now become a support.

You can learn more about this setup here:

Price Action Strategy: Support Becoming Resistance

Below is a 60 Minute chart of AUD/CHF:

VWAP setup

Apart from the Volume setup and the Resistance → Support setup, there is also one more setup forming.

It is the VWAP Trend setup (the #2 setup I showed at my recent VWAP webinar).

If you look at the picture above, then you can see that the 1st VWAP deviation is moving upwards (I am using the Weekly VWAP). This tells me that the volumes are shifting upwards and that there is an uptrend. In a situation like this the 1st deviation should work as a support. The deviation is being calculated in real time and if the price comes back to the 0.5853 area soon (for example today or tomorrow), then I think there is a good chance it will meet with the 1st Deviation – which could by that time make it to this level (I indicated it in the chart). This would make another nice confirmation.

As you can see, we have 2, possibly 3 trading setups which confirm each other. This is what I like to see and trade.

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

Stay safe and happy trading!

-Dale

Recommended Forex Broker

Having a solid broker with low spreads and commissions is ESSENTIAL for PROFITABLE TRADING! Check out my recommended brokers

EUR/CAD: Volume Profile + VWAP Daily Analysis

Today, I am going to do an intraday analysis of EUR/CAD. I will use Volume Profile, VWAP and Price Action to do that.

What I want to show you is how you can use all those together to find strong confluences. What do I mean by a confluence? A confluence means a place where more signals from different trading indicators meet and point to a strong trading level.

Volume Accumulation Setup

The first thing I am going to talk about is a 30 Minute chart (EUR/CAD). What immediately caught my eye was a rotation from which a strong buying activity started. This is what I call the Volume Accumulation setup.

*I talk more about it here:

Volume Profile webinar

What I did was that I used my Volume Profile tool to see how the volumes were distributed there. As you can see in the picture below, there were heavy volumes created in the rotation. From this rotation a buying activity (an uptrend) started.

This tells me that buyers were entering their longs slowly and unnoticed in that rotation. When they were done with the volume accumulation, they started pushing the price aggressively upwards.

What is the most important place for those buyers? It is the place where they placed most of their positions. This is where the Volume Profile is the thickest – at 1.5462. This is a strong level they will most likely defend in the future (support).

Daily VWAP

Below, you can see the same 30 minute EUR/CAD chart. This time I will focus on the VWAP. In this chart I am using a Daily VWAP. This means that every new day this indicator gets calculated anew.

If you look closely, then you will see that the grey line from yesterday (1st deviation of VWAP) ended it’s calculation at 1.5462. This is exactly the same level as the Volume Profile pointed us to!

This makes it a nice confluence of two signals. Volume Profile + 1st VWAP deviation.

The Special Webinar -50% Sale ends this Friday 27th. You can get it here:

Elite Pack -50%  SALE

The big picture

There is more! Let’s now have a look at the 60 Minute chart of the same instrument. I use this chart to give me a bigger picture (overview) of the market. In this chart I use Weekly Volume Profile and Weekly VWAP. This means that every week a new Volume Profile will automatically get printed. Also a new VWAP will start it’s calculation every new week.

Since it is only Tuesday morning, I merged two Weekly Volume Profiles together (to get more data). The one from the previous week and the one from this week (this one was showing only volumes from yesterday and today).

What those two merged profiles showed me is a significant volume area at our level (1.5462). It is especially important to me because this  volume area is nicely visible from the weekly point of view (the bigger picture). It is in fact, the second strongest volume area in this whole period.

As a nice addition to this there is also the 1st deviation of the Weekly VWAP almost exactly at the level. Now, this deviation is till moving so we don’t know where it will be when the price makes it back to the 1.5462 support. But if the 1st deviation is close, then it will be another nice confluence to this level!

Price Action

A small bonus to all that is that there were also two very nice reactions to this level in the past. I highlighted those reactions in orange. Such reactions mean that this level worked as a support in the past – therefore, it was an important level. This adds one more little confluence to the whole picture.

EUR/CAD; 60 Minute chart:

Intraday trading workspace

Do you think it is too hard to track all this? It takes some experience but it is not that hard. Especially if you know what to look for. What helps is to have a nice (and clean) intraday workspace that shows you everything you need.

What you see below is my intraday trading workspace. It consists of three charts and it shows all the things I was talking about in this article. Everything on just one screen.

I am not saying it takes just a quick look and I immediately see strong trading levels. It takes some thinking to find them, but having a workspace like this makes things way easier!

Recommended Forex Broker

Having a solid broker with low spreads and commissions is ESSENTIAL for PROFITABLE TRADING! Check out my recommended brokers

Don’t risk too much!

One important thing to wrap this up. Don’t risk too much on one single trade. No matter how many confluences, no matter how strong the level appears. No trading strategy has 100% win rate and there is always a risk of taking a losing trade. Losing trades are part of this business.

You should be extra careful especially now when there is news coming up very often and the overall market volatility has risen dramatically.

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

Stay safe and happy trading!

-Dale

NZD/CAD: An Intraday Analysis from A to Z

Today, I am going to do a complete intraday analysis on NZD/CAD. I am going to show you the way I always do it from A to Z.

Rotation vs. Trend

The first thing I check is whether there is a trend or a rotation.

If there is a rotation then I am looking for both buying and selling opportunities (longs and shorts).

When there is a trend, then I am looking only for trades which are in line with the trend.

NZD/CAD is clearly in a downtrend, so I will be looking for short trades only.

NZD/CAD; 60 Minute chart:

Weekly Volume Profiles

After I decided whether I look for longs, shorts, or both I look into Weekly Volume Profiles.

Those should point me to the strongest intraday supports and resistances.

If an intraday support/resistance is clearly visible on the Weekly Volume Profile, then the chances of a successful reaction to it are higher.

Why? Because even those traders who trade bit higher time frames will be interested to trade these volume support/resistances. In other words – such trading levels attract more traders – for example, intraday traders using 15-minute charts as well as swing traders using 1-hour charts.

So, if a level is visible on the bigger picture, then chances of success are bigger.

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!

Weekly VWAP

The next thing I check is the Weekly VWAP and its Deviations. Actually, it is the Deviations that interest me the most.

Deviations have many functions. The first function is that they show whether there is a trend or a rotation. If there is a trend (like in this case) they point me to places where the price could make pullbacks.

In a downtrend, the price usually moves below 1st Deviation and reacts to it from below.

As you can see in the picture below, the price already made some reactions to it this week. If the price hits the 1st Deviation again, there could be another reaction.

NZD/CAD; 60 Minute chart:

Weekly Profile + VWAP confluence

If you look at the picture above, then you can see that there is a nice confluence of two trading signals.

The confluence is that the 1st Deviation is almost at the Weekly POC (the place where the heaviest volumes throughout this week were traded). I think that chances are that the 1st Deviation will actually get there in a couple of hours.

Such confluence marks a really nice resistance level.

In a case like this, I switch to a lower time frame to see where exactly the resistance is and what exactly happened in this area

Detailed Flexible Volume Profile analysis

Now I switch from 60 Minute to 30 Minute time frame.

There is a nice rotation with heavy volumes accumulated in this area.

I call this the Volume Accumulation Setup and you can learn more about it here:

Volume Accumulation Setup EXPLAINED

This tells me that there was a rotation in which sellers were building up their selling positions. Then they started selling again and pushed the price lower.

When there is a pullback into this area, chances are that those sellers will become active again and they will try to push the price downwards.

The heaviest volumes in this rotation were at 0.8397. This means that the sellers placed most of their positions there. For that reason this price level is the most important level for them.

Summary

In the end I came up with an intraday trading resistance at 0.8397.

Reasons:

1. Downtrend (I want shorts)

2. 1st Deviation of VWAP

3. Weekly POC

4. Intraday trading setup on 30 Minute chart

All those 4 points are in line with each other point to the 0.8397 resistance.

Does this mean it will surely work? Absolutely not!

In trading even the best resistance or support can fail. We as traders must accept that there is no way we can be right in 100% of the cases. In fact I consider an experienced pro trader whoever is able to maintain 60% win rate in the long run. If you manage that, then congratulations, you are a winner in this game!

Recommended Forex Broker

Having a solid broker with low spreads and commissions is ESSENTIAL for PROFITABLE TRADING! Check out my recommended brokers

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

I will be looking forward to see you on Monday with Weekly Trading Ideas Video!

Happy trading!

-Dale

GOLD – Intraday Trading Analysis With Volume Profile

The previous week I wrote about the importance of the big picture analysis. I did a long – term analysis on Gold using Weekly charts and Volume Profile.

You can read this analysis here:

GOLD – The Big Picture

Now, I would like to zoom in a bit and analyze Gold on a much lower time frame (30 Minute). This will point us to intraday supports/resistances which are currently there.

Price Action analysis

Let’s first start with simple Price Action. Currently, there is an uptrend on Gold. It looks like this:

When there is a trend development like this, then I like to use my Flexible Volume Profile on the trend area. My goal is to see significant Volume Clusters which got accumulated in the trend.

Volume Clusters

What does a Volume Cluster in a trend mean?

Volume Cluster is an area, with heavy volumes. You should be able to spot them easily with Volume Profile. They should be visible on first sight. Nice and clean, that’s what we are looking for.

When there is a Volume Cluster (or more of them) created in a trend, then it means that heavy volumes got traded there.

In this case, there is an uptrend. Volume Cluster in an uptrend means this:

Buyers are pushing the price upwards and there are places, where those buyers were adding massively to their buying positions (that’s where we see Volume Clusters). Then they drive the price even higher.

Below, you can see the same chart as I have already shown you, but this time with Flexible Volume Profile.

XAU/USD; 30 Minute time frame:

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!

GOLD: Intraday Supports

In the picture you can clearly see three significant Volume Clusters. Those were areas where buyers were entering most of their buying positions.

What will happen when the price turns and makes it back to those three areas?

Chances are, that those buyers who were building up their buying positions there will become active again. They will try and defend those areas (defend their positions), and they will try to push the price upwards from those areas.

This is why those three Volume Clusters should work as significant (intraday) supports.

Does it matter when the price makes the pullback to those levels?

Well, in my experience markets have really good memory. So it does not matter that much.

Those three Volume Clusters should be strong Supports even after few weeks after they got formed!

Recommended Forex Broker

Having a solid broker with low spreads and commissions is ESSENTIAL for PROFITABLE TRADING! Check out my recommended brokers

I hope you guys liked my intraday analysis.

Please let me know what you think in the comment section below!

Happy trading!

-Dale

Trading With Extremely High RRR (Risk Reward Ratio)

I would like to show you a trading method which combines intraday trading with swing trading.

It is a highly efficient method with an extremely high RRR (Risk Reward Ratio).

Strike rate is not that high, but the big RRR makes up for it.

I am going to show you the method now, but first a warning: you will need to have the guts for this as it requires you to hold intraday trades as if they were swing trades!

Feel like you have the guts for it? Good! Let’s have a look at it!

Intraday analysis

The core of this approach is finding a strong trading level, which makes sense both as an intraday trade as well as a swing trade.

As an example, I will use a trading level, which I published for members of my trading course.

This level was a short on EUR/USD. I published it as an intraday trading level at 1.1087.

The reasoning behind the level was this:

There was a heavy volume area created in a price rotation. Then the price went downwards from there aggressively. This gave me the indication, that there were strong sellers building up their selling positions there.

I marked this level and I waited until the price returned to this level again. My idea was that those sellers would become active again, defend their selling positions, and try to push the price downwards again.

I call this scenario the Volume Accumulation Setup. You can learn more about it for example in this free webinar:

WEBINAR: Volume Profile Setups

Below is the 30 Minute chart on EUR/USD with this intraday trading level.

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!

Swing trade analysis

Let’s now have a look at this level from a higher perspective using a 4 Hour chart

(*in NinjaTrader software you need to set your chart to 240 Minute chart to get the 4 Hour chart):

There are two very important things in the picture above.

The first one is the heavy volume area in the middle of the downtrend. You can notice that it points you exactly to the same level as the intraday trading analysis.

This does not happen that often, but more often than you would think.

Another cool thing to support this trading level is that it worked as a support in the past. The price bounced off this level really nicely (that’s how you tell it was a support).

When the price went past the support, it then became a resistance.

You can learn more about this setup here:

Support → Resistance Price Action Setup

 

Recommended Forex Broker

Having a solid broker with low spreads and commissions is ESSENTIAL for PROFITABLE TRADING! Check out my recommended brokers

Trade management

Now, we have a level which makes sense both as an intraday trade as well as a swing trade!

This gives us a nice opportunity to enter a swing trade using a very tight Stop Loss.

In a situation like this, you can use the Stop Loss as if you were trading a standard intraday trade. For forex pairs, this could be for example 10-15 pips.

What you do next is to open a standard intraday trade, but divide it in two halves.

You close the first half of the trade as is you were trading a standard intraday trade (for example after you made 10-15 pips profit).

Then comes the hard part!

You need to hold the second half of the position as if it were a swing trade!

This means your Take Profit could be for example 50-100 pips!

In this particular case, the ideal Take Profit would be 60 pips.

The reason for that is that there is a significant Volume Cluster standing in the way at 1.1028.

 

If you would like to learn more about placing your Take Profits using volumes (like in this example), then you can watch this free webinar:

Swing Trading Webinar

To sum it up – If you used TP=10 pips and 60 pips, and SL 10 pips, then you had 1st half of the position RRR = 1 and the 2nd half RRR = 6.

That is, if you had the guts to hold it!

I hope you like this trading method and I hope you will give it a try!

Happy trading!

-Dale