CHF/JPY: Volume Accumulation Trading Setup

In my latest market analysis, I talked about an intraday resistance on CHF/JPY. There was a nice reaction to it on Friday. First, there was a quick +16 pip reaction, and then on the market open, the reaction continued and made +26 pips.

Still, it is always safest to close all your intraday positions before the weekend. There could be an opening gap which could cause your account a lot of harm if the market went the wrong way. So, in this case, it would be just best to close your position in green numbers before the market closed.

If you missed this level prediction and analyiss, you can read about it here:

CHF/JPY: Volume Profile analysis and prediction

You can see the reaction to the 114.06 resistance below:

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CHF/JPY – Volume Profile analysis

In today’s analysis, I will also comment on the CHF/JPY as there is another nice trading opportunity.

What I want to talk about is a newly formed support around 113.45.

On Friday, there was a rotation formed around the 113.45 area. If you use Volume Profile you can see that there were heavy volumes traded there, and most of them at 113.45.

From this place, a strong buying activity started. This means that there were buyers entering their long positions in that rotation. Then those buyers started aggressive buying and with Market orders pushed the price into a new uptrend.

When the price returns back to this area again in the future, then it is pretty likely that those buyers will become active again and they will try to push the price upwards from this support again.

Below is a CHF/JPY, 30 Minute chart with the highlighted 113.45 support:

Learn Volume Accumulation setup HERE

The setup I used in Friday’s analysis and also in today’s analysis is called the Volume Accumulation setup, and you can learn more about it for example in my Volume Profile Book which you can download for FREE by clicking the banner below.

Happy trading,

-Dale

Happy trading!

-Dale

New trading opportunities on AUD related pairs

There was significant macro news concerning the AUD released on Tuesday. It was the AUD Cash Rate and RBA Rate Statement. This macro affected all the AUD related forex pairs.

Today, I would like to show you the AUD/JPY. In here, the macro completely changed the overall trend!

A change in sentiment

There was a downtrend and now the price has made a sharp rejection of lower prices. Aggressive buyers are currently pushing the price upwards.

You can see this nicely on a Daily AUD/JPY chart:

If you switch from Daily time frame to 30 Minute time frame, then you can start looking for some intraday buying opportunities, to participate in the current buying activity.

Best way to do so, is to use the Flexible Volume Profile to identify significant heavy volume areas.

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The picture below shows what the Volume Profile in this area looks like.

It reveals two heavy volume zones. First is around 73.74, and the second is around 72.72

Support around 72.72

What happened here is that buyers were accumulating their buying positions in the lower area (around 72.72).

Then there was the macro news and those buyers started buying again, but this time much more aggressively.

This started to drive the price upwards.

When the price makes it back to this area sometime in the future (this can take a while but we can wait), then I expect those buyers will become active again, and they will try and push the price upwards again. At least temporarily.

This could create a nice buying opportunity.

Support around 73.74

The other significant volume area the Flexible Volume Profile shows is a Volume Cluster, created around 73.74.

This one was created by buyers who were adding to their buying positions.

As you can see, the price stopped for a while to rotate. This Volume Cluster was created within a rotation.

The buyers used the rotation to add some more to their buying positions. When they did so, they started pushing the price upwards again. This is the buying activity we see right now.

What I expect to happen is this: When the price makes a pullback to this Volume Cluster again, those buyers who were adding to their buying positions there (around 73.74) will try and push the price upwards again. They will do so, because they will try to defend their long positions.

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How the sellers will react

Also, sellers will be cautious when those two heavy volume areas get hit again. The reason is that they will know there were aggressive buyers there. They won’t care too much to risk a potential fight with them.

So, it is likely that sellers will get rid of their short positions when the price re-visits those areas again.

How does a seller get rid of a short position? He buys!

This helps the buyers push the price upwards again.

More opportunities

There are currently more trading opportunities like this on some other AUD related forex pairs. All thanks to the RBA macro news.

They are not too hard to find (well, you need to have Volume Profile, otherwise they ARE hard to find). So maybe you could give it a try and find some more yourself!

P.S. The setups I used today are described more in detail in this FREE Volume Profile webinar:

Volume Profile setups webinar

Happy trading!

-Dale

Trading The Volume Accumulation Setup – Weekly Trading Ideas – 3.2.2020

*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

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