Trading The Weekly Point Of Control on NZD/JPY – Volume Profile Analysis

Hello guys,

today’s day trading analysis will be focused on trading Weekly Point Of Control (POC) on NZD/JPY.

Since the start of this week, the NZD/JPY was more or less just rotating. There were heavy volumes accumulated in that rotation.

You can see that nicely with my Volume Profile indicator.

When the volumes were accumulated it was very hard (almost impossible) to tell what was going on in that rotation. Was is Buyers getting ready for a big move? Or Sellers?

But now we know. There were strong institutional Buyers who were building up their Long positions slowly and unnoticed there.

Then those strong Buyers manipulated the price to go upwards. How?

By using aggressive Market Orders.

Those trading positions accumulated in the rotation were so huge, that this area also became the Weekly Point Of Control (POC). This means that the heaviest volumes in this week (so far) have been traded there. Exactly at 76.90.

NZD/JPY; 30 Minute chart:

Buyers Defending the Weekly POC

This weekly POC is now a very important area. The reason is that those strong institutional Buyers placed huge trading positions there.

When the price makes it back into this area again in the future, then it is very likely that those Buyers will want to defend it. This zone is very important for them – they placed huge amounts of volumes there. So they will fight and try to push the price upwards from there again.

This is why I think this zone will work as a strong day trading Support.

This Volume Profile setup is called the “Volume Accumulation Setup” and it is especially strong when a strong trending activity starts from the Weekly POC. Like in here.

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

Happy trading!

-Dale

P.S. If you are looking for a solid broker with tight spreads and low commissions then check out my two recommended brokers: Dale’s Recommended Brokers

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