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Video Transcript:
Hello
everyone, it’s Dale here with new day trading analysis. Today, I’d like to talk
about USD/CAD. Just a heads up, there’s macro news concerning the
Canadian Dollar today—specifically, Canadian inflation data, which is
significant news that could cause severe volatility for the CAD. So, be careful
around the time when the news is released. Now, let me show you the trading
idea on the chart.
What
you see before you is a 30-minute time frame of USD/CAD, and the level I
wanted to talk about is right here, at 1.3761. If you look at the CAD
here, you can see there’s a strong uptrend. When there’s an uptrend like that,
I only look for long trades, such as this one. I do this using the Volume
Profile, and I like to use significant volume bumps to jump into the uptrend in
case there’s a pullback. You can look at this whole area, for example, like
this. It doesn’t really matter if you use the profile over the entire trend or
just part of it, because the heavy volume zone will stand out regardless of how
you use the profile.
This
is the heavy volume zone, and it’s basically telling us that as the buyers were
pushing the price upwards, they were adding to their long positions here. Then
they continued to push the price even higher. This heavy volume zone is important
for the buyers because they placed many long positions there. So, if there’s a
pullback, chances are that those buyers will become active again, pushing the
price up from there.
At
the top of this Volume Profile setup, you can also notice that this is the open
of the week, which is a nice addition that strengthens the level. Also, this
highlighted green zone is a Fair
Value Gap concept from Smart Money trading, and here is the beginning of
that Fair Value Gap. That’s the place from which I like to trade.
All
these factors tell me that this is a strong level to trade from. Now, I just
need to wait for a pullback and take it from there. However, there is one risky
aspect here. Let me zoom in a bit. I would prefer this low to be a rejection of
lower prices—like a normal rejection—not the open of the day, as seen here. The
day opened here, and the price went upwards, so this is kind of a weird
scenario, adding a bit of risk to the level. But aside from that, this is still
a strong level to trade from.
By
the way, there’s one more thing I forgot to mention. This level is actually a
weekly Point of Control from the previous week. If you look at this gray
profile, it shows the volume distribution for the entire previous week. The
volumes in the previous week, meaning in this area, were right here, at this
price level, which—as you can see—is at our support level here. So, that’s
another thing that adds strength to our level.
This
is how you can trade when there’s a trend. I can actually demonstrate this with
a trade I had earlier today on EUR/USD. It was more or less the same
scenario. Here, there’s a downtrend—by the way, this is a 30-minute chart.
There was a downtrend, and within that downtrend, I identified this heavy
volume zone here. Then, there was a pullback, and the price hit my level, which
was here where you can see the red line. By the way, this is a level I
published in my members’ area, and there was a beautiful reaction afterward.
This
is how the setup is supposed to look. If you’d like to join us and get these
levels on a daily basis, just visit my website, which is trader-dale.com. Here’s how it looks,
and if you click this button,
it will take you to a page where you can browse my trading education and
custom-made tools.
Right
now, I’m running a special Halloween
sale, which means you can get these tools at a huge discount. There’s the
Volume Profile Pack, focusing on Volume Profile trading, the Order Flow Pack,
focusing on day trading with Order Flow, and the VWAP Pack, focusing on trading
with VWAP. If you scroll down a bit, there’s a very special deal where you can
get all three packs together for only $597. That’s the special Halloween sale,
and the discount is available until the end of the month.
All
right, that’s about it. Thanks for watching the video, and I’ll look forward to
seeing you next time. Until then, happy trading!
Hi trader dale
Do you have a specific video on volume profile and can volume profile be used with supply and demand? Thanks I’m hoping to hear from you