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Video Transcript:
Hello everyone, it’s Dale here with new day trading analysis. Today I’d like to talk about the USD/JPY and a newly formed support which is here. This is a support which I already published in the members area of my trading course. It is at 161.405.
Let’s start with the volume profile setup. Let’s take a look at this 30-minute chart and this zone where the price was going upwards aggressively. If you look at the volume distribution here, you can notice this heavy volume note. This tells us that buyers were adding to their long positions here, pushing the price upwards. For this reason, because those buyers were active here, this heavy volume zone is important for them. So, if the price pulls back here, chances are that the buyers from this place will want to defend this heavy volume zone and push the price upwards from there again.
Now, there are two things here that made me decide on this heavy volume zone. As you can see, it doesn’t really stand out that strongly. The first thing is that the strong, aggressive movement started from this heavy volume zone, showing me the aggressiveness of the buyers. The second thing is actually the second setup; it is a price action setup. If you look here and here, the price was reacting to this level in the past. That means it was a resistance, right? It was a strong resistance in the past, and when the price blew past that resistance, it became a support. So that’s another thing that adds strength to this volume cluster. If it was only this volume cluster, I wouldn’t trade it, but because there is that combination of this price action setup, the strong buying activity commencing from this heavy volume zone, and that heavy volume zone, that’s why I picked this level and want to trade this.
Currently, the market volatility is not that high, and this is not really giving us too many trading signals, but this is quite typical for summer. Just be aware of that. One thing that does move the markets even in summer is macro news. If you look at the calendar, today we have news that Chair Powell testifies, and tomorrow we have inflation and unemployment claims. Especially the inflation news is very important and will definitely move the markets, creating increased volatility. Be careful around trading during the news. I personally won’t be trading in the macro news and post-macro news volatility. By the way, on Friday, there are also a couple
of macro news releases, but the strongest news this week is definitely the inflation report. Be careful about that.
Otherwise, I think that if the level gets hit, there is a solid chance of a nice reaction. Now, let me show you one more thing before I wrap up the video. If you go to my website, trader-dale.com, and go to the trading course and tools section, I am running a special Independence Day Sale. You can purchase my best educational and indicator packages, which are the Volume Profile Pack and the Order Flow Pack. There are videos which you can watch; the videos will show you everything that’s included in those packs. In short, the Volume Profile Pack will teach you everything about volume profile trading, and the Order Flow Pack will teach you everything about day trading with order flow. Both packs also include all the indicators that you are going to need, which are the volume profile and order flow indicators. If you want both the Volume Profile and Order Flow Packs together in one special discounted bundle, you can get them for a limited time at the bottom of this page.
Alright, that’s about it for today’s video. I hope you guys found it useful. I look forward to seeing you next time, and until then, happy trading!
