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Video Transcript:
Hello
everyone, it’s Dale here with new day trading analysis. Today, we’ll take a
quick look at the EUR/USD. What you see before you is NinjaTrader, a
platform with my custom-made Volume Profile and VWAP indicators. This is the EUR/USD
chart on a 30-minute time frame, which is my favorite time frame for day
trading analysis. The level I want to talk about is a strong support at 1.032.
This
level was formed yesterday during macro news. It was unexpected macro news—a
statement by Donald Trump—that caused strong buying activity on the EUR/USD.
This strong buying activity actually created a new level to trade from. If you
look at this area with the Volume Profile, you can see there were heavy volumes
in this small rotation. Afterward, there was the macro news and the resulting
strong buying activity.
This
tells us that this is an important zone, with the beginning of the zone right
here. The aggressive buyers who pushed the price upwards from this heavy volume
zone are likely to defend it. So, when there is a pullback, it’s very likely
that the buyers from this area of heavy volumes will want to push the price
upwards from here again.
As
you can see, there were also a couple of reactions to this area in the past—not
exactly at this level, but in the general area. This means it was a resistance
that turned into a support. When the price broke through that resistance, it
turned into a support level.
Another
factor that adds strength to this level is the huge Fair
Value Gap, highlighted in green. My software marks these gaps—it’s not
actually my software, but something I found online and use regularly. This Fair
Value Gap starts right at our level, adding another layer of strength to it.
Just by itself, this gap could indicate strong support.
So,
this is a strong support level to trade from. Now we just need to wait for a
pullback, and if it occurs, we take the trade from here.
A
very similar scenario occurred on the AUD/USD. Let me show you. In this
case, the trade has already played out, but it’s worth looking at how it
worked. There was a heavy volume zone followed by strong buying activity during
macro news. This marked the beginning of the heavy volume zone, and this was
the reaction. I would like to see something similar on the EUR/USD.
Let
me go back to the EUR/USD chart. You can see that these charts are very
similar—at least this part of the chart looks very similar. I’d like to see a
similar reaction to the one we saw on the AUD/USD.
If
you’re interested in learning more about Volume Profile trading, head over to
my website, Trader-Dale.com. If you
click the button there, it will take you to a page where you can browse my trading
education and custom trading tools.
That’s all for now. Thanks for watching the video, and I’ll look forward to seeing you next time. Until then, happy trading!
