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Technical Analysis
Volume Profile - Daily Analysis
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[QUOTE="Trader Dale, post: 178824, member: 39433"] [B]AUD/CAD: A Complete Volume Profile Analysis[/B] Today, I would like to do an intraday analysis of the AUD/CAD. What caught my eye here were two things. First, [B]strong buying activity (uptrend).[/B] Second, [B]rotation areas created within the uptrend.[/B] There are usually heavy volumes traded in rotation areas like these so I used my Volume Profile to check them out. [SIZE=5][B]Significant volume areas[/B][/SIZE] The Volume Profile shows two significant volume areas here. The first one at [B]0.8629[/B] and the second (the lower one) at [B]0.8546.[/B] What happens when there is such a heavy volume area created in an uptrend? This usually indicates that [B]strong buyers were adding to their long positions there[/B] (in the rotation areas) and [B]then pushing the price even higher.[/B] When the price makes it back to these levels again (in a pullback) then those strong buyers will most likely [B]defend their longs[/B] and they will push the price upwards again. This is what I expect to happen at those two heavy volume levels. If you look at the [B]first one, then you can see that it actually got tested today[/B] in the Asian session. There was a fast and precise reaction to it. This makes this level spent and [B]I don’t really expect any more reactions to it.[/B] Well, in fact, there could be another reaction to it but the chances are lower now… The second level at [B]0.8546 is still intact[/B]. It hasn’t been tested yet and I expect a buying reaction from it (when there is a pullback). [I]Below is the AUD/CAD chart; 30 Minute time frame:[/I] [URL='https://www.trader-dale.com/wp-content/uploads/2020/03/Screenshot_1349.png'] [IMG]https://www.trader-dale.com/wp-content/uploads/2020/03/Screenshot_1349.png[/IMG] [/URL] [SIZE=5][B]Resistance turns into a Support[/B][/SIZE] There is also another thing I like about this 0.8546 level. The thing is that it [B]worked as a resistance in the past [/B]– the price bounced twice off this level. I marked this in the picture above. When the price went through this resistance, it then became support. This is a simple Price Action setup which I like to use. So, not only we have the [B]Volume-based setup[/B] but we also have a [B]resistance→support setup[/B] which confirms the 0.8546 level. [SIZE=5][B]Weekly Point Of Control[/B][/SIZE] That’s not all! There is one more confluence to all this. This confluence is on a [B]Weekly Volume Profile[/B]. This Weekly Volume Profile tool shows how the volumes got distributed throughout the whole week. The picture below shows a Weekly Volume Profile from the previous week (the profile on the left). As you can see, the [B]Point Of Control (= place where most of the volumes got traded) was just a bit above our 0.8546 level.[/B] Pretty cool, right? This adds one more confluence to our level! Weekly POC is definitely a very important place in any chart. Every institutional trader who works with this or a similar time frame knows where the weekly POC is. And so should we! [I]Below is the AUD/CAD chart; 60 Minute time frame; Weekly Volume Profiles.[/I] [URL='https://www.trader-dale.com/wp-content/uploads/2020/03/Screenshot_1350.png'] [IMG]https://www.trader-dale.com/wp-content/uploads/2020/03/Screenshot_1350.png[/IMG] [/URL] I hope you guys liked today’s analysis. Let me know what you think in the comments below! Stay safe and happy trading! -Dale [/QUOTE]
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