AUD/CAD: Volume Profile 📊, Price Action 📋 Analysis
Hello guys,
in today’s day trading analysis I would like to look into the AUD/CAD.
There was a nice downtrend formed recently. In this downtrend, there were two heavy volume zones formed. They are best seen if you use my Flexible Volume Profile indicator.
As the sellers were pushing the price into the downtrend, they were adding to their short positions. They did so mostly in those two heavy volume areas.
Usually, when the price makes a pullback into such areas at some point in the future, those areas work as strong Supports/Resistances.
You can actually see that in the first heavy volume area (around 0.9380), which already got tested and the price reacted nicely to it.
Strong volume-based resistance at 0.9417
The second heavy volume area, has not been tested yet. This means that it is still a strong resistance.
The heaviest volume peak in this area (= the Point Of Control) was at 0.9417. This is where most of the volumes were traded. Because of this, it is the most important place the sellers will want to defend. That’s why I think it will work as a strong resistance.
Weekly POC
There is one more nice confluence to this 0.9417 resistance. It is the Weekly POC.
If you look at the Weekly Volume Profile (shows how volumes were distributed in this whole week), you can clearly see that the heaviest volumes were traded at 0.9417 – that’s our level!
Weekly POC is a strong level just by itself, but when you combine it with other trading setups then the probability of having a good reaction dramatically rises!
I hope you guys liked today’s analysis! Let me know what you think in the comments below.
Have a GREAT weekend and happy trading!
-Dale
in today’s day trading analysis I would like to look into the AUD/CAD.
There was a nice downtrend formed recently. In this downtrend, there were two heavy volume zones formed. They are best seen if you use my Flexible Volume Profile indicator.
As the sellers were pushing the price into the downtrend, they were adding to their short positions. They did so mostly in those two heavy volume areas.
Usually, when the price makes a pullback into such areas at some point in the future, those areas work as strong Supports/Resistances.
You can actually see that in the first heavy volume area (around 0.9380), which already got tested and the price reacted nicely to it.
Strong volume-based resistance at 0.9417
The second heavy volume area, has not been tested yet. This means that it is still a strong resistance.
The heaviest volume peak in this area (= the Point Of Control) was at 0.9417. This is where most of the volumes were traded. Because of this, it is the most important place the sellers will want to defend. That’s why I think it will work as a strong resistance.
Weekly POC
There is one more nice confluence to this 0.9417 resistance. It is the Weekly POC.
If you look at the Weekly Volume Profile (shows how volumes were distributed in this whole week), you can clearly see that the heaviest volumes were traded at 0.9417 – that’s our level!
Weekly POC is a strong level just by itself, but when you combine it with other trading setups then the probability of having a good reaction dramatically rises!
I hope you guys liked today’s analysis! Let me know what you think in the comments below.
Have a GREAT weekend and happy trading!
-Dale
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