NZD/CAD: An Intraday Analysis from A to Z
Today, I am going to do a complete intraday analysis on NZD/CAD. I am going to show you the way I always do it from A to Z.
Rotation vs. Trend
The first thing I check is whether there is a trend or a rotation.
If there is a rotation then I am looking for both buying and selling opportunities (longs and shorts).
When there is a trend, then I am looking only for trades which are in line with the trend.
NZD/CAD is clearly in a downtrend, so I will be looking for short trades only.
Weekly Volume Profiles
After I decided whether I look for longs, shorts, or both I look into Weekly Volume Profiles.
Those should point me to the strongest intraday supports and resistances.
If an intraday support/resistance is clearly visible on the Weekly Volume Profile, then the chances of a successful reaction to it are higher.
Why? Because even those traders who trade bit higher time frames will be interested to trade these volume support/resistances. In other words – such trading levels attract more traders – for example, intraday traders using 15-minute charts as well as swing traders using 1-hour charts.
So, if a level is visible on the bigger picture, then chances of success are bigger.
Summary
In the end I came up with an intraday trading resistance at 0.8397.
Reasons:
1. Downtrend (I want shorts)
2. 1st Deviation of VWAP
3. Weekly POC
4. Intraday trading setup on 30 Minute chart
All those 4 points are in line with each other point to the 0.8397 resistance.
Does this mean it will surely work? Absolutely not!
In trading even the best resistance or support can fail. We as traders must accept that there is no way we can be right in 100% of the cases. In fact I consider an experienced pro trader whoever is able to maintain 60% win rate in the long run. If you manage that, then congratulations, you are a winner in this game!
I hope you guys liked my analysis. Let me know what you think in the comments below!
I will be looking forward to see you on Monday with Weekly Trading Ideas Video!
Happy trading!
-Dale
Rotation vs. Trend
The first thing I check is whether there is a trend or a rotation.
If there is a rotation then I am looking for both buying and selling opportunities (longs and shorts).
When there is a trend, then I am looking only for trades which are in line with the trend.
NZD/CAD is clearly in a downtrend, so I will be looking for short trades only.
Weekly Volume Profiles
After I decided whether I look for longs, shorts, or both I look into Weekly Volume Profiles.
Those should point me to the strongest intraday supports and resistances.
If an intraday support/resistance is clearly visible on the Weekly Volume Profile, then the chances of a successful reaction to it are higher.
Why? Because even those traders who trade bit higher time frames will be interested to trade these volume support/resistances. In other words – such trading levels attract more traders – for example, intraday traders using 15-minute charts as well as swing traders using 1-hour charts.
So, if a level is visible on the bigger picture, then chances of success are bigger.
Summary
In the end I came up with an intraday trading resistance at 0.8397.
Reasons:
1. Downtrend (I want shorts)
2. 1st Deviation of VWAP
3. Weekly POC
4. Intraday trading setup on 30 Minute chart
All those 4 points are in line with each other point to the 0.8397 resistance.
Does this mean it will surely work? Absolutely not!
In trading even the best resistance or support can fail. We as traders must accept that there is no way we can be right in 100% of the cases. In fact I consider an experienced pro trader whoever is able to maintain 60% win rate in the long run. If you manage that, then congratulations, you are a winner in this game!
I hope you guys liked my analysis. Let me know what you think in the comments below!
I will be looking forward to see you on Monday with Weekly Trading Ideas Video!
Happy trading!
-Dale
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