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Video Transcript:
Hello everyone, it’s Dale
here with a new day trading analysis. Today, I’d like to talk about the USD/CAD.
What you see before you is the NinjaTrader 8 platform with my custom Volume
Profile and VWAP indicators. This is a USD/CAD 30-minute chart.
There are a couple of levels
here that I’d like to discuss. Let me first start with the short levels. The
first short level is at 1.4070. If you look at how the volumes were
distributed throughout this week, you can see it on the cumulative profile—this
is the Weekly Volume Profile. The Weekly Volume Profile shows that the Weekly
Point of Control (POC) was right here. This means that the heaviest volumes for
the week were traded at this level, and from that Weekly POC, the price moved
aggressively downwards.
This now represents a strong
resistance level because heavy volumes were traded there, indicating it was an
important area for sellers. When there is a pullback, the sellers from this
level are likely to become active again and push the price downwards from that
heavy volume zone where the Weekly POC was formed. Additionally, there is also
a Fair
Value Gap (FVG) here—a concept from Smart Money trading—which adds further
strength to this level.
Currently, the price is
reacting to the Point of Control from the previous week. This shows how volumes
were distributed throughout last week. The Weekly POC from the previous week is
acting as a support level, which I shared with members of my trading course. I
hope they are trading it now, as the price is reacting nicely to that Weekly
POC.
Now, moving on to the second
short level. This one is a bit harder to identify, but I’ll explain why I have
marked it at 1.4044. Normally, during a downtrend like this, I use the
Volume Profile to analyze the trend area and spot heavy volume clusters to
trade from—like this one. While this particular volume cluster isn’t especially
strong, it holds importance because, in the past, it was a strong support
level. As you can see here, there was a heavy volume zone that acted as
support, but the price eventually broke through it with no reaction. Now that
the price is trading below this level, the former support has turned into
resistance.
Additionally, there is
another Fair Value Gap here (highlighted in red), with the short level sitting
at the start of the gap—exactly where I prefer to trade FVGs. In summary, we
have three reasons to consider a short trade here: the volume cluster within
the trend, the previous support turning into resistance, and the Fair Value
Gap. Now, we just need to wait for a pullback. If the price revisits this
level, it would be an ideal place to go short.
Finally, let’s discuss the
last level, which is a long. This level is at 1.3940, and it is based on
the heavy volume formed during a strong rejection of lower prices. Let me show
you using the Volume Profile. This level is tied to the Weekly Point of Control
and reflects the heavy volumes formed within that rejection. These volumes
suggest that buyers stepped in at this level to defend it in the past, pushing
the price aggressively upwards into a new uptrend. If the price revisits this
level, it is likely those buyers will defend it again, pushing the price
upwards once more.
Before I wrap up, let me
quickly mention my special Black Friday sale
currently running on my website, Trader-Dale.com.
If you click the “Trading
Course and Tools” button, it will take you to the Black Friday page.
The Black Friday offer lets you get my most popular trading and indicator packs
at a massive discount. The Volume Profile Pack teaches you everything about
Volume Profile trading and includes my custom-made Volume Profile and VWAP
indicators. The Order Flow Pack focuses on day trading with Order Flow and also
includes my custom-made Order Flow and Volume Profile indicators.
If you scroll down, you’ll
find a special Black Friday bundle that includes both packs for only $497 USD
Thank you for watching, and
I look forward to seeing you next time. Until then, happy trading!
