AUD/CAD: Volume Profile And Price Action Swing Trading Analysis

Hello guys,

today, we will have a look at a swing trading analysis on AUD/CAD.

For swing trading analysis I like to use 4-hour charts or Daily charts. Today, I will do the whole thing on the Daily chart as it is really nicely visible and easy to understand there.

So, why have I picked AUD/CAD? Because there is a nice and strong trend. If you have been following me for some time then you know that I like to look for significant volumes that were traded inside such trends.

I look for those using my Flexible Volume Profile.

Volume Profile Setup
In this case, I used my Flexible Volume Profile to look into the downtrend area. It revealed a strong Volume Cluster.

Such Volume Cluster represents a place where strong Sellers were adding to their Short positions – it reveals their big, institutional volumes.

When the price makes it back to this Volume Cluster area (starting at 0.9473) then those strong institutional traders should defend it. They will defend it because they placed a lot of their Shorts there before (this place is important for them).

This is why this zone should work as a strong Resistance.

This setup is called “Volume Profile: Trend Setup“

Price Action Setup
Another reason this 0.9473 zone should work as a Resistance is that it worked as a strong Support in the past.

How can I tell? Because the price bounced off this zone twice, and always very strongly.

When this Support got breached it became a Resistance. This is my favorite Price Action setup that I like to use as a combo with my Volume Profile setups.

You can learn more about this setup here:

Price Action Setup: Support → Resistance

What I like about this is that those two setups (Volume Profile and Price Action setups) nicely align and both point to the same Resistance area around 0.9473.

I hope you guys liked my analysis! Let me know what you think in the comments below!

Happy trading,

-Dale