CAD/CHF Volume Profile analysis 📊

Hello guys,

in today’s day-trading analysis I would like to have a closer look at CAD/CHF.

Yesterday, there was a tight rotation, and then the price broke out and went upwards into a new trend.

What usually happens in such cases is that BIG trading institutions accumulate their huge trading positions (enter trades) in a rotation and then they push (manipulate) the price to shoot into a trend.

Those BIG guys need to hide their intentions and that’s why they need to accumulate their trading positions slowly and unnoticed (without starting a trend too soon). That’s why they accumulate those trades within a rotation.

Just like the one on the picture below.

When I see a rotation followed by a trend I am always interested in how the volumes were distributed throughout this area. What I want to see is a heavy volume zone in the rotation (at the place from which the trend starts).

For this, I use my Flexible Volume Profile. This tool helps me to easily read the market and reveal this big institutional volumes.

What the picture above is telling me is this: there was a rotation area where heavy volumes were accumulated (traded). Those were most likely BIG institutional traders accumulating their Longs. When they were finished with the accumulation, they started to push the price aggressively upwards (they do it with aggressive Market Orders).

What now?
When the price makes it back into this heavy volume zone (starting at 0.7345) then I think the strong Buyers will want to become active here again. This zone is clearly important for them as they placed a lot of their trades there.

I expect they will want to defend this zone and push the price upwards from here again.

This should make this zone (starting at 0.7345) a strong day-trading Support.

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

Happy trading,

-Dale