Use Volume Profile after the news – Volume Accumulation Setup

EUR/USD: A Combination of Three Trading Setups

ECB Macro News
The biggest thing yesterday was without any doubt the ECB Meeting and the following Press Conference.

It was not only important from the fundamental standpoint, but also because it helped EUR/USD to break out of a price channel and travel quickly downwards.

Before the ECB macro news came out, the price was in rotation. What do you think happened in this rotation?

In my opinion, the big guys were building up their selling positions there and then when the ECB event came up, they started aggressive selling activity to push the price downwards.

Use Volume Profile after the news – Volume Accumulation Setup
So, the best thing you can do in such a situation is to use my Flexible Volume Profile and look into the rotation area to see how the volumes were distributed there and where exactly the volumes were the heaviest (this place is called Point of Control = POC).

Why? Because at POC, the big guys (big financial institutions) placed most of their volumes (positions). Those guys will try and defend those positions in the future. For this reason this level should work as a resistance.


1st confirmation – Weekly POC
If you look at how price was moving this whole week, then you can notice, that it was more or less in a rotation.

You may have learned from my book, then when there is a rotation big guys are building up their positions.

2nd Confirmation – SUPPORT becoming RESISTANCE Setup
Apart from the weekly POC, there is also one more confirmation to this level.

It is the SUPPORT becoming RESISTANCE setup.


Never get too crazy about one trade!
Is this the best level ever and 100% sure to work? No it is not! Not even the best looking levels have 100% probability of success.

In this game, the winner is whoever is able to guess 6 out of 10 cases right. If you can do this in the long run, then you are a real master.

So, yeah. This level does looks good and I like it, but I am not going to get crazy with trading it. I will trade it with the same rules as any other trade.

In my opinion, this trade has higher than 60% probability of success, but it is definitely not 100%

Important thing is that you don’t get crazy about any trade you like. Even the best looking trading levels can fail and you don’t want to be betting too much on them!



Thanks for reading this and have a GREAT weekend!

-Dale