First, there was a rotation in which heavy volumes got accumulated (traded). You can see the volumes on the Flexible Volume Profile indicator below.
Then, after the big guys (trading institutions) placed their big trades there, they pushed the price upwards into an uptrend.
This uptrend tells us, that the volumes placed in the rotation (blue rectangle) were Longs.
This is an information we can work with. Now we know where strong institutional buyers placed a lot of their Long positions. It is around 0.6430.
This are is now very important place for them.
When the price makes it back to this heavy volume area again then, those buyers will want to protect it and to push the price upwards from there again.
Most likely from the place where they placed the most of their positions (0.6430).
The Bigger Picture – Weekly Volume Profile Let’s now check the bigger picture and have a look at the Weekly Volume Profile.
The Weekly Volume Profile shows how volumes were distributed throughout the whole week. I always check this profile with all my intraday trades. The ideal scenario is when the trading levels I pick are nicely visible there.
The reason is that the Support/Resistance will not be important only for traders on the lower time frames, but also for traders who are trading higher time frames.
In this case, it couldn’t be better! Our 0.6430 Support lies exactly at Point Of Control (POC) of the week. This means that the heaviest volumes this week were traded there.
This makes the 0.6430 a very important. The Weekly POC is a very strong place to trade from, even if it was just on it’s own, without any other signals/confluences.
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