We have executed a trade on the AUDCAD on the 30-minute chart. This was a short trade after we identified a sign of weakness.
We had to be patient with this trade because we received two widespread bars with ultra-high volume. At Point A we have a widespread up-bar with ultra-high volume with a VSA principle “Supply Coming In”. You know the rule when weakness appears it appears on widespread up bars with ultra-high volume. Immediately after this bar, we had a widespread down bar with an ultra-high volume and this is strength. In the following bar, we saw a VSA principle “Strength Coming In” which was confirmed and we saw prices rally. We placed a trigger point at the low of the ultra-high volume bar as we want the price to break beneath this level in order to look for trade setups.
AUDCAD is being distributed
During a period of distribution, we normally see price rally to the highs of the ultra-high volume bar and also to the lows. These areas are support and resistance levels and there are times when we will see prices break beneath and above these levels as we have seen in this case.
At point B we have prices break the resistance level which entices the retail investor to take a long trade. Immediately after this break, we see signs of weakness, “Supply Comming In” and “Upthrust”. This is a major sign of weakness and we start to see a change in behaviour in the markets and prices drop towards the trigger point with further signs of weakness.
At Point C at the trigger point, we see another sign of weakness, “Upthrust” and the confirmation bar breaking beneath the trigger point. I took the trade immediately after breaking the trigger point as we were confident that this was going to drop further.
Smart Center Pro alerted us to the trade. Firstly we had trend alignment in multiple time frames, 5 min, 10 min, 15 min, 30 min, and 60 min. The 240 min chart was consolidating but changed trend a few hours later. Then it alerted us to the VSA principle upthrust and we proceeded with the trade.
The outcome of the trade is as follows:
Price Entry: 0.93063
Stop Loss: 0.93290
Take Profit: 0.92500
Trade Exit: 0.92500
Profit: USD$419.70
Smart Center Pro
We use SMART Center Pro to find our high-probability trade setups. The SMART Scanner scans charts looking for trend alignment in multiple time frames. When it has detected trend alignment it then looks for Wyckoff VSA principles signifying a potential trade setup.
Once a setup has been identified the Wyckoff VSA indicators are used together with the Strategy Document to confirm the setup and identify an entry point.
Once a trade is entered the trading tools help you manage and exit the trade.
Happy Trading
Previous trade using SMART Center Pro – AUDCHF