Video Transcript:
Hello everyone, it’s Dale here. Welcome to the new video from the Recent Trade series. In this video, I’d like to take a closer look at a trade I took on EUR/USD. This wasn’t an intraday trade—it was a swing trade, which means I traded it using the daily chart. I was aiming for a pretty big take-profit, which I eventually managed to hit. So let me walk you through the trade and let’s see how it went.
Alright, what you see before you is my swing trading workspace, which means this is a daily chart of EUR/USD. The indicators you see here include a Volume Profile. This is a fixed Volume Profile showing volume distribution over the whole year. Then there’s a VWAP—that’s the yellow line—and the first deviations of VWAP, those gray lines. I also use my Flexible Volume Profile, which is a profile you can move around like this. The platform I’m using is NinjaTrader 8. It allows me to customize the software exactly to my liking, which is why I use it.
So let’s take a look at the trade. This trade was a long from the support at 1.1072. It was based on a Volume Profile setup that I like to trade, especially when there’s a strong trend like there was on EUR/USD. There was a very strong uptrend, and I was trading from a significant volume cluster that formed within that trend. The volume cluster was this one—this huge volume cluster formed in the area of the big uptrend. What I like to do is trade from the beginning of the heavy volume zone, which was here. This volume cluster represented a place where buyers were adding to their long positions as they were pushing the price upwards. I was counting on those buyers to defend this heavy volume zone when the price made a pullback. The price made the pullback, and I went long from there.
In addition to the Volume Profile setup, there was also a Fair Value Gap, which comes from Smart Money Concepts. I like to combine that with the Volume Profile. The Fair Value Gap was right here. I trade from the beginning of the Fair Value Gap in a long trade scenario—that’s this level. As you can see, it nicely aligns with the heavy volume zone here.
One additional thing—another setup I had here—was a VWAP setup. Let me zoom out a bit. This VWAP setup was based on Anchored VWAP. You want to anchor the VWAP at very significant places—like, for example, the start of a trend. What we see here is a rotation followed by a strong trend. In that rotation, by the way, there were massive volumes—heavy volumes. This is where the uptrend started, right at this point. This was the breakout of the range, and the uptrend began. So, you want to anchor the VWAP at this important place—where the uptrend started, right at this candle. This is where I anchored the VWAP. As you can see, the price made a beautiful reaction to it here—this pullback and reaction to the VWAP. The second VWAP touch was right here. It aligns with the heavy volume zone and the Fair Value Gap. All these setups pointed to this place, telling me it was a strong support zone.
Those were the reasons I entered the long trade from here. Let me now talk about where I took profit. I took the profit yesterday, and the take-profit was based on volumes. What was standing in the way of further upward movement was this heavy volume zone. Those heavy volumes started roughly here, and this is where I took profit. Take-profit was here because there’s a chance the price could react to this heavy volume zone and reverse. I didn’t want to take that risk. I took the 242 pips here, and that was it.
By the way, the stop-loss for this trade was placed behind the heavy volume zone—it was here, at 1.08088. As you can see, this trade had a positive risk-reward ratio. The take-profit was here, the stop-loss here, and the entry here.
I published this level for members of my trading course about a month ago. Let me show you. This is our backend—this is where we meet. This is the Swing Trading category, and right here is the table I posted. That level on EUR/USD is this one: 1.1072. That’s the long. Everyone who’s a member could have traded this with me.
If you want to join us, it’s easy. Just visit my website at trader-dale.com and click the “Trading Course and Tools” button. It will take you to a page where you can browse my trading education and custom-made indicators. There’s the Volume Profile Pack, Order Flow Pack, VWAP Pack, and Smart Money Pack. You can get them separately or scroll down a bit and get them all together in a discounted combo.
If you’re interested in trading with me and other professional traders in a live trading room every day, then you want to click the “FTA” button—it stands for Funded Trader Academy. There’s a video that explains everything in more detail. And if you’re interested, you can book a one-on-one call. We’ll walk you through the service, show you around, and then you can decide whether or not it’s right for you.
Thanks for watching. I hope you liked the video, and see you next time. Until then—happy trading!
