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Video Transcript:
Hello everyone, it’s Dale here with new day trading analysis. Today I’d like to talk about the ES, which is futures for the S&P 500. What you see before you is the NinjaTrader 8 platform with my custom-made Volume Profile and VWAP indicators. This is the ES symbol on a 30-minute time frame. Today, I’d like to discuss two strong supports, both based on the strong buying activity that took place yesterday.
The first support is at 5539 and is based on a heavy volume zone formed in this little rotation. Let me show you on the Volume Profile. If I use the Volume Profile over the trend area like this, you can see that there was a heavy volume zone beginning at that level. Generally speaking, I like to trade from the beginnings of heavy volume zones because that’s where I have the best results. This heavy volume zone represents buyers who were adding to their long positions as the price was going higher, and those buyers are likely to defend this zone when the price returns to that level. So, chances are there will be a reaction. What we need to do is just wait for that pullback, and if it occurs, take it from there.
Apart from this heavy volume zone within the trend, there’s also another factor that adds strength to the level. If you look at those past reactions, it means that this area worked as resistance because the price was reacting to that general area. Now, when the price moved past that resistance, it turned into support. So, that’s a price action setup that adds strength to our Volume Profile setup here, creating a nice two-setup combo. That’s for the first support.
The second support is at 5513 and is based on another heavy volume zone. This zone formed before this uptrend. If you compare this heavy volume zone with the previous one, it is not as strong, but it’s not always about the strength of the volume zone; it’s also about the location where that zone was created. In this case, there was a rotation before a strong uptrend, so this is an important place because the uptrend started from there. Additionally, there are heavy volumes here, indicating that this level is important and that big players who move and manipulate the market will probably want to trade and react from this place. Ideally, there will be a pullback to the first support with a reaction, then another pullback to the second support with another reaction.
To improve your trade entry, you can use order flow software. It helps better time your trade entry, confirm the trade entry, and improve your trade exits. Today and on Friday, there are very strong macro days. Let me show you on Forex Factory. Today, Wednesday, there are strong macro news events that could affect the ES. I don’t recommend trading during or after the news because the volatility could be high and
unpredictable. So, be cautious around the news today. As I mentioned, Friday is also a strong macro day with the NFP, one of the strongest news events affecting the US dollar, and the unemployment rate. These could affect the ES, so be careful around those levels if they get hit during or after the news volatility. I recommend not trading those levels during those times as the outcome could be unpredictable.
One last thing before I wrap up this video: If you visit my website, trader-dale.com, I currently have an Independence Day Sale. You can get a discount on my best educational indicator packs. If you click the button, it will take you to the page where you can get them. You can get the Volume Profile Pack, which teaches everything about Volume Profile trading and includes my custom-made Volume Profile indicators. You can also get the Order Flow Pack, which teaches everything about day trading with order flow and provides my custom-made indicators. Both packs are available at a discounted price. If you want both together, scroll down a bit, and you’ll find a special deal where you can get the Volume Profile Pack and the Order Flow Pack together for only $597. That’s the Independence Day sale I’m currently running. Check it out. There are videos you can watch that show everything included in those packs.
Alright, that’s about it. Thanks for watching the video. I look forward to seeing you next time, and until then, happy trading!
