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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 Euro. This is a 30-minute chart of the EUR/USD on the NinjaTrader 8 platform with my custom Volume Profile and VWAP indicators. I would like to discuss the strong buying activity here and the levels that I currently have within this buying activity.
The first level is pretty close and very recent. It’s a long position at 1.0992, based on a heavy volume zone that formed within this uptrend. Let me draw the Volume Profile over the entire uptrend zone. As you can see, this is the first volume cluster here. There are some volumes in this area as well, but I’m more interested in those volumes that accumulated before the start of this new buying activity. These are the volumes here. Let me move the Volume Profile back.
So, what this volume cluster and the other clusters I have represent are buyers who are pushing the price upward and adding to their long positions in these areas where the heavy volumes are. In those areas, buyers were adding to their long positions, and these buyers are likely to defend those zones because they are clearly important to them. So, when there are pullbacks, if there are pullbacks, there should be reactions. Ideally, we see a pullback to the first support, followed by a reaction, then a pullback to the second support with another reaction.
Another support level is here; let me draw a line. It’s at 0.955, and another one is at 0.942. Both are based on those heavy volume clusters. This last one is not as significant, but what I like about it is that the first deviation of the weekly VWAP is very close to this level. If, at the time of the pullback, the first deviation is still around this level, it will be a strong confirmation to enter the trade because the price tends to react to the first deviation of VWAP. If it’s around, it will confirm the trade. If it’s not, I’ll definitely want to use order flow to confirm the trade. I want to see buyers jumping in here because, as I mentioned earlier, the volumes here are not as heavy as in other cases, so I’ll need some additional confirmation—if not VWAP, then order flow confirmation.
Another support level is here, and the logic is the same in all cases—heavy volumes within a trend. Now, with this one, there’s a nice confluence. If I scroll back a bit, you can see that the price was reacting to this level in the past—here, here, and here. Not exactly at the level, but in this general area. That means it was a resistance in the past, and that resistance has now turned into support when the price moved past it. In combination with the significant volume cluster here, this makes a very nice level to trade from.
So, what we need to do now is wait for those pullbacks. The ideal scenario, which never happens exactly, but in an ideal case, would be pullback-reaction, pullback-reaction, and so on. But we’ll see what happens.
One more thing: be careful about macro news today. It’s the CPI news—the inflation news—so be cautious around the news because markets could become volatile and unpredictable. I recommend not trading during the news and the post-news volatility.
Alright, that’s it for now. If you’re interested in learning more about Volume Profile trading, head over to my website, Trader-Dale.com. If you click the “Trading Course and Tools” button, it will take you to a page where you can browse my trading education and custom trading tools. There’s the Volume Profile Pack, which will teach you everything about Volume Profile trading, the Order Flow Pack, which will teach you everything about day trading with Order Flow, and the newly released VWAP Pack, which is all about VWAP trading. There are videos you can watch that will show you everything in detail. If you’re interested in getting all three together at a discount, you can get the Volume Profile and Order Flow Pack for $697 or all three packs—Volume Profile, Order Flow, and VWAP—for $897 at the bottom of the page.
Alright, that’s all for now. Thanks for watching the video, and I look forward to seeing you next time. Until then, happy trading!
