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Video Transcript:
Hello
everyone, it’s Dale here with a new day trading analysis. What you see before
you is the NinjaTrader 8 platform with my custom-made Volume Profile and VWAP
indicators. The chart before you is the EUR/USD chart, and it is a
30-minute time frame. I’d like to talk about resistance, and that resistance is
at 1.1070. Let me show you what it is based on.
Let’s
start with the bigger picture. Let’s take a look at the weekly Volume Profile
here, which is the gray profile on the left. It shows how the volumes were
distributed throughout this whole week. Now, if you look at the shape of the
profile, it is shaped like a letter “B,” which means that sellers are
in control. The important places you want to trade from are the Point of
Control—the weekly Point of Control—which is the place where the volumes were
the heaviest. Also, there are the volumes formed within this zone of the
B-shaped profile.
Now
let’s talk about this heavy volume zone, which is the weekly Point of Control.
The heaviest volumes throughout this whole week were traded here, and those
volumes were traded in this rotation. From there, the selling activity
continued, making this a very nice level to trade from. So, if we see a
pullback to that weekly Point of Control, chances are the sellers who were
active here will become active again, defend this important zone, and push the
price downwards from there again.
Alright,
so that’s the weekly Point of Control. You can either look at this level with a
weekly Volume Profile like the gray one here, or you can use the Flexible
Volume Profile, which looks into specific areas, like the rotation followed by
the selling activity. In either case, it will point to that strong resistance,
which is here.
Now,
as you can see, the resistance is just a touch above the Point of Control, and
the reason is that there is a Fair Value Gap. I’ll zoom in a bit. Right here,
this is the Fair Value Gap, and it forms when there’s a gap between this candle
and this candle. Between those two points, if the first candle and the third
candle in this three-candle formation don’t overlap, then a Fair Value Gap is
formed. I have an indicator that automatically draws that. This is one of the
things I implemented into my Volume Profile trading from Smart Money trading.
If you guys are interested in Smart Money trading, we have a Smart Money expert
in our live trading room that we run every day. I’ll drop a link below this
video—you can click it and learn more about it.
Anyway,
let’s get back to this analysis. When there’s a short trade scenario, like in
this case with a downtrend, I like to trade from the top border of the Fair
Value Gap, which is here. That’s the level, and that’s why I have that level a
little bit above the weekly Point of Control.
Now, if you look at the second level I have on the EUR/USD, this one is based on a Volume Profile setup called the Trend Setup. You trade this when there’s a trend and you trade heavy volumes within the trend. Alright, so this is the beginning of that heavy volume zone, and also the beginning of a Fair Value Gap—that’s the red zone here, which you can see. The Fair Value Gap is from here, from the bottom of this candle to the top of this candle, because those two candles don’t overlap, forming the Fair Value Gap. This adds strength to that level.
Alright,
so the level is at 1.1132. Hopefully, we will see a pullback, and we’ll
be able to trade from there. By the way, there’s also a nice confluence with
this level because the price reacted to this zone in the past—not exactly at
that level, but I don’t need exact reactions. I just need to know that
somewhere in here there was a strong support, which has now turned into
resistance as the price breached that support.
Alright,
so that’s the plan on the EUR/USD. The ideal scenario would be a pullback
to the first resistance and a reaction, then a pullback to the second
resistance and another reaction.
Now,
I’ve got big news for you! Yesterday, I started a huge sale on my best
education and indicator products. You can check it out on my website Trader-Dale.com. This is
it—Trader-Dale.com. If you click “Trading
Course and Tools” it will take you straight to the page with the
special Halloween sale. What this is all about is that you can get all my best
educational and indicator packs massively discounted. These include the Volume
Profile pack, the Order Flow pack, and the VWAP pack. If you want all three
together, just scroll down a bit, and you will see the price for all three
packs combined.
Alright,
so that’s the special deal! If you have any questions regarding the sale or
anything else, just shoot me an email at contact@trader-dale.com, and I’ll be
happy to help. Alright, thanks for watching the video, and I look forward to
seeing you next time. Until then, happy trading!