EUR/USD: Volume Profile Analysis 3rd October 2024

Do you want ME to help YOU with your trading?

Learn my proven Volume Profile & Order Flow trading strategies! Get my proprietary indicators and start making progress. We even set the indicators up for you so you can hit the ground running TODAY!

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!

Leave a Comment

Your email address will not be published. Required fields are marked *