🥊 The MOST POWERFUL Trading Combos (Volume Profile, VWAP and Price Action)

Hello everyone, it’s Dale here with a new day trading analysis. Today, I’d like to focus on combos or confluences of multiple trading strategies. Let’s start with an example on the ES. This is a 30-minute chart of the ES, which is futures for the Standard & Poor’s 500 Index. I want to talk about this resistance, which got hit yesterday. Let me show you something.

Let’s start with a volume profile here. If you draw the profile over this trend area, what definitely stands out is this heavy volume zone. Everyone can see it, but that’s not the only thing. If you look here, there was an opening gap which very often tends to get filled, and the price likes to react to the volumes which occurred before the gap. Those are the volumes. So, first was the heavy volume zone, and second was the gap.

Now, the third thing is if you use the Anchored VWAP and anchor it to the start of this strong downtrend, this is definitely an important place. The start of the downtrend is where you want to anchor the VWAP. This is the candle that started the downtrend, so this is definitely a very important place around which trading decisions were made. Here is what it tells you: this is the first touch (short from here), this is the second touch (short from here). See, it’s very close to our level, so it confirms the strength of that level. That’s another thing.

Now, the last thing here—I don’t know if you know this, but there’s this AB=CD strategy. I talk about this strategy in my volume profile book and in the volume profile video course. Simply put, you use the Fibonacci tool on significant swing points and move it like this: point A to point B, then here is point C, and you need to find point D where the price will turn. You measure the distance with the Fibonacci tool from point A to point B, then start at point C, and this is point D—this is the resistance where the price should react. So, that’s the AB=CD setup, and as you can see, it aligns precisely with that heavy volume zone with the gap. Also, there’s that anchored VWAP below it, and all of that is telling you this is a strong zone to go short from.

Alright, see how the market reacted there? That’s the sort of combo I definitely like to trade and look for. This trade is obviously done, so I won’t be trading from this zone anymore.

Let me show you something on the NZD/USD and let’s talk about combos here. This is a 30-minute chart on the NZD/USD. We have a strong trend, and if you use the volume profile over the trend zone, you can see that this heavy volume stands out. This is the level I want to trade from. This is the support at 0.5957. It hasn’t been tested yet, so I’m waiting for a pullback, and if it occurs, I’ll go long from there.

Now, let’s talk about the combos and the confluences with other trading strategies. Let’s first take a look at this weekly volume profile. As you can see, massive volumes were traded in this zone. If you combine it with the previous week, this is the point of control—the two-week point of control just a tiny bit below our level. That’s a very important zone. From this zone, the price went upwards, and it’s likely that when the price comes back, this will work as support—those massive volumes here. Another reason to go long from there is that we currently have the weekly VWAP here (this yellow line).

Also, if we anchor a VWAP at the most important place right now, that’s definitely this candle, the swing low. Anchor it to that candle that created that swing low, and at this moment, it is right here at our level. Ideally, it stays somewhere around this place when the pullback occurs because if it stays there, it will massively add strength to that level, making another nice confluence or combo.

Alright, that’s what I’m talking about when I tell you to look for those combos or confluences. I very rarely trade just based on one setup; I’m always looking for those kinds of combos.

I hope you found this useful. If you’d like to learn more about volume profile trading, head over to my website at Trader-Dale.com. If you click the button that says “Trading Course and Tools” it will take you to a page where you can browse my trading education and tools. Here is the volume profile pack, which will teach you everything about volume profile trading. Below that, there’s the order flow pack focusing on day trading with order flow. Below that, there’s a brand new VWAP pack that will teach you everything about trading with VWAP and anchored VWAP. If you’re interested in getting all three together, scroll down a bit, and there’s a combo of all three packs for a discounted price.

Thanks for watching the video, and I look forward to seeing you next time. Until then, happy trading!