🎯 Top Volume Profile Levels to Trade This Week – 16th December 2024

Hello everyone, it’s Dale here with a new weekly trading ideas video. What you see before you is the NinjaTrader 8 platform with my custom-made Volume Profile and VWAP indicators. The chart in front of you is USD/JPY, and it’s a 30-minute chart. In this video, I want to discuss a support level formed at 152.89. The reason behind this level is mostly a Volume Profile setup. Let me show you—if you look into the recent uptrend in this area, you’ll see a zone where heavy volumes were traded. Because this is an uptrend, it indicates that buyers were adding to their long positions here before pushing the price even higher. This is an important zone for buyers, which we can identify through the Volume Profile.

If there’s a pullback to this level at 152.89, we also have a Fair Value Gap here. In fact, there are two Fair Value Gaps stacked on top of each other. I treat this as one large Fair Value Gap, and the level I marked is at the beginning of that gap, adding strength to the level. Additionally, this level saw a strong reaction in the past, which suggests it was a resistance level that has now turned into support. This combination of setups, primarily the Volume Profile setup, makes this a strong area for potential trades. I always look for heavy volume clusters before taking any trade, and this cluster fits perfectly. Now, we just need to wait for a pullback to this level, and if it happens, we’ll take it from there.

Let’s move on to the next trading idea, which is on USD/CHF. This is also a 30-minute chart, and the scenario is very similar to USD/JPY. Again, there was a strong uptrend, and within that uptrend, a heavy volume cluster formed. This suggests buyers were active, adding to their long positions. The level I am watching is at 0.8890. There’s also a small Fair Value Gap here, highlighted in green. If you zoom in, you’ll see that the gap starts close to our level, adding confluence. Another factor supporting this level is the strong reaction it had in the past, which shows it was a resistance that turned into support. We just need to wait for the pullback and go long from there. It’s a very similar scenario to the previous pair.

One more thing I want to point out—let me zoom out a bit—if you recall one of my older videos, I talked about opening gaps. Specifically, I mentioned this gap, and I said that when it closes, the market would likely react to the heavy volume zone above it. Let me highlight the heavy volume zone. As you can see, there was indeed a reaction to this zone. This shows that the market remembers these levels, and I hope you remembered it too and traded accordingly. The market eventually closed the gap, as most gaps tend to close sooner rather than later, and then it reacted to the heavy volumes behind it.

Now, let’s move to the next trading idea, which is on EUR/CHF. This is another 30-minute chart. I had a short level here, based on the volumes formed during a rejection of higher prices. The level was at 0.9387. Unfortunately, the price turned slightly before reaching the level—just 0.3 pips away—so I wasn’t able to enter the trade. Since I only trade the first test of a level, this level is no longer valid. However, I want to discuss two support levels on this pair.

The first support is at 0.9345. It’s based on heavy volumes formed within an uptrend zone, indicating that buyers were active here. If the price pulls back to this level, there’s a high chance of a reaction. As with the other pairs, there’s also a Fair Value Gap highlighted in green, which adds strength to the level. Furthermore, there was a strong reaction at this level in the past, showing it was a resistance that turned into support. This setup is part of a combo I frequently trade—a combination of Volume Profile and Fair Value Gaps.

The second support level is at 0.9286, based on the weekly Point of Control. If you look at the cumulative volume profile from the previous week, it shows the distribution of volumes. The Point of Control—the area of heaviest volumes—is here. However, I rarely trade directly from the heaviest volume area; instead, I trade from the beginning of the heavy volume zone. In this case, the level is at 0.9286, and it aligns with a Fair Value Gap. This makes the level even stronger, as it suggests buyers were building long positions here before pushing the price higher. If there’s a pullback, the buyers will likely defend this area. Ideally, the price would pull back to the first support, react, then pull back to the second support and react again.

If you’re interested in learning more about Volume Profile trading, head over to my website, Trader-Dale.com. Click on the “Trading Course and Tools” button to explore my most popular trading education and indicator packs. The Volume Profile pack will teach you everything about Volume Profile trading, while the Order Flow pack focuses on day trading with Order Flow. Both packs include my custom indicators: Volume Profile, Order Flow, and VWAP. If you want both packs, you can get them at a discounted price at the bottom of the page.

If you’d like to trade with me and other funded prop firm traders daily in a live trading room, click the “FTA” button on my website. There’s a video there that explains everything in detail.

Before wrapping up the video, I’d like to announce the winner of last week’s contest. The prize was my custom-made Volume Profile and VWAP indicators for the TradingView platform. The winner’s name is now displayed on your screen—congratulations! For this week’s contest, leave a comment below this video on YouTube. I’ll randomly pick one person next week to win this set of custom indicators.

Thanks for watching the video, and I’ll see you next time. Until then, happy trading!