🎯 Top Volume Profile Levels to Trade This Week – 2nd December 2024

Hi 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 Volume Profile and VWAP indicators. The chart displayed is the CAD/CHF on a 30-minute time frame. I want to talk about this resistance level at 0.6332.

If you look at the CAD/CHF chart, there’s a strong trend followed by a rotation. By applying the flexible Volume Profile to the trend zone, you’ll notice a significant heavy volume zone. This heavy volume zone represents a place where sellers were adding to their short positions as the price moved downward. Sellers were active here, and the level I’ve marked is the beginning of that heavy volume zone. When the price pulls back to this level, there’s a good chance those sellers will defend the zone and push the price downward again.

For this trade, an ideal stop-loss placement would be above the small swing point near this level. This placement is strategic because it’s behind the heavy volume zone (the resistance) and above the swing point high. In my opinion, this is a good spot for a stop loss. If you trade with a 1:1 risk-reward ratio, the take profit could be set somewhere nearby, which works well.

Another factor strengthening this level is the strong selling activity originating from it. Additionally, there is a Fair Value Gap highlighted in red. This gap begins very close to our level, adding more confluence to the trade. For these reasons, I believe the price should react at this level. Now, we simply need to wait for the pullback and take the trade if it occurs.

Let’s move to the next chart, which is CHF/JPY. Once again, we’re looking at a 30-minute chart. There’s a strong downtrend here, so I’m focusing only on short trades. I’ve identified two resistance levels: the first at 171.54 and the second at 172.50. Using the flexible Volume Profile on the downtrend zone reveals these levels.

The first resistance is marked by massive volumes formed during the downtrend, indicating where sellers were active. Additionally, there was a sharp and aggressive sell-off originating from this level, highlighting the sellers’ strength. Regarding the stop-loss placement for this trade, I recommend placing it above a strong high, not near weaker highs. Placing the stop loss above a strong high ensures it’s above potential liquidity traps and also behind the heavy volume zone.

The second resistance level shows a confluence of setups. The price reacted to this zone in the past, confirming it as a support level. When the price broke below it, the support turned into resistance. Combining this price action setup with the heavy volume zone makes it a strong level to trade from. Ideally, the price would pull back to the first resistance, react, and then pull back to the second resistance for another reaction. We’ll need to wait and see how this plays out.

Now let’s move to the EUR/GBP chart. This is also a 30-minute time frame. Using the Volume Profile on the downtrend zone, you’ll notice a heavy volume zone near 0.8315, which I’ve marked as resistance. This zone represents a place where sellers were adding to their short positions during the downtrend. Since sellers are dominating in this scenario, it’s likely they’ll defend this zone if the price pulls back, pushing it downward again.

If you’re interested in learning more about Volume Profile trading, head over to my website at Trader-Dale.com. Click on “Trading Course and Tools” and it will take you to the relevant page. While our Black Friday sale has ended, we’ve decided to extend the offer for one more day as part of a Cyber Monday sale. You can get my most popular trading education and indicator packs (Volume Profile and Order Flow) at a significant discount until midnight. You can purchase these packs individually or scroll down to get them bundled at an even greater discount.

Before wrapping up, I’d like to announce the winner of the contest we had last week. The prize was my custom-made Volume Profile and VWAP indicators for TradingView. On your screen now, you’ll see the name of the contest winner—congratulations! For the next week, we’ll hold another contest. To participate, simply leave a comment below this video (which I’ll publish on YouTube), and I’ll randomly select one winner to receive the same set of custom indicators.

That’s all for now. Thanks for watching, and I’ll see you in the next video. Until then, happy