🎯 Top Volume Profile Levels to Trade This Week – 6th January 2025

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 is EUR/USD on a 30-minute timeframe. In this video, I want to talk about a resistance level formed at 1.0349. If you look at this downtrend zone and use the Volume Profile to analyze the volumes within the zone, it reveals a significant volume cluster here. This volume cluster is the main reason for this resistance, as it indicates that sellers were active in this area, adding to their short positions as the price was dropping during the downtrend. This makes it an important area for sellers, and if the price reaches this level again, the sellers are likely to defend it. When the price approaches the beginning of this heavy volume zone, there is a high chance of a reaction.

Additionally, if you look here, you’ll notice a fair value gap. This is a concept from smart money trading, and I like to trade from the beginning of such gaps, which, in this case, aligns nicely with the heavy volume zone. This alignment adds strength to our level. These are the two main reasons why I like this resistance level. There are two options for placing a stop-loss for this trade. You can either place it just beyond the heavy volume zone, approximately seven pips away, or, if that feels too tight, you can place it slightly higher above the swing high, which is also beyond the heavy volume zone. In this case, the stop-loss would be about 20 pips away.

Now let’s move to the next trading idea, which is on USD/JPY. This is a 30-minute chart of USD/JPY, and the Volume Profile displayed here is a weekly profile. It shows a D-shaped profile, which indicates a balance between buyers and sellers. When I see such profiles, I like to trade from the extremes, shorting from the upper extreme and going long from the lower extreme, provided there’s a setup I like at these levels. In this case, there’s a nice long trade setup at the support level of 156.21. This setup is based on the rejection of lower prices and the significant volume cluster formed during this rejection. The cluster indicates that buyers were active here, aggressively buying and reversing the price from a downtrend into an uptrend. If the price revisits this level in the future, it is likely to see a reaction, as the buyers who were active here might defend this zone.

There’s also a fair value gap beginning at this level, which aligns with the heavy volume zone, adding strength to the level. All we need to do now is wait for the price to pull back to this level and then take the trade. A similar scenario occurred here in the past with the same setup. Let me show you how it worked out. There was a strong rejection of lower prices with a significant volume cluster, and when I drew a line through it, the price reacted to this level, just as expected. This rejection setup is the same as the one we currently have. The earlier setup has already been tested and is no longer valid for trading, but this one is still fresh and ready to trade. We just need to wait for the pullback.

Now let’s look at another trading idea, this time on EUR/JPY. Here’s a 30-minute chart of EUR/JPY, showing a setup I call the volume accumulation setup. There was a rotation followed by a strong trend. When you see such a pattern, you should use the Volume Profile to analyze the rotation and check if heavy volumes were traded there. In this case, there were indeed heavy volumes, which indicates that sellers were active here, building up short positions before pushing the price downward. This forms a resistance level at 164.48, located at the beginning of the heavy volume zone and also the start of a fair value gap. The fair value gap and the heavy volume zone reinforce each other, signaling that sellers were active in this area. If the price pulls back to this level, there’s a high chance of a reaction, as the sellers might defend this zone. We simply need to wait for the pullback to take the trade.

If you’d like to learn more about Volume Profile trading, visit my website, Trader-Dale.com. Click on the “Trading Course and Tools” section to explore my trading education and custom-made trading indicators. These include the Volume Profile pack, focused on Volume Profile trading; the Order Flow pack, which covers day trading with Order Flow; and the Smart Money pack, which focuses on smart money techniques. You can purchase these packs individually or get them all together at a discounted price.

If you’re interested in trading alongside me and other prop firm traders daily, I recommend checking out the Funded Trader Academy (FTA). There’s a short video on the FTA page that explains everything, and you can book a one-on-one call to see if this service is right for you.

Before wrapping up the video, I’d like to announce the winner of our recent 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 next week’s contest, you can participate by leaving a comment below this video, which I’ll publish on YouTube. Next week, I’ll randomly select a winner for another set of custom indicators. Thank you for watching, and I’ll see you next time. Until then, happy trading!