🎯 Top Volume Profile Levels to Trade This Week – 9th 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 the ES, which is the futures contract for the S&P 500. This is a 30-minute chart.

The first trading level I’d like to talk about is this support, which formed on Friday. The support is at 6086. Now, this support is a bit different from what I usually trade because it is not based on volumes. If I show you the Volume Profile—let me just use it over the whole of Friday—you can see that the volumes formed before the level are not really significant. There were very weak volumes here, so the level is not based on volumes. Instead, it is based on a rotation followed by macro news. Specifically, it was the NFP macro news, which caused this very strong volatility. The volatility started from this rotation and took out all the liquidity below it with this candle—essentially, a false breakout. Then, boom—the price went aggressively upwards.

I want to trade the aggressiveness of the buyers here. As you can see, they formed this Fair Value Gap, which is a concept from Smart Money trading. I like to trade from the bottom of the Fair Value Gap in a long trade scenario, which is this line. So, that’s our level, based on the Fair Value Gap and the aggression of the buyers here. Additionally, this level aligns with the overall uptrend on the ES. As you can see, we are in a strong uptrend, and that’s why I prefer long trades here. This long trade aligns with that trend. I’m currently waiting for the price to hit this level, and then I’ll go long from there.

Let’s move forward and check out the next trading idea. This one is on the EUR/USD. This is a 30-minute chart of the EUR/USD. On Friday, my short level, which was here, got hit. The same macro news I mentioned earlier—NFP—caused the reaction here. By the way, the level was based on these volumes, and there was a beautiful reaction to it. Unfortunately, I didn’t take that trade because I don’t trade during macro news events, but the reaction was there, and it was nice. Actually, my level was a little bit higher than shown here, but the new level you see is updated. Let me explain the reasoning behind it.

Looking at the price action, there was a sharp reaction to my original level during the macro news. If you use the Volume Profile to analyze that rejection, you’ll see a volume bump within the rejection, very close to the high where the price actually turned. This heavy volume bump tells us that sellers were active here. Buyers initially pushed the price up, but then sellers began jumping in, especially at this volume bump. They then rejected the higher prices. The most important place in this rejection zone isn’t the high but the heavy volume zone, where most of the volumes were accumulated before the shift from buying to selling. My level is set at the beginning of that heavy volume zone, which is at 1.0614. If there’s a pullback, chances are that there will be a reaction because the sellers from this area will want to defend it and push the price down again.

Now let’s switch to the GBP/USD, where we have a very similar level. This is a 30-minute chart of the GBP/USD. Here, we see a strong rejection of higher prices, which was a reaction to a heavy volume zone. If I draw a line here, you can see the reaction to this zone. What’s interesting is that this heavy volume zone is about a month old, but markets have a great memory, and they react to old levels like this. Zooming in on the rejection, you can see another heavy volume zone within the rejection, similar to the EUR/USD. Buyers pushed the price upward, then during the macro news, sellers jumped in at these heavy volume zones, reversing the price. Again, the most important places are these heavy volume zones.

For my level, I chose the lower of the two heavy volume zones because it has more significant volumes. The level is at 1.12793. If there’s a pullback, there’s a good chance this level will be defended, and the price will move downward from there. If you decide to trade this, you should place your stop here, above the second volume cluster, to give the trade room to breathe. This way, even if the price tests the second volume cluster, you’ll still be in your trade and in a short position.

If you’re interested in learning more about Volume Profile trading, head over to my website at trader-dale.com. Click the “Trading Course and Tools” button to browse my best educational resources and indicator packs. There’s the Volume Profile pack, which focuses on Volume Profile trading, and below that, the Order Flow pack, which teaches everything about day trading with Order Flow and provides my custom-made Order Flow and Volume Profile indicators. If you’re interested in both, you can get them together at a significant discount at the bottom of the page.

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. Right now, you’ll see the winner’s name on the screen. Congratulations to the winner! I’m starting a new contest for next week. To participate, just leave a comment below this video, which I’ll publish on YouTube. Next week, I’ll randomly pick one person to win this set of custom-made indicators.

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