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Video Transcript:
Hey everyone, it’s Dale here with the strongest Volume Profile levels to trade this week. Today is going to be quite interesting because we’ll be talking about AUD/USD. We’ll be talking about Gold and about a strong swing level on EUR/USD. So, let’s get to it.
Let’s start with AUD/USD. So what you see here is a 30-minute chart of AUD/USD, and there was a rather strong downtrend right here. And when there is a downtrend, or any trend, I like to look for significant volume clusters within the trend. So I use my flexible Volume Profile like this, and I look for significant volume zones. And a significant volume zone doesn’t mean that I’m looking for the strongest Volume Profile zones, like, for example, this one or this one. But in this case, I’m actually most interested in trading this one. And let me show you why. There are a couple of reasons behind the level that I have here, behind this resistance at 0.7189. Reason number one is, as usual, this significant volume cluster, right? Volumes are always the most important thing for me. So there needs to be some kind of volume. It doesn’t need to be the heaviest volume cluster, but there needs to be at least something. Okay. So we have this volume cluster here, formed within this downtrend area. But the reason why I like this level is that there are a couple of confluences here. As you can see on the chart, I highlighted in red two Fair Value Gaps. This one, and below that, another one. Fair Value Gaps are from Smart Money Concepts, and I like to combine them with Volume Profile. When the Fair Value Gaps are on top of each other like this, I look at it as if this was one big Fair Value Gap beginning here at our level, at this heavy volume zone. And that’s the thing that is important, and that’s why I like this level so much. Okay? Because we have a combo of a heavy volume cluster as well as the beginning of the Fair Value Gap. So in a short trade scenario like this one, I like to trade from the beginning of the Fair Value Gap, which is here. So essentially, I wait for a pullback and go short from there. Right now, you can also notice that the first deviation of the weekly VWAP ended its calculation on Friday here. So this also adds a little bit of strength to the level, but at least something. All right. So as I was saying, now I just need to wait for the pullback, and if it occurs, then it will be short from there, from 0.7189. I believe that sellers who were active here will become active again and push the price downwards from this level again. All right. So that’s for AUD/USD, and let’s now take a look at the chart of gold.
So this is a 30-minute chart of Gold Futures, and the level that I want to talk about is a support here, and the support is at 4570. It is nicely visible on this weekly profile, which shows how the volumes were distributed throughout the whole week. As you can see, there was a rather significant volume cluster visible here. You can also use my flexible profile to find this level. See, it stands out nicely. And the reason why this volume cluster is that important is that a strong uptrend starts from there. So it seems that buyers were building up their long positions here, and then they manipulated the price into this uptrend, right? And the buyers should be active here at this level when the price makes a pullback to that level in the future. Okay? So if there’s a pullback to 4570, I expect buyers to jump in again and defend this place, which was clearly important for them in the past, right? Because we see those heavy volumes which they placed here in the past. Again, this heavy volume cluster is important not only because of the volumes that stand out nicely, but also because of this strong trend activity starting from there. Also, you can notice we have a little Fair Value Gap here, adding to the strength of that level and of this steep uptrend here. Okay, so that’s for that support on gold. Right now, we just need to wait. Just be careful if there’s any news, because, you know, gold kind of overreacts to some news. And if there’s news when the price is near the level, then just wait and trade it only after the news. All right. But if there’s no news, then I believe that this level will hold, and it will be a nice support to trade from. All right. So, that’s gold.
Now, what I want to show you is also a swing level on EUR/USD. So let me now switch over to my swing trading layout. And this is it. This is my swing trading layout, and it is a daily chart. I do all my swing trading on daily charts, and you’re looking at EUR/USD. So what I’m looking to trade here is this level. It is a strong support at 1.1571. Let me show you the reasoning behind this support. If you use the flexible profile like this, then it will show you this heavy volume zone. You can also use the profile a bit differently and look into this whole zone, this whole area like this. It will also show you heavy volume activity here. And this heavy volume activity is important because strong buying started from there. See this area? So this is a setup which I call the Volume Accumulation Setup because heavy volumes were accumulated here, and from there, strong buying activity started. So that’s manipulation by buyers who were building their long positions here. Now the price is making it back to this level, and when it hits this level, then I think that the buyers will become active again and push the price up. The level is at 1.1571. I already have a limit order here. So when the price touches this level, then I’m going to go long from there. Apart from this heavy volume area and Volume Profile setup, there’s also another thing that adds strength to that level. Actually, two things. The first thing is that there is this Fair Value Gap here and this bigger Fair Value Gap here. As I said, when the Fair Value Gaps are on top of each other, I look at it as one big Fair Value Gap. So we have a Fair Value Gap. In a bullish scenario, I trade from the beginning of the Fair Value Gap like this. Okay. So in a bullish scenario, this is the support for me in the Fair Value Gap. As you can see, it also aligns with the heavy volume zone. It is more or less where the volumes are the heaviest. And one last thing that adds strength to this level is the first deviation of VWAP. See this gray line? That’s the first deviation of VWAP. When the price is rotating, those two deviations go sideways like this. And price likes to react to those deviations like it did here. And hopefully, it will do the same here. All right. So Volume Profile setup, Fair Value Gaps, and the first deviation of VWAP. Three setups all confirming this long level.
Now, when trading this, don’t forget that this is a daily chart. So you need to let the trade breathe. Okay? This is a swing trade. So if you enter the trade here, then my stop will be at this level at 1.15, which is around 70 pips or 65 pips, and the take profit should be at least here, which is at risk-reward ratio one, but ideally more. But at least trade this with risk-reward one. So at least the take profit should be at 1.1637.
Now, if you guys are interested in learning more about Volume Profile trading, then I suggest you visit my website. It is at trader-dale.com, and if you click this button, Trading Course and Tools, then there you can get my custom-made Volume Profile indicators as well as complete A-to-Z Volume Profile trading. As you can see on this banner here, we are currently running a 55% sale, so you can get this even cheaper now. All right, so that’s about that. Thanks for watching the video, and I’ll see you next time. Until then, happy trading.
Now, before I wrap the video up, I’d like to announce the winner of a contest we had last time. The prize of the contest was my custom-made Volume Profile and VWAP indicators for the TradingView platform. And right now on your screen, you see the name of the person who won the contest. So congratulations to the winner. And what I’ll do next is I’ll do another contest for next week. The only thing that you need to do to participate in this contest is leave a comment below this video, which I’ll publish on YouTube. And next week, I’ll randomly pick one person to win this set of custom-made indicators. So that’s about that. Thanks for watching the video, and I’ll be looking forward to seeing you next time. And until then, happy trading.
