🎯 Top Volume Profile Levels to Trade This Week on ES, EUR/USD & GBP/USD

Hey everyone, it’s Dale here. Welcome to the new weekly trading ideas video. Now, I’m shooting this Friday evening because I won’t be home on Monday morning, so I’m doing this a little bit in advance. But you know, I don’t think the market will move too much until Monday morning, so I believe the levels I’m going to show you will still be intact — they’ll still be active and good to trade.

So let’s take a look at the chart, shall we? The first chart I want to cover is the ES, then we’ll talk about EUR/USD, and then the GBP/USD

Before you is the NinjaTrader 8 platform with my custom-made Volume Profile and VWAP indicators. The chart before you is a 30-minute chart of the ES — that’s futures for the Standard & Poor’s 500 index. What I want to talk about here is a resistance, which formed right here at 5989. This one is based on a strong rejection of high prices. As you can see, on Thursday, there was very aggressive buying activity, and then sellers jumped in and initiated a new selling activity.

This is a strong rejection of higher prices. When there is a rejection like this, you want to look into how the volumes are distributed. Ideally, you want to see a heavy volume bump around the place where the price turned from buying to selling. You want to pinpoint that place because it’s usually an important resistance zone.

If I use the profile like this over the rejection area, you can see there is this heavy volume zone. This shows us the place where sellers started to sell — they were selling and selling, and then they initiated this new downtrend. The level I have here is roughly the beginning of that heavy volume zone, and it’s also, as you can see, the beginning of a fair value gap.

Now, this software I’m using automatically highlights fair value gaps in red and green. This is a bearish fair value gap, and I like to trade from the beginning of the fair value gaps, which is right here. This is the beginning of the bearish fair value gap — that’s where my level is, and that’s also where the beginning of the heavy volume zone starts.

So this is a strong resistance to trade from. Right now, I just need a pullback, and when the price reaches this place, I’ll go short from there. This is a strong resistance, because the sellers from here are likely to defend this place when the price pulls back, and then push the price downward from that place again.

So that’s the plan for the ES.

Now, let me talk a bit about EUR/USD. What you see before you is the EUR/USD 30-minute chart. I have two support levels here: one at 1.1289 and another at 1.1246. Both of these strong levels are based on the buying activity that took place on Thursday. As you can see, there was a pretty strong downtrend, but then buyers started to buy, and you can see that nicely on the Volume Profile — this heavy volume zone here.

They started to push the price higher, and you can see additional volumes being placed in this area. Those buyers were adding to their long positions and pushing the price higher and higher, rejecting the lower prices. These two heavy volume zones represent places the buyers should defend, because they were active there in the past. That means these levels are likely to be important for them in the future.

The levels are at the beginnings of the heavy volume zones. This one is at the beginning of this heavy volume zone. The other one — well, this one is actually not at the beginning of a heavy volume zone, but in this case, it’s the beginning of a fair value gap. It’s a bullish fair value gap, highlighted in green. As I said, I like to trade from the beginnings of fair value gaps, and in this case, that’s right here — the level at 1.1246. That’s why I placed the level exactly there.

The level before that is the beginning of the heavy volume zone. It’s also the first deviation of the weekly VWAP, which makes a nice confluence with that Volume Profile level.

So what I want to see now is a pullback–reaction. Pullback–reaction — that’s the ideal scenario. Right now, we just need to wait. If those pullbacks occur, then we can trade from those two levels. Chances are there will be nice reactions.

So that’s for the euro. The next thing I want to talk about is the British pound.

This is the GBP/USD 30-minute chart. Here, we also had a downtrend. Then buyers stepped in and started a new uptrend — or at least this was aggressive buying activity. Right now, it doesn’t look like a strong uptrend; it’s more like a rotation. But this is definitely where aggressive buyers pushed the price upwards.

Let me now show you how the volumes are distributed in this area where my level is. If I show you like this, you can see that there’s a heavy volume zone representing buyers jumping in. Sellers were pushing the price downwards, and then buyers started to jump in — they were buying everything the sellers had to sell. That’s why the price stopped moving down and then went upwards.

This represents strong buyers, and those buyers should defend this place in the future as well. So when the price makes a pullback, chances are the buyers will step in and push the price upwards from there again.

As you can see, this level is also at the beginning of a fair value gap. This is the fair value gap zone, and the beginning of the fair value gap — the place from which I like to trade — is right here at our level, which is at 1.3437.

All right, so that’s the plan for the British pound. Right now, we just need to wait for that pullback, and if it occurs, then take it from there.

Now, if you guys are interested in trading with me and other prop firm traders in the live trading room every day, then I recommend visiting my website, which is trader-dale.com. This is it. If you click the button that says FTA — that stands for Funded Trader Academy — it’ll take you to a page with a video where I explain everything in more detail. If you like it and would like to join us, then book a one-on-one call there. We’ll walk you through the service, and then you can decide whether or not it’s right for you.

Before I wrap the video up, I’d like to announce the winner of the contest we had last time. The prize for the contest was my custom-made Volume Profile and VWAP indicators for the TradingView platform. Right now, on your screen, you see the name of the person who won the contest — congratulations to the winner!

What I’ll do next is another contest for next week. The only thing you need to do to participate is 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.

So that’s about that. Thanks for watching the video, and I’ll be looking forward to seeing you next time. Until then — happy trading!