🎯 Top Volume Profile Levels to Trade This Week on (ES, NQ and USD/JPY)

Hello everyone, it’s Dale here with a new weekly trading ideas video. Many markets opened on Monday with a gap, and I think this is pretty cool because it presents many new trading opportunities. I’m also glad this happened because I can show you a trading strategy that you can use when the market opens with a gap. Let’s check it out.

Today, we are going to cover three trading ideas. The first one will be on the ES, then we’ll cover the NQ, and finally, we’ll take a look at USD/JPY. All these trading ideas will be based on the same strategy.

What you see on your screen is the NinjaTrader 8 platform with my custom-made Volume Profile and VWAP indicators. The chart on your screen is the ES futures for the S&P 500 index. It is a 30-minute time frame, and the level that formed is the support at 5684. This level formed when the market opened with a gap. Let me show you.

The first thing you need to look for with this strategy is that the market needs to open with a gap, as we see here. Next, you need to spot a heavy volume zone behind the gap, like this one from Friday. Then there was the gap, and now the price is moving above it. Now, what you want to see is a pullback. You want to see the price close the gap. Very often, at least in currencies and indices, opening gaps get filled. This is what the strategy is all about – you wait until the gap is filled and then enter from the beginning of the heavy volume zone, which is where you place your trade.

In this case, it is a long position because it was a bullish gap. You wait for the pullback and enter your trade from this level after the market has closed the gap and hit the beginning of the heavy volume zone at 5684.

There is also one more thing that adds strength to this level. If you look at the weekly Volume Profile from the previous week, it shows how the volumes were distributed throughout the entire week. The point of control, meaning the place where the heaviest volumes were traded in the previous week, is located just below our level. This alignment adds strength to the level because when the price moves away from a strong weekly point of control and then returns to it, it often reacts to that level as a support or resistance.

Now, let’s move on to the NQ – the NASDAQ futures. The setup is very similar to the ES. Again, we are looking at a 30-minute chart, and we see a nice opening gap. If I use the Volume Profile, it highlights a clear heavy volume zone formed before the gap. There was a heavy volume zone, then the gap. Now, we wait for the pullback. When the price moves past this area, fills the gap, and hits the heavy volume zone, that is the level to go long.

The level is at 20,150. Just like with the ES, we need to wait for the pullback and then enter the trade from this level. And just like the ES setup, there is a nice confluence here as well. The weekly Volume Profile from the previous week clearly shows the weekly point of control, aligning with our level. So, we have two setups in play – the heavy volume zone and the weekly point of control. Both setups suggest that the price should move up from that level.

Now, let’s look at USD/JPY. The setup here is quite similar, but in this case, we do not have the confluence with the weekly Volume Profile. However, the setup is still solid. Here, we had the opening gap at this point. If I use the Volume Profile over the entire Friday session or just over this specific rotation, it will still point to the same heavy volume zone, which is located at 145.35.

Again, the plan is the same – wait for the pullback, and when the price reaches this level, go long. I really like trading this strategy. Even though gaps are not that common, when they do appear and we have heavy volumes behind them, this strategy has a very good win rate.

Now, if you are interested in learning more about Volume Profile trading, head over to my website at Trader-Dale.com. Click on the “Trading Course and Tools” button to browse my trading education and custom-made indicators. There’s the Volume Profile Pack, Order Flow Pack, VWAP Pack, and Smart Money Pack. You can get them separately, or if you scroll down, there’s a combo pack that includes all these packs at a discounted price.

If you’re interested in trading live with me and other prop traders in a live trading room, click on the FTA button, which stands for Funded Trader Academy. It is essentially a live trading room where we meet every day, and me and other prop traders make sure that you get funded and can make trading your main source of income. There’s a video explaining everything in more detail, and if you’re interested, you can book a one-on-one call where we’ll walk you through the service and help you decide if it’s right for you.

Before I wrap up the video, I’d like to announce the winner of the contest we had last time. The prize was my custom-made Volume Profile and VWAP indicators for the TradingView platform. The name of the winner is displayed on your screen right now, so congratulations!

For those of you who didn’t win, don’t worry – I’m running another contest for next week. To participate, simply leave a comment below this video on YouTube, and next week, I will randomly pick one person to win this set of custom-made indicators.

That’s all for today. Thanks for watching the video, and I look forward to seeing you next time. Until then, happy trading!