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

Hello everyone, it’s Dale here. In this video, I’ll show you the strongest volume profile levels to trade this week. We will take a look at the ES, the NQ, and also the USD/JPY. So, let’s take a look at it. What you see before you, this is the NinjaTrader 8 platform with my custom-made volume profile and VWAP indicators. And this is a 30-minute chart of the ES. And on the ES, there was quite an interesting thing, and the thing is that it opened with a gap. Well, actually, this is common for the ES, NQ, and USD/JPY. They all opened with an opening gap like this one.

And that brings me to the setup which I want to show you. The first step of the setup is that gap, right? The market needs to open with a gap. It’s quite rare with forex, and indices like the ES or the NQ, but when it happens, then you have a very nice setup. So, the first step is the gap. The second step is that you need to identify a heavy volume zone before the gap, like this. It’s ideal to use a flexible volume profile which you can move around like this. Look into specific areas like this one. So, as I was saying, you identify that heavy volume zone here, and then you want to trade from the beginning of that heavy volume zone. So, you wait for the pullback. In this case, the beginning of that heavy volume zone is at 6,976.

And from there, the price is likely to bounce like this. All right. All right, so it’s a short from here. And there’s also one thing that adds strength to this level, apart from this heavy volume zone. And the thing is that, as you can see in here, the price bounced off that level already in the past. That means that it was a support. When the price went past the support in here with the market open, that support turned into a resistance, right? So, as you can see, that nicely aligns with our volume profile level, which is also here at the beginning of that heavy volume zone. Right, so when the price reaches this place, it’s likely that there’ll be a reaction, as the sellers from here are likely to become active again, right?

So that’s that setup on the ES. Now let me go to the NQ. On the NQ, we have the same thing as on the ES. We have a rather big opening gap, and those gaps, they tend to get filled rather sooner than later. That’s why I’m trading from the beginning of the gap. So, we have a gap. Then again, I’ll use my flexible profile to look into the volumes here, and I want to see this heavy volume zone before the gap, right? So, we have that heavy volume zone, and as on the ES, we want to see a pullback to the level, to the beginning of that heavy volume zone. In this case, on the NQ, it’s at 25,675.

And from there, the price should react like this. Okay, the same thing as on the ES. And again, we have that beautiful confluence with this price action setup, saying that here was a support in the past, which turned into a resistance as the price blew past that support. So this is the resistance, and again, it’s at the same place as the beginning of the heavy volume zone. So it nicely aligns with our short level. Okay, so what we need to do now is just wait for the pullback, and if it occurs, then go short from there.

Now let me go to the USD/JPY. On the USD/JPY, we also have a gap. Not such a huge gap, but still, there is a gap which hasn’t been filled yet. And those gaps get filled rather sooner than later. So what I expect is that they’ll close it today. I would be surprised if they didn’t. And so we have that gap here. That’s the first step. And the second one is to identify the heavy volume zone. So you use the profile like this, and here is your heavy volume zone, right? So this level is the beginning of that gap, also more or less the beginning of that heavy volume zone. The level is at 158.05.

And when the price reaches this level, then it should be a short from there. The price is likely to react there. By the way, you can also notice that there were a couple of reactions to this level in the past, or not exactly to the level, but to this general area: here, and here, and here, and also a little one in here. So in the past, this seems to be a strong support because the price was reacting around it, and now the price is below that support. That means that it turned into a resistance. All right, so again, we have a combo of a volume profile setup and a price action setup, right? So what we need to do now is just wait for the pullback and take that short from there.

Now, one thing that I forgot to mention is that the ES and the NQ, they correlate quite heavily. So what you might consider is that if the price reaches this level on the NQ, and at the same time the same level on the ES, then you might consider using a smaller trading position, because you don’t want to expose yourself to a double risk, basically, right? Because the ES and the NQ are heavily correlated, so it’s likely that if this trade is going to be a loser, it’s going to be a loser on both ES and NQ. On the other hand, it could be a winner, and you could have a winner on the ES and the NQ. But, you know, if you want to be safe, rather than trading a risky scenario, then you might want to lower your trading position. But that’s only if the price reaches the same level on the ES and NQ at the same time.

Now, if you guys are interested in learning more about volume profile trading and getting your hands on my custom indicators, then head over to my website. It is at trader-dale.com. And if you click this button, Trading Courses and Tools, then it’ll bring you to this page where you can browse my trading education packs. In here is the Volume Profile Pack, Order Flow Pack, VWAP Pack, and Smart Money Pack. You can get those separately in here, or scroll down a bit, and here you can get all those four packs in one huge bundle.

Now, before I wrap the video up, I’d like to announce a 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 another contest for the 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.