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Video Transcript:
Hey everyone, it’s Dale here, and in
this video, I want to show you some of the strongest Volume Profile levels to
trade this week. Let’s get to it.
What you see here is the TradingView
platform, and you’re looking at EUR/USD. Let me show you a level that I
want to trade here. It’s a long level at 1.1172. Now, the reason for
this is, let me show you. There was a level that I was trading. It was a short
level here, and that short level was based on this volume cluster because I saw
that the price was dropping like this, and I saw this volume cluster. I thought
that the sellers would want to defend it. So, I was waiting for the pullback,
and a couple of moments ago, the price hit that level, and I went short from
there. As you can see, the price did not react there. It went straight through
that level, and I got stopped out. When something like this happens, when
there’s a strong Volume Profile level and the price does not respect it but
just shoots past it, that gives me a signal. In this case, buyers are
dominating this market because they’re not respecting a strong resistance,
right? So, buyers are dominating here. That means I should join them.
What very often happens is that if
you have a level like this, like the resistance that I had here, and the price
shoots past it with no reaction at all, there is often a pullback to that
level. Then, the market reacts to that same level but from the other side, like
this. So, that’s the plan. I plan to go long from this level at 1.1172. I call
this a reversal trade because first, I went short, but that did not work, and
now I want to go long from the exact same level just because the price did not
respect that very strong level. I’ve been trading like this for years. Those
reversals work wonders. So, yeah, now I’m waiting for that same level to get
hit from the other side, and I’ll go long from there. Let’s see how it goes.
So, that’s it for EUR/USD. Let’s now
switch over to AUD/USD.
On the AUD/USD 30-minute chart, I
want to talk about this strong sell-off, and within that sell-off, there was a
significant volume cluster. In this case, it was this volume cluster, which
represents the place where sellers were active as the price was dropping. Those
sellers were adding to their short positions here. And now, the price is
rotating below that heavy volume zone and below the resistance that this heavy
volume zone created. Here is that resistance at 0.6925.
What I like about this level is,
first, the volume cluster. That’s the most important thing. As you can see,
this is the place where the Volume Profile was the widest. The volume cluster
was the heaviest in here, right, within this downtrend. So, that’s one thing.
Also, we have the start of a strong sell-off from this place. See, there is a Fair
Value Gap in here and another Fair Value Gap in here. When they are stacked
like this, I look at it as if it were one big Fair Value Gap. By the way, there
was another one in here, which is now partly filled, but you can still look at
it as if it were one big Fair Value Gap beginning exactly at our level, right?
So, that adds strength to that level because the start of that big impulse, the
selling impulse, is right here at our level, and it corresponds with the
beginning of that volume cluster. Okay, so that’s why I like this level. That’s
why I want to go short from there. Now, I’m waiting for a pullback, and if the
price hits this level, I’ll go short from there. Okay, and if, for some reason,
the price just shoots past that level, I’ll do the same thing as I did on
EUR/USD. If there’s no reaction to the level at all, I’ll trade it from the
other side. That means I’ll go long from here. Okay, and hopefully, we’ll see a
reaction like this. So, that’s the plan for AUD/USD.
Let me now switch over to USD/CAD.
So, here is USD/CAD. In here, there
is a strong uptrend, and I’ll do the same thing as I’ve done on AUD/USD. That
means I’ll look into the uptrend area and see how the volumes were distributed
here. See this volume cluster? That’s what I want to trade. It’s the same thing
as I was showing you on AUD/USD: a significant volume cluster that’s within a
trend. Okay? In this case, our level is at 1.4069. That’s right here,
and it’s based on two things. First, and most importantly, the heavy volume
zone, representing a place where buyers were active as the price was going up.
The second thing is a large Fair Value Gap right here. A big Fair Value Gap beginning
right here, exactly at our level. I actually use the beginning of the Fair
Value Gap to pinpoint the exact place where to place that level, right?
So, more or less, we have an
alignment of that heavy volume zone. I mean, the beginning of the heavy volume
zone is somewhere in here. A little bit below that is the beginning of the Fair
Value Gap. I place the level at the beginning of the Fair Value Gap because, in
my experience, the markets tend to fill the gaps and then react. Okay, so it’s
going to be a long trade from there, based on those two setups: the Fair Value
Gap and the volume cluster.
All right, so that’s about it. I hope
you guys like the video. If you want to learn more about Volume Profile trading
and if you want to get your hands on my custom-made indicators, head over to my
website, which is trader-dale.com.
If you click on “Courses
and Tools” it will take you to a page where you can browse my trading
courses and my custom-made trading tools. You can get them in four separate
packs, or scroll down a bit and get one pack that includes all four of them.
All right, so thanks for watching the
video, and see you next time. Until then, happy trading!
Now, before I wrap up the video, 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 can see the name of
the person who won the contest. So, congratulations to the winner!
What I’ll do next is hold another
contest for next week. The only thing you need to do to participate in this
contest 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 it. Thanks for
watching the video, and I’ll be looking forward to seeing you next time. Until
then, happy trading!