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Video Transcript:
Hello everyone, it’s Dale here, and
in this video I’ll show you the strongest Volume Profile levels to trade this
week. What you see before you is the TradingView platform, and the chart is EUR/USD
on the 30-minute time frame. I want to show you a short level here. This short
level is based on this sell-off, which took place on Wednesday because there
was the FOMC macro news. That’s very, very strong macro news directly related
to the strength of the US dollar, so it’s very, very important news. And the
level that I want to show you here is this short at 1.1531. The reason
why I think that this is a strong level to go short from is because—let me show
you the Volume Profile here—there was this heavy volume zone right before the
sell-off. And when you see heavy volumes like this before strong trend
activity, in this case it means sellers were accumulating their short
positions. They were accumulating those in here, in this little rotation before
the start of the sell-off, before the start of the FOMC macro news. Right? So
what I want to do next is wait for the pullback, and when the price hits this
level at 1.1531, I’ll go short from there. It is at the beginning of that heavy
volume zone. Right at the top of this heavy volume zone, there is also the
beginning of a huge fair
value gap. This is the fair value gap from Smart Money Concepts, and
because this is a bearish scenario, the beginning of the fair value gap is
right here. This is the beginning of the fair value gap for me. Right? So two
things align: the beginning of the heavy volume zone and the beginning of the
fair value gap right here at this level. So when the price reaches this level,
I’ll go short from there like this because the sellers who were active here,
who placed those volumes here, should defend this place because this place
should be important for them. That’s why they placed those volumes there. So
that’s why the price should drop from there. Okay, this is a Volume Profile
setup that I call the Volume Accumulation Setup. And I’ll show you this setup
also on GBP/USD because there is a very, very similar setup there. So let’s go
over to GBP/USD.
And here the price action looks very,
very similar because we have a strong sell-off that happened during the FOMC,
and we have a little rotation before that sell-off, this rotation where the
heavy volumes were traded. Let me show you with the Volume Profile. See, those
are the heavy volumes before the sell-off. So again, this is the Volume
Accumulation Setup because heavy volumes were accumulated before a strong
sell-off. Right? So my level, my short level, is at 1.3441 here. This is the
short level, and it is at the beginning of that heavy volume zone. This is the
beginning of the heavy volume zone as well as the beginning of a fair value
gap. The fair value gap is not part of the Volume Profile setup. It’s a
different, independent setup, but I like to use those together. Right? The
beginning of the fair value gap is in here because this is a bearish fair value
gap, and it nicely aligns with that level at 1.3441. Okay, by the way, I
like to place my levels exactly at the beginnings of the fair value gaps,
especially if they align with the beginning of the heavy volume zone like here.
Okay, so those are the reasons—exactly the same reasons as on EUR/USD—but this
time it’s the same setup and the same reasons, only on GBP/USD. So now I’m
waiting for the pullback, and if the price reaches this place, I’ll go short
from there, as the sellers who were active here should defend this place and
push the price downwards from there again. Okay, so that’s for GBP/USD. Let me
now switch over to USD/JPY.
So on USD/JPY, there is a
very, very similar thing. The only difference is that the price here is going
up. But this is the FOMC reaction, and again, I’ll want to trade this because
there is a strong trend. There is a rotation before that trend, and in that
rotation, heavy volumes were traded. See? So the big guys were getting ready
for the move. They were entering their longs here, and then they pushed the
price up. So what I want to do is wait for the pullback. When the price reaches
this level, this one at 155.15, then I’ll go long from there because the buyers
from here should defend this place, which was important for them in the past.
Now, we also have a fair value gap here, adding strength to that level. The
fair value gap is in here, beginning exactly at our level. Because this is a
bullish scenario, this is the beginning of the fair value gap, exactly at our
level at 155.15. Okay, that adds strength to the level. So when there is a
pullback, I’ll go long from there. So again, we have the Volume Accumulation Setup.
Three cases of the same setup in this video. So I hope that this gave you a
nice example of how this setup works and how I use it. I especially like it
when I can combine it with fair value gaps, like in those cases. All right, so
if you guys want to learn more about Volume Profile trading, if you want to get
your hands on my custom-made indicators to trade with, then what I recommend is
visiting my website. It is at trader-dale.com.
And if you click this button, Trading
Course and Tools, it will bring you to a page where you can browse my
trading education and custom-made indicators. All right, so 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 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. Until then, happy
trading.
