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Video Transcript:
Hello everyone, it’s Dale here. In this video, I’ll show you the strongest Volume Profile levels to trade this week. Now, let’s first start with the macro calendar because this week is going to be rather heavy on macro news. What I have here is Forex Factory, and this screen which you see here only shows the high-impact macro news. As you can see, there are so many of them, and many of them are very, very strong macro events that directly affect currency rates. So just a quick rundown before we check out the charts, okay? Because this is important. Tomorrow, on Tuesday, there is the cash rate announcement for AUD/USD. On Wednesday, there is the rate decision for USD/CAD. Wednesday is also FOMC day, which is very, very important. On Thursday, the Bank of Japan announces their policy rate. Then there is the Swiss franc policy rate decision, and then there is the British pound with the official bank rate announcement. On the euro, we also have rate decision news. So as you can see, this week is very heavy as far as macro news is concerned. So be very careful with your trading. There is no shame in skipping trading for the whole week. Now let’s check out the charts. Let me show you a couple of strong Volume Profile levels.
Let’s start with EUR/USD. Here is a 30-minute chart of EUR/USD. The platform is NinjaTrader 8 with my custom-made Volume Profile and VWAP indicators. Here I want to show you a strong support at 1.1453. At first I didn’t really believe in this support, but then I saw the strength with which buyers were pushing the price upwards, and I realized that it was not just a rotation after a strong downtrend, but it could actually be strong buying activity, possibly from institutional buyers. So back to the level that we have here at 1.1453. If I use Volume Profile over this recent uptrend, you can see that there is this volume cluster here. This volume cluster possibly represents a place where buyers were active when they were pushing the price upwards. Here is the beginning of that volume cluster. That’s our level.
There are a couple of more things regarding this level. Not just the volume cluster, but also a rather large Fair Value Gap. This whole area is a Fair Value Gap, and our level is the beginning of that gap. See, this is the beginning of the Fair Value Gap, which adds strength to that Volume Profile level. On top of that, there is also another thing. In the past, this level worked as a resistance. See how the price reacted to this level. That means that in the past it was resistance. When the price broke past that resistance, it turned into support. So we have the Volume Profile setup, the Fair Value Gap, and the resistance-turning-into-support setup all pointing to this level. That’s why I think it’s worth watching and trading. Right now we just need to wait for the pullback, and when the price hits this level, then go long from there.
Now let’s check out the next pair, which is going to be AUD/USD. Here I want to show you a slightly older level, a couple of days old. It’s a short level at 0.7124. By the way, this is still a 30-minute chart. All of these intraday trading charts are on the 30-minute timeframe. This level is based on a Volume Profile setup which I call the Volume Accumulation Setup. First, you need to see a rotation where heavy volumes were accumulated, like in here. Then there needs to be strong trend activity following that accumulation zone, exactly like here. This is a heavy volume zone from which the sell-off started. That heavy volume zone represents resistance, especially the beginning of that zone. That’s where I have my short level.
So now I’m waiting for the pullback. If it occurs, I’m going to go short from there because I think the sellers who were accumulating their short positions there and then pushed the price downwards will become active again. They will likely want to defend this heavy volume zone again because it is clearly important to them. So they may defend it and push the price downwards from there again. As a small additional factor here, we also have a small Fair Value Gap, which adds a bit more strength to the level.
The last pair is GBP/USD. The level here is a support at 1.3253. It is also based on the Volume Accumulation Setup, only in reverse. In this case we are talking about support. We have a rotation with a heavy volume zone formed there, and then we have a strong trend starting from that heavy volume zone. That’s the Volume Accumulation Setup. The next thing is that you need to wait for a pullback and go long from there. This is where the heaviest volumes begin, which is why I placed the level there.
We also have a Fair Value Gap here, but it is slightly above the level, just a couple of pips higher. I still count it as confirmation of the level because the Fair Value Gap shows the strength and determination of the buyers who were first accumulating long positions here and later pushed the price upwards. By the way, I also have a small resistance level on this chart at 1.3330. This is a smaller level, and I’m not yet fully decided on trading it, but let me show you what I like about it. There is a significant volume cluster here which formed during this strong sell-off. That cluster could represent sellers adding to their short positions.
We also have Fair Value Gaps here, a small one and a bigger one here. When they are close to each other, I count them as one larger Fair Value Gap beginning here. The third thing is that the price reacted to this level in the past, so it previously acted as support. When the price broke below that support, it turned into resistance. So we have several signals aligning here. That means this could potentially become another strong level to trade from.
If you are interested in learning more about Volume Profile and if you want to get your hands on my custom-made Volume Profile software, then head over to my website, trader-dale.com. If you click the button that says “Trading Course and Tools” it will bring you to a page where you can check out my trading education and indicators.
Thanks so much for watching the video. I’ll see you next time, and until then, happy trading. Now, before I wrap the video up, I would like to announce the winner of the contest we had last time. The prize of the contest was my custom-made Volume Profile and VWAP indicators for the TradingView platform. Right now on your screen you can see the name of the person who won the contest. So congratulations to the winner.
Next week I will run another contest. The only thing you need to do to participate is leave a comment below this video on YouTube. Next week I will randomly pick one person who will win this set of custom-made indicators. So that’s it. Thanks again for watching the video, and I’ll be looking forward to seeing you next time. Until then, happy trading.
