🎯 Top Volume Profile Levels to Trade This Week on GBP/USD, USD/JPY & AUD/JPY

Hey everyone, it’s Dale here, and in this video, I’ll show you the strongest Volume Profile levels to trade this week. This time is going to be a little different because we’ll be focusing on swing trades, which means we’ll be looking at daily charts and higher time frames. So, let’s take a look at this.

What we have here is GBP/USD, and we are looking at the daily chart. I’m doing all the swing trade analysis on the daily chart because I can see the bigger picture. So, what I want to show you here is this short right here at 1.3622. This one is based on a strong heavy volume zone, which was formed right here before the start of this sell-off. What this is telling us is that sellers were building up their short positions in here, and afterwards, they pushed the price into this sell-off right here.

Now, what I want to do is wait for the pullback, and if it occurs, then when the price hits this level, go short from there. This is the beginning of the heavy volume zone, right? The beginning of the heavy volume zone, as well as the beginning of a little fair value gap, which we have in here. This is the fair value gap, and the level is exactly at the beginning of it, which is in here.

Right now, we just need to be patient. We need to wait for the pullback. It doesn’t need to be this week. It could be next week. It could be next month. But when the price reaches this place, I’ll go short from there. I already have a limit order, so I don’t miss this.

Since this is a swing trade, we also need to think about how we place the stop and take profit according to that. So, we need to let the trade breathe because this is a swing trade. What I have is a stop loss right here. The main rule for stop-loss placement is to always place it behind the heavy volume zone, like behind this heavy volume zone. Also, if possible, place it above a swing high like this. Okay, so this will be the stop.

Regarding the take profit, it needs to be at least a risk-reward ratio of one. So, at least somewhere in here. But I’ll be aiming for more, depending on how the volume looks and depending on how the price action looks at the time of the pullback. But the take profit should be at least a risk-reward ratio of one. Okay, so yeah, that’s for GBP/USD.

Let’s now check out the next trading idea. That one will be on USD/JPY. So, here is a daily chart of USD/JPY. What you can see here are those big intervention sell-offs, and I want to trade from the beginning of the second sell-off, the beginning of this one. And the reason is that there were rather heavy volumes accumulated before that sell-off. See those volumes? Those volumes are telling me that sellers were accumulating their shorts here. Afterwards, they pushed the price downwards. The logic is the same as on GBP/USD.

Now, I wait for the pullback. When the price reaches this heavy volume zone, then I go short from there, as the sellers from here are likely to defend this place and push the price downwards from there. Again, the reason I have the level here is because it is also a yearly Point of Control. If you check out this Volume Profile on the left, this is a cumulative profile that shows how volumes were distributed throughout the whole year. Right here, this is the place where the volumes were the heaviest. That’s the yearly Point of Control. A very, very important place. And from there, a strong sell-off started. So that’s why I’m waiting for the pullback, and that’s why I want to trade from that Point of Control.

If you take a closer look here, you can see that there’s also a fair value gap here. It’s possible that the market will want to close the fair value gap, so it might even go a little bit above my level. I’m okay with that because my stop will be right here. This will be the stop, which is behind the volumes and above the swing high. So that’s why I have the stop here. So even if the price goes above my level, fills the gap, and then reacts, I’m okay with that. Okay?

And regarding the take profit, it should also be, as in the previous case, at least a risk-reward ratio of one. So if you enter the trade here, then the take profit should be at least somewhere in here. Ideally more, ideally more. What I usually aim for is a risk-reward ratio of 1.5 to 2. I found out that this is more or less the sweet spot for my swing trading. So I aim for this, but the minimum risk-reward ratio should be at least one. Okay, so yeah, that’s USD/JPY.

Let’s now take a look at the next one. The next one will be AUD/JPY. So here we have a daily chart of AUD/JPY. And this one also got hit by the intervention, and we see this massive sell-off here. Before that sell-off, if you use my Flexible Profile like this, you can see that there was a heavy volume cluster here. Heavy volumes were traded. I should move the profile like this because I’m only interested in this area before the sell-off. So here is the volume cluster where sellers were accumulating their shorts. Afterwards, boom, this manipulation.

So now I want to wait for the pullback. And again, it doesn’t matter if it’s today, tomorrow, next week, or next month. I don’t care. I have a limit order. If the price hits this level, I’ll go short because I expect that the sellers in here, the strong sellers who initiated this strong sell-off, will want to defend this place because I think this is an important place for them. Just look at the volumes. They’ll want to push the price downwards from there, right? So that’s why I want to go short from there as well. The level is exactly at 114.18.

And if you look closely, then you can see that there is a fair value gap here. The fair value gap begins in here, exactly at that level. All right? Right. So I have a level at the beginning of the fair value gap, as well as at the beginning of this volume cluster, right? This is how I generally like to place my trade entries: at the beginning of a fair value gap, as well as at the beginning of a heavy volume cluster. Ideally, when those two align like here.

Regarding the stop, it will go behind the heavy volume zone and also behind this swing high. So it will be in here, exactly at the swing high. That’s the stop, and the take profit, as usual, should be at least a risk-reward ratio of one or more.

Okay. All right, guys, so that’s about it. I hope you liked the video. If you want to learn my whole Volume Profile strategy from A to Z, then you want to visit my website, which is trader-dale.com. And if you click this button, which says “Trading Course and Tools” it will bring you to a page where you can check out my trading education and custom-made tools.

All right, so thanks for watching. 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 I’ll do 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.