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Video Transcript:
Hello
everyone, it’s Dale here. Welcome to the new video from the Weekly Trading
Ideas series. Today, we are going to cover three new trading ideas based on my
Volume Profile setups. We’ll cover a setup on the NQ, then we’ll take a
look at the EUR/USD, and we’ll finish up with a new trading idea on the AUD/USD.
So, let’s now check out the charts.
What
you see before you is the NinjaTrader 8 platform with my custom-made Volume
Profile and VWAP indicators. The chart before you is the NQ, and it’s
the 30-minute chart. What I want to talk about here is this newly formed
support, which formed on Friday—this one at 19,950. If you look at the
NQ—let me scroll back a bit so we can see more of the history—this is basically
a pretty solid uptrend. That means we should be looking only for long trades
right now.
The
way to do that with Volume Profile is to look for heavy volume zones that
formed recently and trade pullbacks to them. Let me zoom in again and show you.
You can use the Volume Profile, for example, like this over the recent uptrend
area. But you know, it doesn’t really matter if you use it like this or look at
the chart like this or like this—it will always point you to the most important
heavy volume zones. In this case, it is this heavy volume zone. This is the
closest heavy volume zone to the current price, and what I want to trade now is
a pullback to it. So what I’ll do is wait for the price to reach this level,
which, as you can see, is at the peak of this heavy volume zone, and go long
from there.
Now,
there’s one more thing about this level that I like. There’s a Fair
Value Gap—it’s highlighted in green. This whole zone is a Fair Value Gap.
That’s from Smart Money Concepts, and my level is at the beginning of the Fair
Value Gap. I like to trade from the beginnings of Fair Value Gaps. At the same
time, we still have that high-volume zone here, so it’s a nice confluence. With
the Fair Value Gap showing us the aggression of buyers here, I think it makes a
pretty nice level to trade from. So what I expect is a reaction from it. I’m
hoping for a pullback, and then it’s long from there.
Alright,
that’s for the NQ. Let’s now check out the next trading idea, which is
on the EUR/USD. Here we have a 30-minute chart of the euro. I’ve zoomed
this out because I wanted to show you the whole structure and what was
happening here on the euro recently. In this area, we had an uptrend, then a
little rotation—which means this price level got accepted—then a rejection of
higher prices. That’s a sign of strong sellers after a very long time, because
for a very long time, there had been a strong uptrend. But after that, we have
a sign of sellers—this strong rejection.
Afterwards,
we had a rotation again at the same place as here. It looks like the market has
accepted this price zone as a sort of fair price zone. What happened next—and
this is important—is the price went out of this zone, tested that zone, tested
this heavy volume zone in that rotation area, and rejected the higher prices
again. Sellers. That’s a sign of sellers. A strong rejection of higher prices
is a sign of sellers.
Now
I want to trade this rejection. Let me zoom in a bit and focus on that most
recent rejection—this one. This is showing us the aggressivity of sellers. Let
me use the Volume Profile to show you how volumes were distributed within that
rejection. The most important thing to notice here is this heavy volume
cluster, which formed right before the price turned from buying into this
aggressive selling. This tells us that sellers were aggressive here—they
started to jump in and reversed the price from this buying into selling. So
this is the most important place in that rejection: the heavy volume cluster
very close to where the price actually turned.
The
beginning of this heavy volume cluster is now an important place for the
sellers. If there’s a pullback, it’s likely that the sellers will want to
defend this place, which is clearly important to them because of the volumes
they placed here. So they’re likely to push the price downwards from there
again. That’s why I want to enter my short here at this level, which is at 1.1360.
Again, there’s a Fair Value Gap—beginning of a Fair Value Gap. It’s highlighted
in red, and the beginning of the Fair Value Gap is right here—that’s where my
level is. So the plan is: wait for the pullback, and if the pullback occurs,
then go short from there.
Now
let’s check out the next trading idea, which is on the AUD/USD. This is
the AUD/USD, and again, let’s start with a bigger picture. What we have
here is a rotation followed by a breakout. Because of this, I’m interested in
entering a long trade—and one of them is right here, a long at 0.6447.
Let
me show you what happened here. If I zoom in a bit so you can see it better and
use the Volume Profile, it shows a significant volume zone at this place—in
this little rotation within this uptrend zone. When you have a heavy volume
zone within an uptrend, that means buyers were active here, adding to long
positions. That means this place is important for the buyers. If there’s a
pullback to this place, the buyers are likely to defend it and push the price
upward.
If I
zoom out a bit again, then the level I marked here—this one at 0.6447—if
I extend this line, you can see that it was also a very important level in the
past. It worked as a resistance because the price made a very strong reaction
to it. Now this resistance has turned into support, because the price went past
that level and is now moving above it. So the resistance turned into
support—and this is our support. Our support that we identified using the
Volume Profile.
So
that’s a nice little combo of two trading setups. On top of that, there’s also
the Fair Value Gap. Our level is at the beginning of the Fair Value Gap. The
Fair Value Gap isn’t my invention—that’s from Smart Money Concepts—but I like
to combine it with my Volume Profile setups like this one. Volume Profile setup
marked by this heavy volume zone, and the beginning of a Fair Value Gap—it’s a
nice setup to trade.
So yeah, those are the three
trading ideas I wanted to share with you guys. If you’d like to join me and
trade with me every day, then I recommend visiting my website: trader-dale.com. If you click this
button “FTA“—it
stands for Funded Trader Academy—it will take you to the page where I explain
everything in detail about the Funded Trader Academy and how you can trade with
me and other prop firm traders every day in a live trading room. If you’re
interested, you can book a one-on-one call there. We’ll walk you through the
service, show you all the details, and then you can decide whether or not this
is right for you.
And
if you’re more into self-study and just want to get your hands on my
custom-made Volume Profile, Order Flow, or VWAP indicators, then click the
button “Trading
Course and Tools” This is more of a self-study option, so you won’t be in
the live trading room with me every day, but you’ll still get my day trading
and swing trading levels every day, along with my indicators and video courses.
If this is something you’re more interested in, you can get it there. These are
my educational and indicator packs: Volume Profile Pack, Order Flow Pack, VWAP
Pack, and Smart Money Pack. You can get them separately, or if you scroll down
a bit, you can buy all four together as one big discounted bundle.
Alright,
before I wrap the video up, I’d like to announce the winner of the contest we
held last time. The prize 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—congratulations to the winner!
What
I’ll do next is run another contest for next week. The only thing you need to
do to participate 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.
That’s about it—thanks for watching the video, and I’ll be looking forward to seeing you next time. Until then, happy trading!
