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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. Let’s start with the NQ. What you see here is the TradingView platform and a 30-minute chart of the NQ. And what I want to talk about here is a resistance level, this one, at 29,455. By the way, in this video, we’ll specifically focus on trading from the weekly point of control, which brings me to the weekly volume profile here. You can see that in gray on the left side of the chart. Here it is, and it represents how volumes were distributed throughout the whole previous week. The heaviest volumes were here. This is the weekly point of control. What’s important is that from that place, from the weekly point of control, this strong sell-off started. And this is telling us that sellers were active there, not just throughout the whole week, but also before this sell-off. Let me show you with the other volume profile. See? Those volumes show sellers getting ready to manipulate the price and push it downwards. Okay, so that’s important. Sellers were active here and also throughout the whole week. Now, the idea behind what I want to do is that those guys should be defending their short positions once the price touches that area again. So, I’m basically waiting for a pullback. And when the price hits the beginning of that heavy volume zone, which is here, that’s our level. I’ll go short from there because those guys are likely to defend this place, which was important for them in the past and is likely to be important for them in the future as well. So, that’s why I want to go short from this level. All right? And also, it is the weekly point of control. Don’t forget about that. That’s also an important thing that adds strength to that level. Another thing that adds strength to the level is that it is the beginning of a fair value gap. See? Here is a fair value gap. That’s from Smart Money Concepts, and it begins right here at our level, exactly at our level. All right. So, that’s another thing that adds strength to it. One more thing that adds strength to the level is that if I extend this line, you can see that the price reacted there. Here. Here. And also here. And it was not exactly at the level, but here as well. So, that means that this worked as support in the past. And when the price broke that support, it turned into resistance. This is a price action setup, an old price action setup that I like to use as a combo with those other setups, especially with the volume profile setup, this one. All right. So, for all those reasons, I think that there should be a reaction. Now, we simply need to wait. And then, when the price hits this level, we’ll hit the short. All right. So, that’s for the NQ. Let’s now check out the GBP/USD
So, here is a 30-minute chart of the British pound. And the level that I want to talk about is right here at 1.3331
Now, again, let’s start with a brief look at the weekly volume profile here on the left side of the screen. Again, we have the heaviest volumes traded here. That’s the weekly point of control. From there, from the weekly point of control, the price started to rise dramatically. Okay? That’s a very, very similar thing to what you saw on the NQ. Right? Now, the idea behind this is the same as on the NQ. Wait for the price to reach this level, the beginning of the area where the weekly point of control was, and go long from there. Again, let me show you with this fixed range volume profile as well. And see? There are also volumes in here, right before the price started to rise. So, not just throughout the whole week, but also, and this is important, those volumes were here before the start of this big push. Okay? So, those guys were buyers building up their long positions. When the price hits this level, which is the beginning of that heavy volume zone, it’s likely that those buyers will become active again and push the price upwards from there. Also, there are small fair value gaps right here. Just a small one, but at least something, right? Something to add strength to our level. By the way, the price was also reacting to this level in the past. Here. Not exactly at the level, though. Sometimes yes, sometimes no, but there were reactions around that level. That means that it was a resistance in the past because the price was reacting there. And then, the resistance turned into support. That’s the same setup that I showed you on the NQ. Okay? So, for all those reasons, I think that this is a solid level to trade from. Now, we just need to wait for the price to reach that level again, and when the price hits it, I’ll be waiting here to go long from there. Okay? So, that’s for the British pound, and let’s now check out the next trading idea. It’ll be on USD/CAD.
So, here is the USD/CAD 30-minute chart. In this case, we won’t be talking about a new level based on the weekly point of control, but there’s one thing that I wanted to show you about the weekly point of control. So, let’s start with that, and then let’s talk about the level, okay? So, let’s take a look at this profile. The weekly point of control is right here. Weekly point of control. The price moved away from it and then went back to the weekly point of control, hitting it here, but it did not really react to it. I think there was some macro news, but that doesn’t really matter. The price just went past it. No reaction at all. It was as if the weekly point of control wasn’t there. Okay? When you see something like this, when the price completely forgets to respect a level that’s very strong, like the weekly point of control, then it’s very likely to react to it from the other side. So, we had the weekly point of control here. The price went past it with no reaction at all, but then it pulled back to it, and boom! A beautiful and fast reaction exactly at the weekly point of control. Right? So, sometimes you can see that the weekly point of control or another level does not get respected. If you trade from there and go long, for example, from here, and end up with a losing trade, then what you can do is take a reversal trade. I call this a reversal trade. Exactly from the same level, but in this case, it would be a short. Okay? You would be shorting the weekly point of control. The market is very likely to react to it if it did not respect it the first time. Okay? So, that’s the weekly point of control on USD/CAD. But what I also want to talk about here is a level based on those volumes here, volumes that formed before this sell-off. I mean, inside this strong sell-off. That means that sellers were adding to their short positions here as they were pushing the price downwards. Now, I think that when the price reaches this level in the future, if it reaches that level in the future, those guys are likely to defend this place where they were active with their shorts and where they were adding to their short positions. So, I think that those guys will defend this place, and the price will react like this. So, now we just need to wait for the pullback. When the price reaches this level at 1.4031, it’s going to be a short from there, as those guys are likely to defend this heavy volume area. Okay? Now, one more thing to notice here is that we have a fair value gap that begins exactly at our level. I actually used the beginning of the fair value gap to pinpoint the beginning of that level precisely. At the same time, it’s also the beginning of the heavy volume zone here, so it nicely aligns. And also, you can see that in the past, there were a couple of reactions to this level. So, that means it was support because the price was reacting there, and now it has turned into resistance because the price broke through the support. So, all those setups are kind of pointing to this level. Now, we need to wait for the price to reach it again and then go short from there. All right? Now, if you guys are interested in learning more about volume profile trading and getting your hands on my custom-made trading indicators, then you want to head over to 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 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 the contest we had last time. The prizes for the contest were 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! And what I’ll do next is run 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. 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 look forward to seeing you next time. Until then, happy trading!