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

Hey guys, it’s Dale here, and in this video, I’m going to show you some of the strongest Volume Profile levels to trade this week. We are going to take a look at the NQ, the Japanese yen, and then also at a swing trade on EUR/GBP. So, let’s get to it. Let’s start with the NQ. What you see here is the TradingView platform, and this is a 30-minute chart of the NQ. What I want to focus on is this recent sell-off on the NQ. What I’ll do here is show you how volumes looked inside this sell-off. For that, I’ll use the Volume Profile tool and set it up like this. So, we can see how the volumes are distributed in this trend area. That’s what I’m always interested in. When there’s a trend, I want to see how volumes were distributed during that trend. What does price like to do? It likes to react to significant volume clusters. For example, here, there was a volume cluster, and the price was reacting to it like this. This volume cluster, though, has been tested now. It’s spent. The price has already made a couple of reactions to it. But the next one in line, this one, is still good to trade because the price has not touched the volume cluster yet. So, what I want to do is trade a pullback to it. When the price hits that level, which is at the beginning of the volume cluster, I like to trade from the beginning of the volume cluster. When the price hits this level at 29,430, I’ll go short from there, as I think those guys were adding to their short positions here while pushing the price downwards. There was heavy volume activity here, and those guys should defend this area because I think it is clearly important to them, as they were adding to their short positions there. Right? So, at the beginning of that heavy volume cluster, that’s where my short is, and I’ll be waiting here with a pending order and just go short when the price hits that level. So, that’s the Volume Profile setup behind this trade. But there’s also one more thing. If I extend this line, this resistance line, like this, then you can see that, in the past, there was a very strong reaction to that level, right? That means it was a support in the past. When the price blew past the level, the support turned into a new resistance. That’s a price action setup, and I like to combine it with Volume Profile setups like this one. Okay, so we have a combination of the Volume Profile setup and this price action setup. On top of all that, let me delete all the drawings here. On top of all that, there’s also a small Fair Value Gap right here. The Fair Value Gap begins here because this is a short trade scenario, and that also adds strength to that level. All right, so that’s why I want to trade this now. I’m simply waiting for the pullback, and when the price hits this level, if there is no macro news, then I’m going to go short from there. All right, so that’s it for the NQ. Now, let’s check out USD/JPY.

So, here we have a 30-minute chart of USD/JPY, and again, I want to take a look at a strong downtrend area. I’ll do it the same way as I did with the NQ. I’m going to use the Volume Profile tool and look into this downtrend area to see where the most significant volumes were traded. As you can see, the heaviest volume zone, this one, has already been tested a couple of times. So, that’s spent. But there’s another one. It’s weaker, but it still stands out. It is here. It hasn’t been tested yet, so it’s good to trade. That’s the one I want to talk about. The resistance represented by this volume cluster is at 157.69, and it is not exactly at the beginning of the volume cluster, but it is at the beginning of a Fair Value Gap. There’s one Fair Value Gap, and then there’s a bigger one below it. When the Fair Value Gaps are stacked like this, I look at them as if they were one big Fair Value Gap, right? And I like to trade from the beginning of it, from the beginning of the Fair Value Gap. But again, the most important reason for this short level is not the beginning of the Fair Value Gap. Don’t get that wrong. The most important thing is that volume cluster, which was formed within this important sell-off area, right? Because that volume cluster represents a place where sellers were adding to their short positions as the price was dropping, right? So, the idea behind this is to wait for the pullback. When the price reaches this volume cluster, those guys should defend it and push the price downwards again. Okay, that’s the main idea behind this. But there’s also one additional thing that adds strength to it. I need to scroll back a bit and extend this line that we have here. If I do that, if I extend the line like this, then you can see that, in the past, the price made a couple of strong reactions here, right? That means it worked as a support in the past because the price was reacting here and here. When the price went past that level, it turned into resistance. It’s the same setup that I showed you on the NQ, right? So, again, in this case, it adds strength to our level, which is here. So, again, it’s about combinations: the volume cluster, the Fair Value Gap, and this support-resistance flip setup. Three setups pointing to this level. Okay, so that’s why I want to trade it now.

Let’s talk about the higher level that I have here, this one at 158.05. This one is actually based on a bigger picture because, if you take a look at the profile, the gray profile on the left here, that’s the weekly profile. That’s how the volumes were distributed throughout the whole week. The weekly Point of Control, which is the place where the volumes were the heaviest, was right here. That’s the weekly Point of Control. From the weekly Point of Control, this whole sell-off started. That’s a very important thing to notice, and that makes this area very, very important for every participant in the market, right? So, what do I think was happening here? I can show you with this flexible profile here. What I think was happening was that sellers were accumulating their short positions throughout this whole area, and then they initiated this strong sell-off, right? When the price reaches this level, I think those sellers are likely to defend this area because it was very important to them. It was the weekly Point of Control, and they’re likely to push the price downwards from there again. Okay, so it’s not just about the volume cluster that was formed before the sell-off. That’s also important, right? That’s the volume cluster before the sell-off, but it’s also about the bigger picture: the weekly Point of Control here, right? There’s also a small Fair Value Gap right here. That also adds some strength to the level, at least a bit. But you can see that the sell-off really started from here, right? So, yeah, that’s why I think it’s very important when there is a weekly Point of Control and a strong trend starts from there. The weekly Point of Control is always very, very important, and the market almost always respects it. All right, so that’s it for those two intraday market ideas.

Now, let’s talk about a swing trading idea, and that one will be on EUR/GBP. So, here is a daily chart of EUR/GBP. Because we are talking about swing trades, that’s why I’m looking at the daily chart. Let me show you the most important thing here. We have a massive volume zone right here. All those volumes formed during this rotation. I can show you with the profile like this. The heaviest volumes in this whole rotation were traded in this area, and the sell-off started from there. That’s what I was showing you on USD/JPY, right? We had heavy volumes from which strong trend activity started. This is the same thing, only this is a daily chart of a different instrument, but the logic is the same, right? So, that’s an important area because sellers were accumulating their short positions here, and from there, they initiated the sell-off, right? That’s why I think this should be a strong level to go short from at 0.8565, as sellers should be defending this level in the future because it was important to them in the past, and they probably have a lot of positions here. So, they’ll want to defend this area. That’s why, if there’s a pullback, the price should respect that level.

Now, another level that I want to share with you is here. This one is another resistance, and it’s at 0.8445. This level is here because there’s also a volume cluster there. It’s not as strong as this one because this one is extraordinarily strong, but this one still stands out. The reason I like this specific volume cluster is that there’s also a confluence. If I extend this line, then you can see—whoops—you can see that there was a reaction here in the past, not exactly at that level, but very close, right? And the reaction was extremely strong. That means this area was a strong support. Now, that support has turned into resistance. It turned into resistance when the price blew past it. Okay, by the way, there was also another smaller reaction here, so that also counts. At the time when the price was pushing through, those volumes were formed. That’s why this volume cluster is important, and not, for example, this one or this one. That’s why I like this one more. Also, there’s a Fair Value Gap. It’s always good to have a Fair Value Gap around your trade because it adds strength to the level. Okay, so we have a couple of things again. Again, it’s about combinations.

Now, I’m waiting for a pullback and then a short from there. The ideal scenario would be something like this, with the price then coming back and reacting to that higher level. Keep in mind that this is swing trading, so the stop-loss and take-profit levels need to be set accordingly. For example, the stop-loss for the first trade, for this lower level, will be here. And for the second trade, this short, it will be here, right? Because this is swing trading, we need to let the trades breathe and develop. All right? The take-profit needs to be at least a 1:1 risk-to-reward ratio, somewhere around here, and for the higher levels, somewhere around here. But ideally, a risk-to-reward ratio greater than 1:1 is preferable. A 1:1 ratio is the minimum for these swing trades, as well as for the intraday trades.

Now, if you guys are interested in learning more about Volume Profile trading, I have a very special deal for you because we are currently running a special Halloween sale. Let me show you real quick. If you go to my website Trader-Dale.com, and click this button here, which says “Trading Course and Tools” it will take you straight to this special Halloween discount sale. You can get my educational and indicator packs separately here. Or, what’s even better, if you scroll down, you can get a combo pack that includes all four packs together: Volume Profile, Order Flow, VWAP, and Smart Money packs. Everything together, with lifetime access, for one discounted price of $697. That’s for all of them together, and the offer is available until the end of the month. So, if you’re interested, hurry up because this will expire in a couple of days. All right, so thanks for watching the video, and see you next time. Until then, happy trading.

Now, before I wrap up the video, I’d like to announce the winner of a contest we had last time. The prize for 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! What I’ll do next is run another contest for next week. The only thing 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!