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Video Transcript:
Hey
everyone, it’s Dale here. Welcome to this new video from a new series called
Best Trade of the Week. I decided to start this series to show you the reality
of trading—not just the theory but the real trades I took. Every week I’ll pick
one trade, not necessarily the one that made the most money, but the most
interesting one from the previous week, or a trade where you can learn
something.
Today
is the first video in this series, and what I want to show you is a trade I
took last week on USD/CAD. What you see before you is the NinjaTrader 8
platform with my custom-made Volume Profile and VWAP indicators, and you’re
looking at the 30-minute timeframe of USD/CAD. I want to talk about a
short trade I took from this resistance. This was the short, and I want to show
you the reasoning behind the entry.
The
reason I picked this level is that, without Volume Profile, you wouldn’t really
be able to spot it. Let me show you. If you look at this trend area, this was a
very sharp and strong sell-off. If you look just at the price action, you can’t
really tell where the resistances are within this sell. But if you use the
Flexible Volume Profile like this, what stands out within this area is this
volume cluster. With simple price action, you wouldn’t really see it. This is
the beauty of Volume Profile—it shows you the important places in any chart at
first glance.
This
is a significant volume cluster formed within this strong sell-off. As you can
see, I was trading from that cluster. This was my short level. This is where
the price hit it, and this is where I went short. It wasn’t just about this
cluster—which, by the way, represents a place where sellers were active as the
price dropped and later defended this place—it was also about confluence with a
price action setup.
If
you extend the level more to the left, you can see that in the past the price
reacted many times to this area. Not exactly to the level, but to the general
zone. Since the price reacted there, it means that in the past it acted as
support. When the price broke below that support, the support turned into
resistance. This is a price action setup that works like a charm when combined
with Volume Profile. That gave me the trade entry and the reason I went short
here.
Now
let me talk about stop loss and take profit placement. The stop loss was placed
behind this heavy volume zone. That’s usually where I put my stop loss—behind
the heavy volume or, in other words, behind the barrier. So this was the stop
right here.
As
for the take profit, it wasn’t ideal because when the price hit this level, it
was just about an hour before macro news. This volatile candle here is the
macro candle. I had to exit the trade earlier, before the news. If you look at
the reaction after the macro news, you can see it was a shame to exit early,
but it’s extremely risky to hold through such high-impact news. So, it was
definitely the right decision to quit before the release.
If
there hadn’t been macro news, let me show you where the take profit would have
been. Option one: before this heavy volume cluster, because it stood in the way
of the short move and acted as a potential barrier. Option two: for the second
half of the position, it could have been at the first deviation of the weekly
VWAP, which often works as support or resistance, especially when the market is
trending like it was here. So that would have been the second option for take
profit.
As
you can see, the reaction to the level was very nice and quite strong. This
little “invisible” level, which you wouldn’t see without Volume Profile, worked
really well.
That’s
the Best Trade of the Week. If you want to get these levels in advance, you can
join our community where I post them every day. This is how the backend looks.
For example, you can see the latest post published 12 hours ago. There was a
new level on USD/CAD at 1.3797. On the chart, it automatically
prints those levels on members’ charts. The level from that table was this one,
based on a volume cluster formed within this rejection area. This is where the
price hit the level and where I went long. That was the reaction.
This
is how the members area looks and how the levels look. If you join us, you’ll
get access and can trade those levels alongside me. You’ll get them in advance.
You
can join us by going to my website, TraderDale.com. If you click “Trading
Course and Tools” you can get the Volume Profile Pack, which includes these
signals. You can also scroll down a bit and get all the packs together for a
discounted price.
I hope you liked the video and the new format. Let me know what you think and if you have any ideas for improvements. I’ll see you next time. Until then, happy trading.

es pls .thanks