Video Transcript:
Hello
everyone, it’s Dale here. In this video, I want to show you a trade I recently
took on the NQ. This trade nicely demonstrates my Volume Profile trading
strategy, which you can easily replicate yourself. Let me explain what this was
all about.
The
first thing I look at when analyzing charts is whether there’s a rotation, like
here, or a trend, like here. Based on that, I decide how to trade. In this
case, there was an uptrend, so I focused on the uptrend zone using a Volume
Profile. I wanted to see how the volumes were distributed within this uptrend
zone. Specifically, I look for significant volume clusters, like this one,
because in a trend, such clusters indicate areas where buyers were active and
took long positions. In this case, it was right here, due to the heavy volume
cluster.
This
tells me that this is an important area for the buyers and that, in the future,
these buyers are likely to defend this zone. This is the Volume Profile setup I
use during trends: I identify volume clusters within the trend, wait for a
pullback, and trade from that level. However, I often combine this with
additional setups, typically price action setups.
Let
me show you two price action setups that align with this Volume Profile setup
and reinforce this level. First, notice the strong rejection very close to our
level. This indicates that the zone worked as resistance in the past because
the price reacted strongly here. When the price broke through this resistance,
it turned into support. This newly formed support aligns perfectly with the
volume cluster, confirming the level.
The
second price action setup is a fair
value gap. If you’re familiar with Smart Money Concepts, you’ll recognize
this as one of its key elements. My software identifies fair value gaps, and
although the gap in this case has already been tested, it was initially here.
For a long trade scenario, I like to trade from the start of the fair value
gap, which is this level. As you can see, this level coincides perfectly with
the area I identified, and the price reacted very well to it.
While
these setups are helpful, the volume cluster remains the most important factor
for me. For all my trades, I first need to see significant volumes. If volumes
are present, I then look for additional setups to confirm the trade. It’s rare
for me to trade based on just one setup; I usually rely on multiple setups
aligning at a single level or zone to support my decision.
This
was the trade I took using this strategy, and as you can see, the reaction was
excellent. While this analysis is hindsight, I wanted to show you the thought
process behind the trade and how you can apply this method to your trading.
It’s a straightforward strategy—you just need a Volume Profile indicator to
identify heavy volume zones.
As
mentioned, this analysis was done in hindsight, but I had actually published
this level for members of my trading course the day before. I provide my
trading levels daily in advance for all members to use and trade. If you’re
interested in joining, I’m currently running a special Christmas sale. Let me
briefly explain.
If
you visit my website, Trader-Dale.com,
and go to the “Trading
Course and Tools” section, you’ll find the special page with the Christmas sale. Here, you
can get my most popular trading and indicator packs at a discounted price.
These include the Volume Profile Pack for Volume Profile trading, the Order
Flow Pack for day trading with Order Flow, and a brand-new Smart Money Pack
focused on Smart Money trading. This last course is unique and taught by a
professional trader managing a $2 million prop firm account. He’ll teach you
his exact strategy step by step so you can replicate it.
We
don’t usually offer this course, but it’s available during the Christmas sale
until the end of the year. You can get all three packs together for a
discounted price of $597. If you’re interested, visit the page and take
advantage of this offer before it expires.
Thanks
for watching the video! I hope you found it helpful, and I’ll see you next
time. Until then, happy trading!
