Volume Profile Trading Ideas – 10th June 2024

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Video Transcript:

Hello, everyone; it’s Dale here with a new weekly trading ideas video. What you see before you is the NinjaTrader 8 platform with my custom-made Volume Profile and VWAP indicators. The chart before you is Gold Futures (GC), and it is a 30-minute chart.

So, what I want to talk about here is a new resistance. This is that resistance at 2351, and that resistance is based on this very strong selloff that occurred on Friday. If you use Volume Profile in this selloff, then you’ll see that there’s a nice volume cluster within that selloff. This volume cluster is showing us a place where sellers were active as they were pushing the price downwards in this downtrend. I think that when there’s a pullback to the beginning of that volume cluster, there will be a reaction from the sellers, who should be defending their short positions and pushing the price downwards again.

Now, the reason I like this volume cluster, let’s say, over this heavy volume zone here, well, actually, there are two reasons. This volume cluster is followed by this strong selling activity, whereas in this heavy volume zone, it’s hard to tell where exactly you want to place the level. It’s not so clear-cut, and I would simply prefer trading a well-defined level like this one. Additionally, there’s also this: if you look at the volume profile, that’s a cumulative volume profile from the previous week. This is how the volumes in the whole previous week were distributed. This is the weekly point of control. The price didn’t respect it and shot past that weekly point of control, but that doesn’t mean that this is a level that is already tested. It is still important; only now it should work as a resistance. So, when the price goes to that point of control, it should react there.

Alright, so the weekly point of control adds strength to that level we have found using that volume profile here. What we need to do now is just wait for that pullback and take it from there. Also, if you guys have Order Flow, you can use it to better time your trade entry when the price is around that level. You can use the Order Flow to help you out to confirm or improve your trade entry and trade exits. If you don’t have Order Flow, then you can just enter the short at the first touch of this level.

Alright, so that’s for this chart of Gold. Now let’s go to the next one, which will be on the NZD/USD. This is the NZD/USD 30-minute chart. On Friday, there was the NFP news, the Nonfarm Payrolls, which caused this massive volatility. If you look at the volume distribution here before that, there’s a nice volume bump, a nice accumulation zone in here before the drop started. So, in this zone, there were big trading institutions and strong sellers accumulating their short positions to manipulate the price to shoot downwards at the time of the news. This is the beginning of that heavy volume zone, that’s our level 0.6189. When the price reaches this at some point in the future, if it reaches it, then chances are there will be a reaction as this heavy volume zone appears to be an important zone for sellers who at first were accumulating their shorts there, then pushing the price downwards. Now, if the price reaches this zone, they should defend this zone because this zone is clearly important for them.

Alright, so what we need to do now here is just wait for that pullback and then take it from there. This is one of my favorite volume profile setups that I use. It’s called the Volume Accumulation Setup. You look for a rotation where heavy volumes were accumulated, and then it needs to be followed by a trend. Then you simply trade the pullback. So, that’s about this one, and let’s now go to the next trading idea, which will be on the AUD/CAD

So, on the AUD/CAD, we are again looking at a 30-minute chart. Here, this is the same scenario as on NZD/USD. We have a rotation followed by a strong trend. Let’s use the volume profile here, and again it shows a heavy volume zone which is followed by this. This is a sign that sellers were active here, and they were building up their short positions in this rotation. When the price makes it back to this level, which is at 0.9113, chances are there will be a reaction. See, it is very, very similar to the NZD/USD. So again, we just need to wait for that pullback here and take it from there.

Now, if you guys are interested in learning more about volume profile trading, then head over to my website at trader-dale.com. If you click this button here, it will take you to a page where you can browse my trading education and custom trading tools. Here is the Volume Profile Pack, which focuses on teaching you everything there is about volume profile trading and providing you with my custom-made volume profile indicators. Below that, there’s the Order Flow Pack, which will teach you everything about day trading with Order Flow, and this one will also give you my custom-made indicators, which include the Volume Profile and Order Flow indicators. If you’re interested in getting both, then you can get them in this special combo pack, where you can get the Volume Profile as well as the Order Flow Pack together for a discounted price.

Now, before I wrap the video up, I’d like to announce the winner of the contest we had last time. The prize of the contest was my custom-made Volume Profile and VWAP indicators for the TradingView platform. Right now, on your screen, you see the name of the person who won the contest. So, congratulations to the winner! What I’ll do next is I’ll do another contest for the next week. The only thing you need to do to participate in this contest is to 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 that. Thanks for watching the video, and I’ll be looking forward to seeing you next time. Until then, happy trading!

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