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Video Transcript:
Hello everyone, it’s Dale here with
a new weekly trading ideas video. Let’s first start with a trading idea on the EUR/USD.
By the way, what you see before you is NinjaTrader, a platform with my
custom-made Volume Profile and VWAP indicators. This is a 30-minute chart of
the EUR/USD, and I would like to talk about this support level at 1.088.
This is also a support level that I published earlier for members of our
Trading Group, and today I decided to show you this support and explain why I
believe it’s a strong level.
Let’s first talk about the Volume
Profile. If you look in this zone where that support was formed, there is a
strong rejection of lower prices. This means aggressive sellers were pushing
the price downward, and then aggressive buyers started to jump in, pushing the
price aggressively upward. Now, if you use a Volume Profile over this area,
there is a significant volume bump. It’s not as strong as this one, for
example, but it is at the place where the price actually turned. So, even
though the volumes are not as heavy as in here, it is a very important signal
that buyers who rejected the lower prices and turned this selling into buying
were active here. This is the beginning of that volume cluster, so that’s where
I have the level. If the price comes here, it’s likely that the buyers will
become active again and push the price upward from there. This is the Volume
Profile rejection setup.
In this area, for example, there
was a strong rejection as well. If you use the Volume Profile over that area,
you can see a heavy volume bump here. This was the reaction to it. There might
also be a reaction to this one, but I think that if the price comes close, it
will want to drop a little further downward to test those volumes. That’s why I
have this volume cluster instead of this one, but I wouldn’t be too surprised
if the price reacted to this one as well before continuing to test the second
one.
Now, let me show you something on
the Order Flow because it’s very visible there. This is the Order Flow software.
Let’s focus on this chart—this is a 30-minute chart of the Euro Futures,
but the correlation between futures and spot is almost 100%, so we can look at
futures as well since it has better data for Order Flow. Here is the heavy
volume zone—this is the rejection—and these are the heavy volumes. See how the
algorithms started to become active here as the price was dropping? They
started to buy here and reversed the price upward. You can tell very easily
just by looking at the chart and seeing that this is a darker shade of gray,
which indicates huge volumes.
Now, one more thing I wanted to show you is on this chart—this is a 30-minute chart as well, but it’s a filtered chart, which means it shows filtered trades, only the biggest orders. Here, you can see huge orders—104 contracts in just one trade—and from there, the price reversed and went upward. So, what we need to do now is just wait for the pullback to that level and take it from there. If you have Order Flow, you can also wait for confirmation around the level, using the Order Flow to better time your trade entry and exits.
Alright, so that’s the plan for the
long on EUR/USD. Now, let’s move on to the next trading idea, which will
be on the AUD/USD. This is a 30-minute chart of the AUD/USD. The
first thing I wanted to show you is the Volume Profile—the volume distribution
for the previous week. This is how the volumes were distributed over the entire
previous week, and here is the weekly point of control—the heaviest volumes
throughout that whole week were traded here. As you can see, I have a level
here for a long at 0.6555. This long is based on volumes formed in this
volume cluster within this uptrend. The Volume Profile indicates that buyers
were pushing the price upward and adding to their long positions here, so they
should defend this level. That’s why the price should react there.
At the same time, we have the
weekly point of control here, which definitely adds strength to that level
because the weekly point of control by itself is a very strong level to trade
from. One thing I’m a little concerned about is this weak low, and the risk
that the price could just test the liquidity below all those candles below this
weak low. Normally, I would be very careful about a weak low like this, but since
this is the weekly point of control, I decided that it’s worth the risk, and
I’m going to take that trade. In my opinion, the chance of a successful
reaction is greater than the chance of the price testing that weak low, mostly
because of the weekly point of control.
Alright, so that’s the plan for AUD/USD.
Now let’s move on to the next one—the USD/CHF. Here we have another
30-minute chart with a heavy volume zone followed by very strong and aggressive
buying activity. The level is at the beginning of that heavy volume zone as
well as the beginning of that strong buying activity. It is at 0.8577,
and this is basically the volume accumulation setup. Buyers were accumulating
their long positions here and then pushed the price aggressively upward. When
the price reaches this level, chances are that buyers will react here and
defend this place, which is clearly important to them because they placed many
long positions here, and they’ll push the price upward from there again.
That’s the plan for USD/CHF. If you’re interested in learning more about Volume Profile trading, head over to my website, Trader-Dale.com. If you click the button that says “Trading Course and Tools” it will take you to the page where you can browse my trading education and trading tools. This is the Volume Profile pack, which will teach you everything about Volume Profile trading. Below that is the Order Flow pack, which will teach you everything about day trading with Order Flow. Below that is the VWAP pack, which focuses on trading with VWAP and Anchored VWAP. If you’re interested in getting all three together in a discounted bundle, you can get it at the bottom of the page.
There are videos you can watch,
which will show you everything included in all those packs. Now, before I wrap up
the video, 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
contest winner. Congratulations to the winner! I’ll do another contest for the
next week. To participate, just leave a comment below this video, which I’ll
publish on YouTube, and next week I’ll randomly pick one person to win this set
of custom-made indicators.
That’s all for now. Thanks for watching the video, and I look forward to seeing you next time. Until then, happy trading!
