Volume Profile Trading Ideas – 17th June 2024

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Video Transcript:

Hello, everyone. It’s Dale here with a new weekly trading ideas video. Just a quick note before we begin: if you go to my website, Trader-dale.com, and click on “Trading Course and Tools” there’s a brand new course that I just released called the VWAP Pack. It is in there, and it will teach you everything you need to know to trade profitably with VWAP. It includes a video course with 31 videos about VWAP trading, my custom-made VWAP indicators for various trading platforms like TradingView (even the free version), NinjaTrader 8, and MetaTrader 4 and 5. It also includes my custom-made volume profile indicators. You can get it for $397 until the end of this week, as I’m running a launch sale. So currently, the whole VWAP Pack is discounted. You cancheck out this video where I explain everything that’s included in more detail. If you are interested in getting all three packs—the Volume Profile, Order Flow, and VWAP packs—together for a discounted price, just scroll down a bit. Here’s the special deal where you can get all three together for $797: the entire Volume Profile Pack, the entire Order Flow Pack, and the entire VWAP Pack.

By the way, if you missed the VWAP webinar I had last week, you can go to the video section and watch the VWAP webinar there.

Let’s check out the charts now. The first trading idea I’d like to talk about is on GBP/USD. This is a 30-minute chart of GBP/USD on NinjaTrader 8 with my custom-made indicators, which include volume profile and VWAP indicators. The level I’d like to discuss here is a resistance level at 1.12704. It is based on a volume profile setup, which I trade when there’s a trend. If you look at this trend area, there’s a heavy volume zone indicating that sellers were active here, adding to their short positions as they pushed the price lower. If there’s a pullback, there’s a chance that from this level, this heavy volume zone will see a reaction as sellers defend this area and push the price downwards. Additionally, there’s also a price action setup here. There was a stronger reaction, meaning this was a support in the past. When the price broke the support, it turned into resistance, and it aligned with our volume cluster, adding strength to this level. Additionally, if you look at this grey line, it is the first deviation of the weekly VWAP from the previous week, which ends at our level, adding more strength to it. Now, we need to wait for a pullback to this level and take it from there. 

Let’s check out the next trading example on EUR/CHF. This is a 30-minute chart of EUR/CHF, and we have a similar situation as on GBP/USD. There was a strong trend, and if you use the volume profile over that trend, you’ll notice this heavy volume zone. This zone shows where sellers were active, adding to their short positions as the price dropped. The beginning of this zone is our level to go short from. Let me just reload the page so you can see the level clearly. Here it is at 0.9595, the beginning of the heavy volume zone. We hope to see a pullback to this area, where sellers will likely defend the zone and push the price downwards.

I wanted to show you one more thing. In the webinar, I talked about using the anchored VWAP to specific areas on the chart. One of these areas was anchoring the VWAP to heavy volume zones. Let me anchor the VWAP to this heavy volume zone as I showed in the webinar. I anchor the VWAP at the end of the heavy volume zone where the strong trend starts. I anchored it here to this candle, and you can see the price reacted nicely with a pullback and subsequent reaction. If you watched the webinar, you might remember I mentioned it doesn’t matter exactly which candle you use—any of the relevant candles will point to the same place where the price reacted.This is just one of the setups I showed at the webinar, demonstrating how it should work.

Next, let’s check out the trading idea on AUD/CHF. This is a 30-minute chart of AUD/CHF. I wanted to show you this volume accumulation setup. There was a rotation where heavy volumes were accumulated, followed by strong trend activity. The beginning of this heavy volume zone is our resistance level at 0.5955. This shows where sellers were active, building up their short positions before pushing the price downwards. If there’s a pullback, whether today, tomorrow, or even next week, there’s a good chance there will be a reaction from the sellers who were active in this area. Additionally, if you look at the first deviation of the VWAP (the grey line), the weekly first deviation ends here, close to our level, adding more strength to the level. We need to wait for a pullback, and if it occurs, we take it from there. Also, if you anchor the VWAP to the start of the trend after the heavy volume rotation, it will indicate short trades with very nice reactions. This is part of my custom-made VWAP indicator included in the VWAP Pack.

Before I wrap up the video, I’d like to announce the winner of our last contest. The prize was my custom-made volume profile and VWAP indicators for the TradingView platform. The winner’s name is displayed on the screen now. Congratulations to the winner! I’ll do another contest for next week. To participate, leave a comment below this video on YouTube, and next week, I’ll randomly pick one person to win this set of custom-made indicators.

Thanks for watching, and I look forward to seeing you next time. Until then, happy trading!

2 thoughts on “Volume Profile Trading Ideas – 17th June 2024”

  1. Thank you for the analysis. Your breakdown and the volume profile make it really interesting. However, what I really want to know, based on your experience with volume profiles, what the most common risk-to-reward ratio is that works 90% of the time.

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