Volume Profile Trading Ideas – 1st July 2024

Hello everyone, it’s Dale here with a new weekly trading ideas video. Just a quick note before I jump into the trading ideas: I’m starting a new sale, the Independence Day sale, which means you can get my best Volume Profile and Order flow education and indicator packs at a massive discount. If you go to my website, trader-dale.com, and click the button that says “Trading Course and Tools” it will take you to a page where you can get both of those packs discounted. The Volume Profile pack will teach you everything about Volume Profile trading, and the Order flow pack will teach you everything about day trading with Order flow. If you scroll down a bit, you can get both packs together in one special bundle with an even bigger discount.

Alright, that’s about the special sale. Now, let’s go to the charts and talk about the first trading idea. The first trading idea is on the EUR/USD. This is the EUR/USD 30-minute chart, and I would like to talk about support that formed here at 1.1714. As you can see, there is an opening gap here. Opening gaps are not really standard with Forex, and these gaps tend to get filled. So, I’m not trading any longs until this gap gets filled. When it gets filled, I like to trade a long from this green line. The reason is that there was a heavy volume zone right before the gap. These heavy volumes represent buyers who were adding to their long positions here. If the price comes back to this level, the buyers are likely to defend this place and push the price upwards.

Alright, so this is a place from which I’d like to go long. As I was saying, I won’t enter any long positions until this gap gets filled because usually, gaps like this don’t stay on the chart too long without being tested. So, that’s the plan on the EUR/USD. Currently, I’m just waiting for the price to drop. I’m not entering any shorts here because I don’t have any short signals. I’m just waiting for the price to drop here, and if it does, then I will go long from there. I’ll definitely use Order flow for trade entry confirmation, but if you don’t have Order flow, you can just enter the trade from here at the first touch.

Alright, that’s the plan on EUR/USD. Now let me switch over to my swing trading workspace and show you a couple of swing trading ideas. What you see before you is a daily chart, which is my preferred time frame for swing trading, and it is EUR/GBP. One important thing here again is a gap. If you use Volume Profile like this, it shows heavy volumes right above the gap. The idea behind the short I have here, at 0.853, is that the price will close the gap, which it already did, and then react to the closest heavy volume zone. The price should react from here. Hopefully, the price will make it back to this level and go down from there as the sellers from this heavy volume zone will become active again and push the price downwards.

Another thing that adds strength to this level is the first deviation of the VWAP, which is this line. By the way, this is a yearly VWAP. The price tends to react to it, as it did here with a pullback and reaction. Hopefully, this will be another case where there is a pullback to the first deviation of the yearly VWAP and a reaction. This first deviation of VWAP adds strength to the level, and another thing that adds strength to it is that the price was reacting to this level in the past, which means it worked as support and has now turned into resistance. So, we have three setups: the Volume Profile setup, the VWAP setup, and the price action setup, all pointing to this zone. The price should react to it. Because this is swing trading, I have my stop loss here, which is about 37 pips, and my take profit is here. That’s my first take profit with a risk-reward ratio of 1, but I probably want to stretch it a bit and get more out of the short trade because I think there’s a lot of liquidity below these lows, and the market will try to purge those. I’ll probably try to get more out of this one.

Hopefully, we will see that pullback and be able to take the short from this level. By the way, with this kind of swing trading, I don’t use Order flow for trade confirmation; I just jump in at the first touch.

So, that’s the plan on EUR/GBP. Let me now show you another trading idea, which is also a swing trading idea on AUD/JPY. This is the daily chart of AUD/JPY because this is a swing trading scenario. I want to talk about the support at 104.35. If you use Volume Profile over that trend area, it doesn’t really matter how you use it; what’s always visible is this heavy volume zone. These heavy volumes were formed here, and because the price was rising in an uptrend, it tells us that buyers were active here. When the price retraces back, if it does, chances are there will be a reaction. That’s the idea behind this swing trade. The stop loss is below this first swing low and also behind the heavy volume zone, which should work as a barrier. The price shouldn’t really go past it. This blue line is the first take profit, but I’ll probably want to take more out of this because we are in a strong uptrend. When there’s a trend, you typically want to join the buyers and ride with them.

That’s the plan. If you look at the VWAP and its first deviation, it’s getting close to the level. It would be great if, at the time of the pullback, the first deviation was somewhere around because it would add strength to the level. But if it isn’t, I’ll still take it because this is a solid Volume Profile trend setup, good even without the VWAP confirmation.

Before I wrap up the video, I’d like to announce the winner of the contest we had last time. The prize for 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. Congratulations to the winner! I’ll do another contest for next week. To participate, 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!