Volume Profile Trading Ideas – 21st October 2024

Hello everyone! It’s Dale here with a new weekly trading ideas video. Before we jump into the trading ideas, just a quick note about a special Halloween sale I’m running on my website. If you go to Trader-Dale.com and click this button here, it will take you straight to the page where you can get the discount. 

This discount applies to my best educational and indicator packs: the Volume Profile Pack, the Order Flow Pack, and the VWAP Pack. You can get each of these discounted separately, or if you scroll down a bit, you’ll see an option to get all three together at a special price. This offer is available until the end of the month.  Alright, that’s the special deal—now let’s switch to the charts and talk about the trading ideas. 

The first one is on AUD/USD. What you see here is the AUD/USD 30-minute chart. As you can see, since the start of the day—or at least the European session—the price has been dropping rapidly.  Using the Volume Profile from the start of the day, you’ll notice heavy volumes in this small rotation before the sell-off began. This suggests sellers were building short positions here, preparing to push the price downwards. The resistance level I’ve identified marks the start of this heavy volume zone at 0.6713. This zone should act as strong resistance. If the price pulls back to this level, the sellers are likely to defend it, pushing the price down again. So, we’ll need to wait for the pullback to take this trade. There’s an additional confluence here: a Fair Value Gap (FVG), highlighted in red. In a short trade setup, I like to trade from the start of the FVG, which aligns perfectly with our resistance level. 

Now, let’s move to the next trading idea on EUR/GBP. Here’s the EUR/GBP 30-minute chart. What caught my eye was this strong reversal. If you apply the Volume Profile to this reversal zone, you’ll see significant volumes traded before the price turned from a sell-off to strong buying activity. These volumes indicate that buyers started building long positions here, which makes this area important. If the price pulls back to this level, it’s likely the buyers will defend it and push the price up again. Similarly to the AUD/USD setup, we have an FVG here, highlighted in green, since this is a long trade scenario. The FVG starts at our heavy volume zone, and I prefer to trade from the beginning of the FVG. 

The next idea is on CAD/CHF. Here’s the CAD/CHF 30-minute chart. This setup is what I call the Volume Accumulation Setup. It involves a rotation followed by a strong trend.     Using the Volume Profile over the rotation zone, you’ll notice heavy volumes where the trend starts. These heavy volumes suggest sellers were building short positions before pushing the price downwards. This creates a resistance level at 0.6293. We just need to wait for the price to return to this level to take a short trade. 

Like the previous examples, we also have an FVG here, though it’s smaller. Let me zoom in—there’s a smaller FVG at the top and a much larger one below. When two FVGs align like this, I treat them as one large FVG, which adds more weight to our resistance level.  Even if the price doesn’t reach this level today, it could happen in a few days or next week. When it does, there’s a good chance of a reaction. 

Before wrapping 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. On your screen now, you’ll see the name of the contest winner. Congratulations to the winner! 

I’ll also be running another contest for next week. To participate, simply leave a comment below this video on YouTube. I’ll randomly pick one person to win the indicator set.