Volume Profile Trading Ideas – 2nd September 2024

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. You are looking at the chart of the ES, which is the futures for the S&P 500 index, and this is a 30-minute chart.

Currently, on the ES, if I zoom out a bit, there’s a rotation where not much is happening. If I had to guess, I think the markets are waiting for some impulse, which could come this Friday when the NFP payrolls macro news is released. Very often, after a rotation like this, there’s a strong trend, so I’m waiting for that impulse to start the trend. Until then, we can trade within the rotation, and there’s a strong level in that rotation at 4561.50. This level is a support, which is based on the heavy volumes formed within the rejection of lower prices. These volumes indicate that buyers were active here. Essentially, sellers were pushing the price downwards, buyers started to jump in, and then pushed the price upwards. These heavy volumes suggest that these were likely institutional buyers driving the reversal, which is why I think this is a strong level to trade from. If there is a pullback, the ideal scenario would be a reaction to those heavy volumes. I think the chances are good that there will be a reaction, with the price moving upwards back into the current rotation. When there’s a rotation like this, I like to trade this kind of setup—this rejection setup—with significant volumes within that rejection zone. That’s how I trade when there’s a rotation.

By the way, if you look at the volume profiles here, the last two weeks are D-shaped, which means the market is in a rotation. Alright, that’s it for the ES. Let’s now go to the next chart, which will be the AUD/USD. Here, I wanted to talk about two levels. One of them is very close to the current price and may get hit soon. It is this level at 0.6782, which is based on those heavy volumes formed within this strong selling activity. Oh, and by the way, this is a 30-minute chart; I forgot to mention that. This level is at the beginning of that heavy volume zone. Another thing to note is that the price was reacting to this zone in the past—not exactly to the level, but to this general area—which means it worked as a support. This zone acted as a support zone and has now turned into resistance. At the same time, we have that heavy volume cluster here. One risk factor is that the price made a reaction close to our level, reacting to those heavy volumes. However, I still think there’s a chance that the price will react here, as this level and the heavy volume cluster haven’t been tested yet. That’s the first level, so I’d better get ready to jump in.

The second level is 0.6797, which is based on the heavy volumes accumulated before this sell-off. Alright, let me just jump to that chart. Alright, I’m in the chart now, let’s see how it develops. As I was saying, the second level is based on those heavy volumes formed before this sell-off. What’s nice here is the aggressiveness that the sell-off started with—this is a Fair Value Gap. For those familiar with Smart Money Concepts, this is a Fair Value Gap, and this level marks the border of that gap, making it a strong level to trade from. For these reasons, I believe this is a strong level to trade from within this heavy volume zone. If there’s a pullback to it, ideally, there would be a reaction here, leading to a pullback and then another reaction. If there’s a pullback to this level, I think there’s a good chance that sellers will take over and start selling from the beginning of that heavy volume zone, pushing the price downwards.

Now, the next trading idea I want to discuss is on the USD/JPY, so let’s check it out. This one is based on a Volume Profile setup called the Trend Setup. Oh, and by the way, you’re again looking at a 30-minute chart. So, this is a 30-minute chart of the USD/JPY. This is the trend, and within that trend, there’s a significant heavy volume zone. This heavy volume zone indicates that buyers were active here as they pushed the price upwards. The beginning of that heavy volume zone is at 145.62, and that’s where I would like to trade from. So, if there’s a pullback, chances are that the buyers from here will want to defend this area and push the price upwards again. That’s why I’m waiting here, and if the price makes that pullback, I’ll go long from there.

Now, similar to the AUD/USD, there was a reaction very close to our level, which means this zone was a strong resistance in the past. When the price broke through that resistance, it turned into a new support. So, that’s the price action setup I like to trade, and it nicely aligns with the Volume Profile setup here, making it a good combination. What we need to do now is just wait for that pullback, and if it occurs, we’ll take it from there.

If you’re interested in learning more about Volume Profile, VWAP, or Order Flow trading, head over to my website at trader-dale.com. If you click the button that says “Trading Course and Tools” it will take you to a page where you can browse my trading courses and custom-made tools. Right now, I’m running a special Back to School sale, which means you can get my best educational and indicator packs at a massively discounted price. 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. Both of these packs also include my custom-made indicators—Volume Profile and Order Flow indicators for various trading platforms. If you scroll down a bit, you can get a very special discount on both of these packs together. The Volume Profile and the Order Flow pack, both together, with everything included, for only $597. However, as I mentioned, I’m running a special Back to School sale that will end in 4 days, so if you want to join us, now is a great time.

Before wrapping up the video, I’d like to announce the winner of the contest we had last time. The prize was my custom-made Volume Profile and VWAP indicators for the TradingView platform, and right now, on your screen, you can see the name of the person who won the contest. Congratulations to the winner! I’ll be running another contest for the next week. The only thing you need to do to participate is 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 it. Thanks for watching the video, and I’ll look forward to seeing you next time. Until then, happy trading!