Volume Profile Trading Ideas – 3rd June 2024

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Video Transcript:

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 volume profile and VWAP indicators.

The first trading idea I want to
comment on is the EUR/USD. This is a 30-minute chart, and I want to talk
about a newly formed support that developed on Friday. It is at 1.0824,
and the reasoning behind this support is that there was a heavy volume zone here,
which is a little rotation from which strong trend activity started. This zone
is a place where buyers were active, building up their long positions, and from
here they started to push the price upwards. This place is important to them
because they were accumulating here. So, when there is a pullback to this
level, to the beginning of that heavy volume zone, chances are there will be a
reaction as the buyers are likely to become active, defend their long
positions, and push the price upwards again. Alright, so that’s for the EUR/USD.
What I especially like about this one is the aggressive buying activity
starting from that heavy volume zone, which definitely adds strength to that

Let’s go to the next trading
idea. The next one will be on the EUR/CHF. This is a 30-minute chart of
the EUR/CHF, and the level I want to talk about is the resistance at 0.9860.
By the way, you’re looking at a 30-minute chart of the EUR/CHF here. There was
a strong trend, and when you use the volume profile over that trend, it will
show you that heavy volume zone, which definitely stands out. This heavy volume
zone shows us a place where sellers were active, adding to their short
positions as they pushed the price downwards. It is an important zone for
sellers because they were active here, and those sellers are likely to defend
this place. So, if there’s a pullback at some point in the future, chances are
there will be a reaction similar to what happened here. There was also a heavy
volume zone formed in this place, which caused this reaction. Ideally,
something like this will happen here as well. By the way, the price was
reacting here and here in the past, not exactly at the level, but it was not
that far, actually around 7 pips away. This tells us that this zone worked as a
support in the past and the support turned into a resistance as the price went
past that old support. Alright, so that’s another thing that slightly adds
strength to that level. What we need to do now is wait for that pullback, and
if it occurs, we can take it from there because chances are there will be a

The next trading idea I want to
show you is on the CAD/CHF. This one is a bit similar to the previous
trading idea on the EUR/CHF because there was also a trend on Friday. The
volume profile shows a heavy volume zone here and another much bigger volume
zone here. However, those volumes were tested. This is the heavy volume zone as
the price went downwards. Those volumes were accumulated in this place, then
there was this little pullback, the volumes got tested, and the price went
downwards. Because those volumes were tested, they are no longer relevant. But
what is relevant are the volumes formed here because those haven’t been tested
yet. Right now, this volume zone is not as significant, but what is significant
is the confluence of this price action setup, where the price was reacting to
this zone in the past, indicating it was a support. Then the support turned
into a resistance as the price breached that support. It turned into a resistance
here at the same place as the heavy volumes formed. It is a combo of two
trading setups that definitely adds strength to that level. If it were only
that heavy-volume zone, I wouldn’t be inclined to take the trade because it
simply isn’t that strong. But because of that combo, I’m definitely more
confident in trading it. Also, what I like about this one is that the sell-off
was very steep and aggressive, indicating that the sellers mean business. All
those little things add up and show a strong resistance here. What we need to
do now is wait for the pullback and take it from there.

Now, if you guys are interested
in learning more about 
volume profile trading, head over to my website at Trader-dale.com. If you click this button, it will take you to a page where you
can browse my trading education and custom-made trading indicators.

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!

What I’ll do next is hold 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!

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