Volume Profile Trading Ideas – 5th August 2024

Hello everyone, it’s Dale here with new weekly trading ideas. What you see before you is the Ninja Trader 8 platform with my custom-made Volume Profile and VWAP indicators. The chart before you is the AUD/USD 30-minute chart. As you can see, there has been quite a ride here. This strong sell-off means that sellers are in control, and we can track them with the Volume Profile.

Now, let’s see what happened here today. If we look into this zone with the Volume Profile, what stands out is this heavy volume zone, which occurred right before this sell-off. This tells us that sellers were active here, building their short positions before the sell-off. The beginning of that heavy volume zone is at 0.6486. I think that if there is a pullback, there will be a reaction because the sellers from here will want to defend this place, which is clearly important to them. We can see that on the Volume Profile here, and they should push the price downwards from there again.

Additionally, you can also see that this is the low of the previous week. The price reacted twice to this level in the past, and it was the low of the previous week, meaning it was support here and here. The price went past the support, rendering it a new resistance. So, this is a new resistance based on price action as well as this Volume Profile setup. Two independent setups are telling us to go short from this place. What we need to do now is just wait for that pullback and take it from there.

Now, there is one thing that is a bit risky, and that’s this very strong rejection of lower prices. This tells us that aggressive buyers may be here, rejecting the lower prices and pushing the price up first. If the price goes aggressively to that level, you’ll want some confirmation, ideally on order flow. You want confirmation that the sellers from here are actually jumping in, defending this place, and pushing the price downwards. This confirmation is especially important because of the strong rejection of lower prices. If you just enter here blindly, the price could shoot past this level, resulting in a losing trade. Ideally, if you have order flow, wait for confirmation around the level and then enter the trade. If the price shoots aggressively past the level, you can wait for a pullback to that level again and go long from there. Even if it doesn’t get respected, it will still be a strong level to trade from, only from the other side.

Alright, so that’s the plan for AUD/USD. Let us now look into the next chart, which will be the USD/JPY. This is a 30-minute chart of the USD/JPY. Again, we see a very nice trend here. If you use the Volume Profile over that trend area, what stands out are those significant volume zones. Now, I’m looking to trade from this one. The level is 144.5, and from this one, the level is at 148.8.

Volume zones like this one, showing selling activity, or this selling activity here, indicate that the price is slowly moving downwards without aggression. That’s why I picked those two levels; they look stronger in my opinion. The first one is based on volumes created by sellers pushing the price downwards. The idea behind this trade is to wait for a pullback, where those sellers should defend the heavy volume zone and push the price downwards. The logic behind the second one is the same; sellers are building up their short positions, and they should defend this level if the price comes here. Ideally, we see a pullback to the first level with a reaction, then a pullback to the second level with another reaction.

Regarding the second chart, there’s also a nice confluence because the price reacted to this level in the previous week very nicely. This means it was a support that turned into resistance as the support got breached. Alright, so nice additional price action setup here. That’s for the USD/JPY.

Let’s now check out the next trading idea, which will be on the CAD/JPY. This is a 30-minute chart of the CAD/JPY. You can see a nice similarity between this and the USD/JPY I just showed you. There’s a downtrend, and if you look into the volume distribution here, it shows this heavy volume zone, this heavy volume zone, and this heavy volume zone.

I’m not looking to trade this one because no strong selling activity starts from there. However, I want to trade this one because strong selling activity started from here, and this one because strong selling activity started from here as well. As usual, I’m trading from the beginnings of those heavy volume zones. Those are the levels 104.46 and 107.27. Ideally, we see a pullback to the first one with a reaction, and then a pullback to the second one with another reaction.

Alright, so that’s the plan. If you guys would like to learn more about Volume Profile trading, head over to my website, trader-dale.com. If you click “Trading Course and Tools” it will take you to a page where you can browse my trading education and tools. This is the Volume Profile pack, which will teach you everything about Volume Profile trading. Below that, there’s the Order Flow pack, which focuses on day trading with order flow. Below that, there’s the newly released VWAP pack, which focuses on teaching you how to trade with VWAP. All these packs include all the indicators you are going to need: Volume Profile, VWAP, and Order Flow indicators. These are custom-made indicators available for various trading platforms.

By the way, if you are interested in all three packs, you can get them together for one discounted price.

Alright, that’s about it. Now, before I wrap up the video, I’d like to announce the winner of the contest we had last time. The prize of 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!

Next, I’ll do another contest for the next week. The only thing you need to do to participate in this contest 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 be looking forward to seeing you next time. Until then, happy trading!