Volume Profile Trading Ideas – 9th September 2024 (ES, AUD/USD, USD/CAD)

Hello everyone, it’s Dale here with a new weekly trading ideas video. What you see before you is NinjaTrader 8 with my custom-made Volume Profile and VWAP indicators. The chart before you is a 30-minute chart of the ES, which is the Standard & Poor’s 500 index. In this video, I’d like to talk about the resistance that formed on Friday. This resistance is at 5509, and as you can see on the chart, the ES is currently in a downtrend. I would like to participate in that downtrend and trade from significant volume zones.

As the price was dropping, it made a sharp rejection of higher prices. This tells us that sellers didn’t want the price to go any higher, and they started to sell aggressively here, pushing the price even lower. This occurred after the macro news on Friday. If you look closely into that rejection zone—because this is an important zone—you can see that this is where most of the trading took place. In other words, this is the most critical place within that rejection because it’s where the sellers started to jump in aggressively and reversed the price from buying into a new sell-off. So, this is a very important zone for sellers, and it’s the beginning of that zone where the heavy volume cluster forms. If the price comes close to this level, it’s likely that sellers will become active again, defend this area, and push the price downwards from there again.

For those of you familiar with Smart Money Concepts, this is the beginning of the fair value gap, which definitely adds strength to this level. Alright, so that’s the situation with the ES. What we need to do now is wait for that pullback. When the price comes back to this level, we can either open the order flow and wait for some kind of confirmation to get a better trade entry and exit, or if you don’t have order flow, you can take the trade at the first touch when the price reaches this level, as chances are there will be a reaction.

Alright, now let’s move on to the next chart, which will be AUD/USD. This is the 30-minute chart of AUD/USD, and here I’d like to talk about this newly formed resistance at 0.6730. If you look at the weekly Volume Profile, it shows how volumes were distributed throughout the previous week. The weekly point of control is right here, which is the place where the volumes were the heaviest last week—definitely a very important level.

From that weekly point of control, there was a sell-off, indicating that sellers were accumulating short positions and manipulated the price into this sell-off on Friday. If you look at the flexible Volume Profile just before the sell-off, you can see those heavy volumes here. I want to trade from the beginning of that heavy volume zone, which is our level, because this shows where sellers were accumulating their short positions right before the macro news. They kicked off the liquidity above, and boom—shot the price downward. This is the beginning of that heavy volume zone, and if there’s a pullback to it, I think there will be a reaction because the sellers from this zone, and throughout the week, will want to defend this level and push the price down again, as you can see on the Volume Profile.

Again, what we need to do now is wait for the pullback, and if it occurs, take it from there.

Now let’s move on to USD/CAD. There’s a similar level here, but in this case, it’s not based on the weekly point of control (which is here). Instead, the level is supported by heavy volumes but not the weekly point of control. This is a nice example of one of the setups I like to trade, which is called the Volume Accumulation Setup. There’s a rotation followed by strong trend activity. When you see this, you want to use the flexible Volume Profile to look into that area and see how volumes were distributed. You want to trade from the heavy volume zone that usually forms within the rotation. So, you wait for a pullback and enter a long trade from the beginning of that heavy volume zone.

In this case, buyers who were accumulating long positions here and then pushed the price upwards are likely to become active again when the price reaches this zone and push the price upwards from there again. The first deviation of VWAP from the previous week ends right here at our level, which adds a little strength, but the biggest factor is the Volume Profile setup and those heavy volumes that formed at the base of this strong buying activity.

Again, we just need to wait for the pullback, and if it occurs, take it from there. The level is at 1.35.

If you’d like to work directly with me and other professional prop firm traders, click the link below this video (which is uploaded on YouTube). The link will lead you to a page where I explain how we can transform you from wherever you are now as a trader to a professional, funded prop firm trader in less than 12 months. Below this video, you can also book a one-on-one call with me or another member of our team, who will walk you through the service to see if it’s the right fit for you.

Before I wrap 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. Right now, on your screen, you can see the name of the person who won the contest, so congratulations to the winner! I’ll be running another contest for next week. The only thing you need to do to participate is leave a comment below this video 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, and I look forward to seeing you next time. Until then, happy trading!