Volume Profile Trading Ideas – EUR/USD, ES & NQ

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. The chart before you is the EUR/USD 30-minute chart, and I would like to talk about this support level, which is at the base of this strong uptrend. The support is at 1.102 and is based on a Volume Profile setup, which is called the Volume Accumulation setup. Let me show you with the Volume Profile here.

If you look at this rotation, followed by this strong buying activity, you can see that massive volumes were traded here in this rotation. Basically, what happened was that there was a downtrend, then buyers started to accumulate long positions and pushed the price upward. This is a very important place for those buyers, and the heavy volume zone begins here. So, if there’s a pullback at some point in the future—it doesn’t need to be soon, it could be today, tomorrow, or even next week—when that pullback happens, the buyers from this zone will likely want to defend this place, as it is clearly important for them. They may try to push the price upward from there again.

Alright, so that’s the long on EUR/USD. If you look at this line, this gray line here, it is the first deviation of the weekly VWAP from the previous week, starting calculation here. It ended the calculation at our level, which adds strength to the level. Alright, that’s about the EUR/USD.

Oh, one more thing: I was also looking into this area of recent activity. Let me draw a line here—this could potentially be a support level as well. This level is around 1.1 and is based on the volumes formed within the uptrend zone, as well as the fact that the price moved past these two rejections. Basically, because the price reacted to this zone in the past, it means this was a resistance. And when the price passed that resistance, it became a support. So, based on this price action setup, this is also a support. We have heavy volumes here, so this could prove to be a strong level to trade from as well.

Right now, I’d like to see more price action above that level, because if there is a sharp reversal like this, it could indicate aggressive sellers, and I don’t want to see that. I want to see buyers pushing the price upwards or rotating above that level. Then, this could become a valid level to trade longs from. I’ll want to see confirmation on the Order Flow to take this level. The reason is that if you look here, this is where sellers became very aggressive, making a strong rejection and pushing the price downward. We are heading into the general zone where that rejection happened. If the sellers who created this become aggressive again, they may try to push the price downward. So, if I see signs of that, I won’t take this long. That’s why I’m saying I’ll want to see confirmation on the Order Flow around this level to be sure that buyers are jumping in and pushing the price upwards.

Alright, that’s it for the EUR/USD. Let’s now go over to the next trading idea, and the next one is on the ES. This is a 30-minute chart of the ES, which is the S&P 500 Index, but it’s futures. The level I want to talk about here is at 5630, and it’s based on a Volume Profile setup called the Trend Setup. You use this when there’s a trend, and you apply the Volume Profile like this over a trend area. As you can see, there is this heavy volume zone that clearly stands out, indicating a place where buyers who were pushing the price upward in this uptrend were adding to their long positions before pushing the price even higher. This is an important zone for the buyers, and if there’s a pullback, they’re likely to push the price upward from there again.

If you’re familiar with Smart Money Concepts and Fair Value Gaps, this level is also at the beginning of a Fair Value Gap. This is the Fair Value Gap right here, and the level is at the beginning of that gap, which adds strength to the level. Additionally, the price made a strong reaction near that level, meaning it worked as resistance in the past. When the price passed that resistance, it became a support. Again, this is a price action setup that I like to trade. There was also another reaction to that level here, so as I was saying, it was a resistance, and now it’s a support. Combine that with the volume profile zone here, and you have a strong level to trade from. Now, you just need to wait for the pullback and take it from there.

Alright, that’s for the ES. Let’s move to the NQ, where there’s a very similar level. This is a 30-minute chart of the NQ, and as you can see, these two charts are very similar. Let me draw the Volume Profile the same way as I did on the ES. Here, you can see that there’s a significant heavy volume zone created within this uptrend. The logic is the same—we have buyers who were adding to their long positions here when the price was first going up. The beginning of that heavy volume zone is our level at 19,560. We also have a Fair Value Gap here—let me zoom in and show you. This is the Fair Value Gap, and our level is at the beginning of that gap and the heavy volume zone. These are the reasons I like this level and want to trade from it. We need to wait for the pullback, and when the price reaches this zone, we can take a long from there.

Now, if you’d like to learn more about Volume Profile, VWAP, or Order Flow trading, head over to my website, Trader-Dale.com. If you click the button that says “Trading Course and Tools” it’ll take you to a page where you can get my trading education and custom-made trading tools. There’s the Volume Profile Pack, which will teach you everything about Volume Profile trading, and below that, the Order Flow Pack, focusing on day trading with Order Flow. Both packs also provide you with my custom indicators, like Volume Profile, VWAP, and Order Flow. If you’re interested in getting both packs together at a discounted price, you can get them here—both the Volume Profile Pack and the Order Flow Pack together for only $697.

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. The name of the person who won the contest is now displayed on your screen. Congratulations to the winner! I’ll do another contest for next week. To participate, just 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 about it. Thanks for watching the video, and I look forward to seeing you next time. Until then, happy trading!