Volume Profile Trading Ideas & Tips – 22nd July 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 Volume Profile and VWAP indicators. The chart is the ES, which is the futures for the S&P 500 index, and it is a 30-minute chart.

What I want to talk about here is the resistance at 5647. This resistance is based on the weekly Point of Control from the previous week. If you look at the grey Volume Profile on the left, it shows how volumes were distributed throughout the previous week, with the heaviest volumes right here. This is the weekly Point of Control, where the heaviest volumes were traded during the previous week.

As you can see, most of these volumes were traded in this rotation, followed by a very aggressive sell-off. This indicates that sellers were active here, building up their short positions and pushing the price downwards. Because of this sell-off, we know that sellers were active. If there’s a pullback to this level in the future, it is likely that the sellers from here will become active again, defend this place, and push the price downwards once more.

So, the logic behind this resistance is clear. We need to wait for that pullback, and when the price reaches this zone, we can go short. To improve your chances, you can use the Orderflow software, if you have it, to better time your trade entry, confirm your trade entry, and better time your trade exit.

That’s it for the ES. Let’s now switch over to the next chart, which is the EUR/CHF. This is a 30-minute chart of the EUR/CHF, and we have a nice combo of two trading setups here. The first setup is a Volume Profile setup. Let’s take a look at this trend zone using the Volume Profile.

The Volume Profile shows the volume distribution throughout this zone, and there’s a significant volume cluster formed within this zone. The volume clusters here, for example, this one and this one, have already been tested, as you can see. So, I’m not interested in trading those anymore. However, this one hasn’t been tested yet, which means the price hasn’t made a pullback to it yet, so it is still active and likely to react as it did previously.

This volume cluster represents a place where sellers, who were pushing the price downwards in this downtrend, were adding to their short positions. Those sellers are likely to defend this place if there’s a pullback, causing the price to drop again.

There’s also another setup that adds strength to this level. If you look here, the price reacted very nicely to this level in the past. This reaction tells us that it was a support which later turned into resistance when the price moved past that support. This price action setup adds strength to our Volume Profile setup.

Now let’s move on to the next trading idea, which will be on the AUD/USD. But before that, a quick note about a sale on my website. If you go to my website, trader-dale.com, and click on “Trading Course and Tools” you’ll be taken to a page with the Independence Day sale. You can get my best educational and indicator packs at a massive discount. The Volume Profile pack focuses on Volume Profile trading, and the Orderflow pack will teach you everything about day trading with Orderflow. There are videos that show everything you will get in detail. If you are interested in both the Volume Profile and Orderflow packs, scroll down for a special combo offer for only $597.

Now, let’s switch back to the charts and talk about the next trading idea on the AUD/USD. This is a 30-minute chart of the AUD/USD. This level here, at 0.6722, is a level I published in the members area, which is part of the Volume Profile pack I just mentioned. The level is based on a Volume Profile setup, similar to the EUR/CHF setup.

In this trend zone, there’s a significant volume cluster. This cluster has already been tested, so I’m not trading it again. This volume cluster is strong because it stands out on the Volume Profile and because aggressive selling activities started here. For those trading with smart money concepts, this is the fair value gap, adding strength to this level. The beginning of this heavy volume zone is the place where you have the best chance of a successful reaction, so I’m trading from the beginning of this cluster.

We need to wait for a pullback, and when the price reaches this place, we can take it from there. You can use the OrderFlow software, part of the OrderFlow pack, to better time your trade entry and exits.

There’s one more thing I want to show you: a trade on Bitcoin. This is a 30-minute chart of Bitcoin, and the trade played out yesterday. Notice this trend zone within the 30-minute chart. There is a significant volume cluster here, the same setup as the AUD/USD. Let me draw a line at the beginning of the volume cluster. See the beautiful pullback and reaction to it

What was great about this trade was the first deviation of the VWAP, this gray line, being very close to the level. It added strength to the level because the price was moving above the first deviation of the weekly VWAP, indicating an uptrend. You trade pullbacks to the first deviation, like here, where the heavy volume cluster and first deviation align.

Additionally, the price made a sharp, nice reaction, indicating that this was a resistance in the past that turned into support. So, this was a combo of three trading setups aligning, giving a high chance of a successful trade.

Before wrapping up, 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. The winner’s name is now on your screen. Congratulations to the winner! I will hold another contest for next week. To participate, 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.

Thanks for watching, and I look forward to seeing you next time. Until then, happy trading!