Video Transcript:
Hello everyone, it’s Dale here with a new weekly trading ideas video. Today we are going to cover three trading pairs and three trading ideas. We’ll cover GBP/USD, then AUD/USD, and then USD/CAD. Let’s start with GBP/USD.
What you see before you is the NinjaTrader 8 platform with my custom-made Volume Profile and VWAP indicators. This is a 30-minute chart of GBP/USD. What I want to talk about is a newly formed support that appeared earlier today. The support is here at 1.3410. Let me now tell you why I think this is a strong support.
If you first take a look here, this is Friday, and right here was the high of Friday. That’s an interesting point to trade from. But that’s not all. If you use the Volume Profile over the recent uptrend—this being the recent uptrend—what really stands out is this heavy volume zone. It represents a place where buyers were adding to their long positions as they were pushing the price upwards. So, we have heavy volumes, we have the high of Friday, and also the price was reacting here in the past. That means this was a resistance, and when the price broke past it, it turned into a new support. A couple of things are telling me this could be a strong support. And one more thing I forgot to mention—there’s also a Fair Value Gap (from Smart Money Concepts) highlighted in green. I like to trade from the beginning of the Fair Value Gap, which is right here. So, another thing telling us this is a strong support.
What we need to do now is just wait for the pullback, and when the price reaches this place, then go long from there. By the way, I also had a trade here just now, but I closed it a couple of moments ago. I was trading from the beginning of this heavy volume zone. It was a short from here, and I closed it right at that yellow line, which is the VWAP. So that short is already spent, but this long setup is still viable.
All right, so that’s for GBP/USD. Let’s now take a look at AUD/USD. What you see here is the 30-minute chart of AUD/USD, and I want to show you an important heavy volume zone that formed on Friday. This heavy volume zone, especially this volume peak, came right before a strong sell-off started. This tells us that aggressive sellers were manipulating the price and pushing it lower. That was on Thursday, and before that, those sellers were active here, accumulating their short positions. They rejected the higher prices with this little pin bar, and then the strong sell-off started.
My level is at the beginning of this significant volume cluster, at 0.6596. As you can see, there are also many Fair Value Gaps—this one, this one, this one, and then this big one. If they are stacked like this and close to each other, then I look at it as one large Fair Value Gap, beginning right here at our level at 0.6596. So, we have a heavy volume zone at the start of a strong sell-off—that’s one signal. The other signal is the beginning of the Fair Value Gap.
Another very important thing here is the weekly Volume Profile. This shows how volumes were distributed throughout the whole previous week. We have the weekly Point of Control right here. That means the heaviest volumes of the previous week were traded here. It’s very close to our level, and it adds strength to it. If you have the weekly Point of Control and from there a strong trend starts, then that setup is very strong. You wait for the pullback to the weekly Point of Control and then trade from there.
So, for all those reasons, I think this is a strong level to trade from. Right now, we just need to wait for a pullback and go short from there. Let me mention one more thing: this heavy volume zone. Normally, I would also trade a pullback to this heavy volume zone, but there was a weak high here, so it was riskier. It also got tested at the beginning of the volume zone. That’s why I wasn’t trading shorts from here—because it was already spent with this reaction, and the high wasn’t strong enough. Otherwise, I would normally take this trade.
All right, let’s take a look at the last trading idea, which will be on USD/CAD. This is the USD/CAD 30-minute chart. What I want to show you is this support at 1.3897. If you look at the volumes and how they were distributed throughout the whole uptrend, then you can see this zone really stands out.
What I like here is not only that there were heavy volumes formed within a trend, but also that we have this Fair Value Gap at the beginning of those volumes. This tells us that buyers were pushing the price up, adding to their long positions here, and then from this small rotation, they started to push upwards aggressively again, forming this Fair Value Gap. I like to trade from the beginning of a Fair Value Gap, which is right here at 1.3897. Right now, the price is slowly dropping toward the level. Hopefully, it will make the pullback, hit the level, and give us a chance to jump in long from here.
Right now, I’m waiting with a pending order here. When the price hits this level, I’m going to go long. There is a little downside risk: there’s a weak low here, which is not ideal. It would be better if there was a strong rejection of lower prices—for example, a wick purging liquidity below these candles. That would be the ideal scenario. But I still think this is a good level to trade from. It’s worth the risk, so I’m going to take this long from here.
If you guys are interested in learning more about Volume Profile trading and getting your hands on my custom-made Volume Profile indicators, head over to my website at TraderDale.com. If you click “Trading Course and Tools” it will take you to the page where you can browse my education and custom trading indicators. There are four packs: the Volume Profile Pack, the Order Flow Pack, the VWAP Pack, and the Smart Money Pack. You can get them separately or scroll down and get all of them together at a discounted price.
Before I wrap up the video, I’d like to announce the winner of last week’s contest. 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. 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 all for today. Thanks for watching, and I’ll be looking forward to seeing you next time. Until then, happy trading.
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