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CRUDE OIL: Volume Profile & VWAP Analysis (+ Trade Recap)


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Video Transcript:

Hello, Everyone; it’s Dale here with New Day Trading Analysis. Today, I’ll talk about crude oil. So before you see the Ninja Trader 8 platform with my custom volume profile and VWAP
indicators. This is CL futures’ 30-minute chart, and the level that I want to show you is actually pretty close to the current price. The level is at 79.8, and it is based on a significant heavy volume zone that formed within a strong uptrend. So, the uptrend that I’m talking about here is this strong uptrend here, and if you use the volume profile over the whole uptrend, then the
heaviest volumes in that uptrend were here. Those volumes were formed in this little rotation here.

Now, without a volume profile, you wouldn’t even notice that, right? That this is an important zone, but looking at the volumes, it really is. So, the beginning of that heavy volume zone is
here, that’s where I have the level, and it is likely that if there’s a pullback (and I hope that there will be a pullback), then the buyers from here who placed all those volumes here will want to defend this place and push the price upwards from there. Alright, so this is a volume profile setup which I call the trend setup. I trade it when there’s a trend, like for example this
one, and I look for significant volume bumps like for example this one to trade pullbacks from. Alright, so this is a typical case of the trend setup. What I really like about this one, about this level, is that it also aligns with the first deviation of VWAP. That’s this gray line here, as you can see. Currently, the first deviation of VWAP—by the way, this is a weekly VWAP starting here at the start of the week. So, the level, the start of the heavy volume zone, aligns with the first deviation of the VWAP. And when the market is trending like the crude oil now, and then it likes to react to that first deviation of VWAP.

You can see it in all those instances where the price was respecting the first deviation of the VWAP. So, ideally, the same thing will occur here; price will react to VWAP, also to those heavy volume zones, and go upwards.

Now, one more thing I wanted to show you here in this video was a prediction from yesterday on the GBP/USD. The level which I showed you was this volume cluster in combination with those instances where the price was reacting to this zone. So, this was the long level I published yesterday. I sent it in an email yesterday, and this was the initial reaction, very spot on, a little bit over 10 pips. And if you wanted to get more out of this trade, then your chance was to hold onto the trade and take this very nice movement right here.

Alright, so that’s the prediction from yesterday. I hope you guys were trading it and made some nice profits on it. Now, if you would like to pick such trades yourself and learn everything about volume profile trading, then head over to my website. Currently, I’m running a special sale on my volume profile pack. So, if you go to trader-dale.com and click this button, then it will take you right to that sale page. The sale, by the way, will be ending in 2 days and 20 hours from now, and it includes a huge discount on the volume profile pack, which will teach you everything about volume profile trading and provide you with my custom-made volume profile indicators.

Then there’s also a discount on the order flow pack, which will teach you everything about day trading with order flow and provide you with my custom-made order flow and volume profile indicators. If you’re interested in getting both, then scroll down a little bit, and there’s the special deal where you can get both the volume profile pack and the order flow pack in one huge bundle, which is currently massively discounted but only until the end of the month. Right, so that’s about that. Thanks for watching the video, I hope you liked it, and I’ll be looking forward to seeing you next time. And until then, Happy Trading!

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