Skip to main content

ES (S&P 500 Futures): Volume Profile & VWAP Analysis


Do you want ME to help YOU with your trading?

Learn my proven Volume Profile & Order Flow trading strategies! Get my proprietary indicators and start making progress. We even set the indicators up for you so you can hit the ground running TODAY!
Start Learning to Trade Now!

Video Transcript:

Hello, everyone. It’s Dale here with a new day trading analysis. What you see before you is NinjaTrader 8 with my custom Volume Profile and VWAP indicators. Today, I’d like to talk about the ES, which is the futures for the S&P 500 Index

So, this is the ES 30-minute chart, and I would like to show you two supports that formed yesterday. The first one is here at 5449, and the second one is here at 5438. Let’s start with the first one. This support is based on the strong buying activity that occurred yesterday. If you use the Volume Profile over that trend area, it shows a nice heavy volume zone here. Those heavy volumes are most likely buyers who were pushing the price up, adding to their volumes as they passed this area of highs. The price then continued upwards, but this zone is still important as buyers were very active here. For that reason, I’m looking to go long from there in case there’s a pullback. If there’s a pullback, chances are that those buyers will become active again and push the price upwards from there.

This support is not only based on this volume cluster but also on past price reactions in this general area. It worked as a resistance in the past, and that resistance turned into support when the price broke through. So, this new support is based on both price action and the Volume Profile setup, making it a two-setup combo pointing to this support. Now, we just need to wait for a pullback, and if it occurs, we’ll take it from there.

The second support is based on a Volume Profile setup, which I call the Volume Accumulation Setup. With this setup, you want to see a rotation where heavy volumes are accumulated, like
this one here. As you can see on the Volume Profile, heavy volumes were accumulated here. From there, there was strong buying activity, meaning buyers were building up long positions and then manipulated the price to move upwards. In an ideal case, there would be a pullback to the first support, a reaction, and then another pullback to the second support, and another reaction from there, as the buyers from here are likely to defend their long positions and push the price upwards again.

So, we need to wait for those pullbacks. When the price reaches those levels, we can either open up the order flow software to wait for a confirmation before jumping into the trade, or we
can jump into the trade right away as the price touches the level. Obviously, with order flow, you’ll have better trade entries and exits, but if you don’t have it, you can just jump into the trade because chances are there will be reactions at both levels.

Here’s one more thing I wanted to show you since I had a VWAP webinar last week. Let me show you some of the stuff I presented at the webinar. You can see a very significant swing point here. At the webinar, I mentioned that you should anchor VWAP to a significant swing point. So, let me anchor the VWAP to this candle, which created the low of this swing low. This is the swing low where I anchored the VWAP, and here you can see a beautiful pullback to that anchored VWAP and a long from there.

This is how the setup I showed at the webinar should look if you guys are trading it. You would have had a very nice trade from here. If you are interested in learning more about VWAP or Volume Profile, head over to my website at trader-dale.com & click on “Trading Course and Tools” and it will take you to this page. Currently, I’m running a special sale on my newly released VWAP pack. The VWAP pack includes 31 videos, my custom VWAP indicators for various trading platforms, and my custom Volume Profile indicators. There’s a video on the page that shows everything included in the pack in more detail.

If you are interested in getting all my packs—the Volume Profile pack, the Order Flow pack, and the VWAP pack—all together in one discounted bundle, you can scroll down a bit. Until this Friday, you can get them at a discounted price.

Alright, that’s about it. Thanks for watching the video, and I’m looking forward to seeing you next time. Until then, happy trading!

Comments

Post a Comment

Popular posts from this blog

How To Trade The Point Of Control (POC)

DEFINITION: Point Of Control (= POC) is a price level at which the heaviest volumes were traded. The most important thing that the Volume Profile indicator shows is the POC. I dare say that if you used Volume Profile only for the purpose of identifying the POC, you would be a way better and trader then 99% of the retail traders. No matter what trading strategy you trade. Why do I say this? Why is POC so important? Point Of Control is so important because it shows the place where the most trading took place – where the biggest trading positions were accumulated. POC shows the BIG guys! Who accumulates those huge trading positions? The BIG guys – that’s the big financial institutions like hedge funds, pension funds, huge banks, etc… It is those BIG guys who move and manipulate the markets. It would be a huge advantage to know where they placed most of their positions, right? The good news is th
Post a Comment
Read more

5 Character Traits of a Successful Trader – Tips & Tricks of the Pros!

 Maybe you are interested in trading, and you have taken the first step by researching on forex trading. You might also be currently trading but going through a tough time with your results in the markets and dealing with the recurrent autosuggestion, telling you how this journey might not be for you or you are not capable of achieving successes in this journey. It is essential to know that you are not alone in this feeling, and before you fall into the rabbit hole of depression, feeling like a failure in yet another skill you have chosen. Let me make it clear; the answer is YES, anyone can achieve success in trading , including you. It would only cost you a few character trait adjustments. Before we delve in, it is vital to point out that success in re
8 comments
Read more

Beginners Guide to Order Flow PART 1: What Is Order Flow?

DEFINITION: Order Flow is an advanced charting software which enables you to read all trading orders that are processed in the market. It helps to track the BIG financial institutions through the trades they make. Most people get confused when they open up a chart with Order Flow for the first time. There is no shame in that. Order Flow shows so many information and it is easy to get overwhelmed and confused if you don’t know what to look for! This Beginners Guide will teach you how to understand how Order Flow works and how you can use it in your trading! In this 1st part of the Order Flow Guide I will show you around the Order Flow interface. Footprints The Order Flow does not show standard candles, but it shows FOOTPRINTS . A footprint shows not only Open, High, Low, Close (as standard candles) but it also shows orders traded in that candle. Orders can be
Post a Comment
Read more