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Volume Profile Trading Ideas – 24th June 2024


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Video Transcript:

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. This is a 30-minute chart of the EUR/USD, and I would like to talk about this newly formed resistance which formed on Friday. I published this resistance in the members’ area, and it is at 1.0715, based on a heavy volume zone followed by a sharp sell-off on Friday.

What this is telling us is that sellers were building up their short positions here and then manipulated the price downwards. This is the beginning of that heavy volume zone and an important place for the sellers because it’s where the price shot downwards. They are likely to defend it because they placed a lot of their shorts there. When there’s a pullback to this level, chances are there’ll be a reaction as the sellers from here are likely to defend this place. When the price comes close to this area, I’ll open up the Order Flow software to confirm the trade entry. What I want to see is sellers jumping in, confirming that they are likely to push the price downwards. Using order flow like this can improve your trade entries and exits. If you have order flow, I definitely recommend using it for trading confirmation, and if you don’t have it, you can enter the trade when the price reaches this level. So, watch out for this one.

Let’s now go to the next trading idea. The next one will be on the USD/JPY. There’s a strong uptrend in the USD/JPY, and within that uptrend, if you use the volume profile indicator, you can see a really heavy volume zone here. This is where I have my long level at 159.002. This heavy volume zone is likely to react if there’s a pullback. I’ll wait and watch this pair; if there’s a pullback, I’ll take a long from here. The heavy volume zone represents buyers pushing the price upwards, and if there’s a pullback, those buyers should become active again and defend this place. This is a volume profile trend setup that I like to trade when there’s a trend like this one.

Now, let’s move to the next trading idea, which is on the USD/CHF. This is a 30-minute chart of the USD/CHF. The level I have here is a support at 0.8841. If you use the volume profile over this rotation area, you can see that massive volumes were traded here, and from this heavy volume zone, a strong trend started. This tells us that buyers were active here, building up long positions, and pushed the price up first. If there’s a pullback in the future, chances are there’ll be a reaction as the buyers from here are likely to defend this place.

I also wanted to show you one more thing. From the recent VWAP webinar, I showed a setup where you anchor the VWAP to the end of the heavy volume zone and the start of a trend. Anchor the VWAP to this candle, and see how beautifully it works as a support and how the price reacts. This is how the setup I showed in the webinar should look. If you watched the webinar and started to apply this setup to your trading, you might have taken those trades, and they might have been very nice ones.

If you are interested in learning more about volume profile, order flow, or VWAP trading, head over to my website, trader-dale.com Click on “Trading Course and Tools” and it will take you to a page where you can browse my trading education and tools. The newest one, released a week ago, is the VWAP pack, which will teach you
everything about VWAP trading and provide you with all the indicators and support you need. Check out the video there for more details. If you are interested in volume profile trading, go for the volume profile pack. If you are interested in day trading with order flow, go for the order flow pack. You can also get all three packs together at a discounted price.

Before I wrap up the video, 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 Trading View platform. The name of the winner is displayed on your screen now. Congratulations to the winner! I’ll do 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 the video, and I’ll be looking forward to seeing you next time. Until then, happy trading!

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