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 the ES, which represents futures for the S&P 500 Index. This is a 30-minute chart, and the first trading idea is here on the ES. It is a support level right here at 54.92.
Now, if you look at the Volume Profile within this uptrend zone, the support isn’t very easily visible because there’s just a small volume zone at our level, and the heavy volumes are actually in here. But the reason why I have this long level is not because of the volumes. The reason is this very strong and aggressive buying activity that starts from this place. If you are familiar with Smart Money Concepts, this is something called a Fair Value Gap, which indicates the aggressiveness of buyers. This is where that aggressiveness starts, and that’s the place where we have the level. Also, as you can see, the price was reacting to this level in the past, which means that it was a resistance before and turned into a support when the price broke through that resistance. So, it is a combination of the Fair Value Gap and the resistance-becoming-support setup. The heavy volume zone also begins here, adding at least a little strength to this level. Altogether, I think this makes a nice and solid level to trade from.
What we need to do now is just wait for that pullback, and if it occurs, we can take it from there. If you want to improve your trade entries and exits, you can use Order Flow around this area when the price comes close to this level. This will help you better time your trade entries using some of the Arlow confirmation setups and also improve your trade exits.
Alright, that’s the trading idea on the ES. Let me now go to the next trading idea, which will be on the AUD/USD. This is a 30-minute chart of the AUD/USD. The level here is actually one that I published yesterday in the members’ area. It is at 0.6635, and it is based on a Volume Profile setup called the Trend Setup. This setup is called the Trend Setup because you use it when there’s a trend, like this one. You use the Volume Profile over the trend to look into the volume distribution within the trend.
At first glance, you can see that there are heavy volumes here in this area. This is the beginning of that heavy volume zone, and that’s where I have the level. This indicates that the buyers who were pushing the price upward were adding to their long positions here. So, this is a very important area for the buyers, and that’s why they should defend it in the future. If there’s a pullback (though I’m not saying there necessarily will be one), chances are that there’ll be a reaction right at this level. Additionally, there’s also that price action setup that I like to use so much: the resistance-becoming-support setup. As you can see here and here, the price was reacting very strongly to this level. In the past, this was a resistance, and when the price broke past it, it turned into a support. So, when the price comes to this support, chances are there’ll be a reaction. Again, if you want to improve your success rate, you can use Order Flow around this zone to better time your trade entries and exits.
Now, let me go to the next trading idea, which is very similar to this one. Let’s move on to the NZD/USD. Again, this is a 30-minute chart, and we also have an uptrend here. Let’s do the same thing as on the AUD/USD—use the Volume Profile over that uptrend. If we do that, you can see that there’s a heavy volume zone standing out. That heavy volume zone begins here, and that’s my level at 0.628. The logic is the same as with the AUD/USD: buyers who were pushing the price upwards were adding to their long positions here and then continued to push the price even higher. So, if there’s a pullback, chances are that the buyers will become active again here, defending this heavy volume zone, which is clearly an important area for them, and they’re likely to push the price upward from there again. That’s why this is a support level.
In the past, this support worked as a resistance—let me delete all that. It worked as a resistance because the price was reacting to that level here, here, and here, with those small reactions in between. So, this was a resistance, and when the price broke past it, the resistance turned into a support. That’s the same setup I showed you on the AUD/USD. Again, we just need to wait for that pullback, and if it occurs, we can take it from there.
If you’re interested in learning more about Volume Profile, VWAP, or Order Flow trading, I recommend visiting my website at trader-dale.com If you click the button labeled “Trading Course and Tools” it will take you to a page where you can explore my trading education and custom-made trading tools. There are three main packs: the first one is called the Volume Profile Pack, which focuses on teaching you everything there is about Volume Profile trading. The second one is the Order Flow Pack, which focuses on day trading with Order Flow. The third one is the newest pack, called the VWAP Pack. Actually, it should say VWAP—what a mistake! I need to fix that. Anyway, it is the VWAP Pack, and it focuses on trading with VWAP and Anchored VWAP. If you scroll down a bit, you can get a combo of these packs, either the Volume Profile and Order Flow Pack, or all three packs together at a massively discounted price.
Before I wrap up the video, I’d like to announce the winner of the contest we had last time. The prize for the contest was my custom-made Volume Profile and VWAP indicators for the TradingView platform. Right now, you can see the name of the person who won the contest on your screen. Congratulations to the winner!
What I’ll do next is announce another contest for next week. The only thing you need to do to participate in this contest is leave a comment below this video, which I’ll publish on YouTube. Next week, I’ll randomly pick one person to win this set of custom-made indicators.
That’s all for now. Thanks for watching the video, and I look forward to seeing you next time. Until then, happy trading!
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