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. The first trading idea will be on GBP/USD. This is a 30-minute chart of GBP/USD, and the level I want to talk about is this support right here. It’s at 1.3124, and it’s based on a couple of things.
Let me show you how the volumes were distributed at this level. If I use my Flexible Volume Profile here over this recent area, you can see that there were heavy volumes traded in this rotation, which took place before the strong and aggressive buying activity on Friday. These heavy volumes suggest that buyers were building up their long positions here, preparing for this upward move. With this up move, they manipulated the price to shoot upwards, and because of this strong buying activity, we know that buyers are active here, building up their long positions. If there’s a pullback at some point in the future, chances are that the buyers will become active again and push the price upward from there. This is the Volume Accumulation setup, one of my favorite Volume Profile setups.
Apart from that, you can also notice that there is a Fair Value Gap here. The Fair Value Gap, which is a concept from Smart Money Trading, basically starts here at the high of this small candle and ends at the bottom of this bearish candle. In a long trade scenario, the bottom of the Fair Value Gap is a very strong level to trade from. That’s another reason for this long level.
Furthermore, the price was reacting to this zone in the past—not exactly to the level, but to this zone. This means it was a resistance in the past, which turned into a support when the price breached that resistance. These are the reasons why I think this is a very strong level to trade from. Now, we just need to wait for that pullback and take it from there.
That’s it for GBP/USD. Let me now switch over to the next trading idea. The next one will be on USD/CAD. This is a 30-minute chart of USD/CAD, and here I want to talk about resistance. This resistance is at 1.3576, and it’s based on two things. First, if I use the Volume Profile to look at the volume distribution before, during, and after the trend, you can see that heavy volumes were traded before the trend started. The level I have here is at the beginning of that heavy volume zone, which is where my resistance is. In my experience, the chances of a successful reaction are higher at the beginning of the heavy volume zone, as seen here.
Additionally, this level worked as a support in the past, which, when the price broke below it, turned into this resistance. Also, there’s a Fair Value Gap starting here. In a short trade scenario, the highest border of that Fair Value Gap represents the resistance, which is very close to our level. So, this is a strong level to trade from. We just need to wait for that pullback, and if it occurs, take it from there. If you have Order Flow, you can use it to confirm your trade entry and improve your trade exits. However, even if you don’t have Order Flow, you can still enter at the first touch, as there’s a good chance the price will react at that level.
Now for the next trading idea, which is on NZD/CAD. This is a 30-minute chart of NZD/CAD, and here we also have the Volume Accumulation setup, consisting of a rotation where heavy volumes were traded, followed by strong buying activity. This indicates that buyers were active during this rotation, and the price moved upwards from there, showing aggressive buying. The level is at 0.8366, and when there’s a pullback, there’s a chance of a reaction because those strong buyers should act again.
One thing I wanted to show you here is the weekly Volume Profile, which shows how volumes were distributed throughout the whole previous week. The heaviest volumes, or the Weekly Point of Control, were traded at our level, which definitely adds strength to it and increases the chances of a successful reaction. Again, we need to wait for that pullback and then take it from there.
If you’re interested in learning more about Volume Profile trading, Order Flow trading, or VWAP trading, head over to my website, which is trader-dale.com. If you click the button that says “Trading Course and Tools” it will take you to a page where you can browse my trading education and custom-made trading tools. This one is the Volume Profile Pack, which will teach you everything about Volume Profile trading. This one is the Order Flow Pack, focusing on day trading with Order Flow, and this one is a new release, the VWAP Pack, which focuses on VWAP and Anchored VWAP trading. All these packs come with custom-made indicators, including Volume Profile indicators, Order Flow indicators, and VWAP indicators for various trading platforms. If you’re interested in getting all three packs together in a discounted bundle, you can get them all for $897.
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 a trading platform, and right now on your screen, you see the name of the person who won the contest. Congratulations to the winner! I’ll be running another contest for next week. The only thing you need to do to participate 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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