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 chart you’re looking at is the USD/CAD 30-minute chart, and what I want to talk about here is a resistance level. This one is at 1.3633, and it is based on a Volume Profile setup called the Rejection Setup.
A rejection is when the price moves in one direction, then suddenly reverses and goes the other way. What you need to see within such a rejection is a significant volume zone, like this one. This tells us that sellers became active here. As the price was moving up, sellers started to jump in, selling aggressively, and eventually pushed the price down. This zone, this volume bump, is the most important area for those sellers because this is where they placed most of their shorts. My level is at the beginning of that volume bump, at 1.3633, and when the price returns to this level, the sellers from here will likely want to become active again and push the price down from there once more.
Now, we just need to wait for that pullback and take it from there. By the way, if you look at this rejection right here, it was also a strong rejection, but I didn’t trade it. Let me show you why. There simply wasn’t any significant volume bump. If you compare this zone to this one, you can see it very clearly—the volume bump here versus no significant volume bump there. That’s why I only want to look for trades based on significant volume bumps like this one.
By the way, if you look at EUR/USD, there were a couple of examples of this, but unfortunately, there was macro news that swept through those rejections, and I never trade during macro news, so I wasn’t trading that. This was a rejection with heavy volumes here. I had a long level there that I wanted to trade from, but I didn’t because of the macro news. See, there was this heavy volume zone within the rejection, so this was my level, but due to macro news, no trade from here. There was also a rejection here, this strong rejection with those heavy volumes. I had a level there—let me draw a line—but when I saw this rejection, I discarded the level because it seemed like an early reaction to this zone.
The next rejection in line is this one. The price is heading strongly against it, and if it continues like that and I don’t see any confirmation on the order flow, I won’t jump into that trade. But if I do see confirmation on the order flow around this area and I see strong buyers jumping in, I’ll jump in as well and go long because this seems to be a pretty solid level to trade from.
Now, let’s move on to the next trading idea, which will be on USD/JPY. This is a 30-minute chart of USD/JPY, and the level I want to discuss is this one at 142.30. This level is based on a Volume Profile setup that I call the Volume Accumulation Setup. With this setup, you have a heavy volume zone, which is a place where volumes were accumulated, and from there, strong buying activity started. This tells us that buyers were active here, building up long positions, and then they pushed the price upwards again. If there’s a pullback, the buyers from here will likely want to defend this place, which is clearly important to them, as you can see from those heavy volumes. They’ll want to react here and push the price up again.
By the way, this high is also pretty weak. I think a lot of liquidity will be sitting above those two swing points, so this would also be a nice level to aim for. Now, in the live trading room that we run every day, I got a question about the volumes here—whether those volumes aren’t too weak to trade. In my opinion, those volumes are not too weak to trade from. The thing is, with these types of Volume Profile trades, it’s not just about the strength of the volumes, like how heavy the volumes are, but also about other factors and the bigger picture. In this case, we have volumes here—not particularly heavy—but from this place, we have strong buying activity, indicating strong buyers commencing their buying activity from here.
Also, we have a fair value gap starting from here. This is the fair value gap, a concept from Smart Money. In a long trade scenario, I like to trade from the beginning of this fair value gap, which also adds strength to that level. So it’s not only about the volumes but also about other factors, and all this paints a picture that tells you which levels are strong to trade from, like this one. This is definitely a strong level to trade from.
Now, let’s move forward and check out the next trading idea. It will be on the CAD/JPY. This is the CAD/JPY, and the level that I have here is 104.94. It is based on the same setup as I just showed you on the USD/JPY. Again, we have an accumulation zone where heavy volumes were accumulated, which is here, and from there, very strong and aggressive buying activity took place. You can see that this activity is very aggressive because of those green candles originating from this heavy volume zone. Also, we have that fair value gap right here—between the high of this red candle and the low of this green candle—so that’s the gap. I like to trade from the beginning of that gap in a long trade scenario, which aligns nicely with those heavy volumes here.
So, it’s the same thing as with the USD/JPY—we just need to wait for that pullback and take it from there because chances are the buyers from here will want to defend this place and push the price upwards again.
Now, if you’d like to work directly with me and our other professional prop firm traders, click the link below this video (uploaded on YouTube), which will lead you to this page. Here is a video where I’ll explain how we can transform you from wherever you are now as a trader to being a professional prop firm-funded trader in less than 12 months. Below the video, you can book a direct one-on-one call either with me or with another member of our team, who will walk you through the service to see if it is the right fit for you.
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 TradingView platform. Right now, on your screen, you see the name of the person who won the contest. Congratulations to the winner! What I’ll do next is another contest for the next week. To participate, simply 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.
So that’s about it. Thanks for watching the video, and I look forward to seeing you next time. Until then, happy trading!
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