Video Transcript:
Hello, everyone! It’s Dale here with a new weekly trading ideas video. Just a quick note before we jump into the charts—I’m currently running a special Halloween sale on my website. If you go to my website, Trader-Dale.com, and click the button that says “Trading Course and Tools” it will take you straight to the special page where you can get my best educational and indicator packs at a massive discount.
There’s the Volume Profile Pack, which will teach you everything about Volume Profile trading, the Order Flow Pack, which focuses on day trading with order flow, and the VWAP Pack, which focuses on VWAP trading. There’s also a very special deal at the bottom of this page where you can get all three packs together for a massively discounted price of $597 until the end of this month.
Alright, that’s the special Halloween sale. Let me now switch to the charts and talk about the trading ideas.
What you see before you is the NinjaTrader 8 platform with my custom-made Volume Profile and VWAP indicators. This is a chart of the ES, which is the futures of the S&P 500 index. This is a 30-minute time frame. What I want to show you here is this support level at 5806.
Now, if you look just at the price action, it doesn’t really show any support, right? It doesn’t really indicate that this could be an interesting level to trade from. But it’s a sort of combo here.
The first thing is, if you look at the volumes, we have a heavy volume zone here—not particularly strong—but when you combine it with a price action setup, like the one here, with other confluences, this level becomes much stronger than it appears on the Volume Profile alone. So, the first thing is this bump on the Volume Profile. Then, if you look here and here, the price was reacting very nicely to this level in the past. That means it was a resistance in the past, right? Because of those two reactions, the price went upward and broke past that resistance, turning it into new support.
This adds massive strength to that volume-based level. If this level were based solely on volumes, it wouldn’t be that strong. But with this confluence, it becomes much stronger. Let me zoom in a bit so you can see it better.
There’s also a fair value gap. On Friday, I published a video where I explained it, so you can watch that video on YouTube or on my website in the video section. This is the fair value gap highlighted in green, and the level is at the beginning of that fair value gap. The fair value gap is a concept from Smart Money trading, and I like to use this together with my Volume Profile setups.
Alright, so that’s the reasoning for this long level. What we need to do now is wait for the pullback, and when the price comes to this level, we can take it from there. Ideally, if you have order flow software, you can use it to confirm your trade entry and improve your trade exits.
So, that’s for the ES. Let’s move on to the next trading idea. The next one will be a level on USD/JPY.
This is the USD/JPY. As you can see, in the last week there wasn’t much to trade because there was a rotation. But before that, there was very strong and aggressive buying activity caused by macro news. And before that, there was a heavy volume zone. Let me zoom in a bit so you can see it better.
These are the heavy volumes I’m talking about. From this heavy volume zone, the price shot up first. This is where buyers were active, building up long positions before pushing the price higher. Now, this is similar to the previous case on the ES, where the volumes aren’t super heavy, but in this case, we have this huge fair value gap that massively adds strength to that level. The whole green zone is the fair value gap, and I like to trade from the beginning of the fair value gap, which is exactly at our level of 146.63.
If it were just the volumes, I wouldn’t trade this. But because of the fair value gap, this level becomes much stronger. It’s always about the confluences or combos that make strong levels.
Alright, that’s for USD/JPY. Let’s move on to the next trading idea, which will be on USD/CHF.
This is the USD/CHF, and here we have a very similar scenario to USD/JPY. What we have here is this fair value gap, and the beginning of that fair value gap is here, at this black line, which is at 0.8521.
We also have a heavy volume zone here at the beginning of a strong buying activity. This is the heavy volume zone, and this is the strong buying activity. These volumes tell us about strong buyers accumulating long positions before pushing the price higher. You can actually look at this zone from the beginning of the day. During this rotation, those heavy volumes formed, followed by the strong buying activity.
This tells us that strong buyers accumulated long positions here, and these buyers are likely to defend this area. So, we just need to wait for a pullback. When it occurs, we can take it from there because chances are that the buyers who pushed the price aggressively before will become active again at this important level and will want to push the price up from there again.
Now, 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 hold 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 about it. Thanks for watching the video, and I look forward to seeing you next time. Until then, happy trading!
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