🎯 Top Volume Profile Levels to Trade This Week – 4th November 2024

 🎯 Top Volume Profile Levels to Trade This Week – 4th November 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. Let’s start with the first trading idea, which will be on the AUD/CAD. You are looking at a 30-minute chart here.

If you look at how the volumes were distributed in the previous week, you can see this on the cumulative Volume Profile here on the left. The whole previous week showed a D-shaped profile, similar to the letter “D.” This pattern indicates a temporary balance between buyers and sellers. In such cases, where there is rotation and a D-shaped profile, the ideal trading strategy involves making trades from the extremes of the rotation. That means taking long positions from the bottom and short positions from the top.

Right now, we have a strong rejection that hasn’t been tested yet. This rejection represents a point where sellers pushed the price downward, but buyers stepped in and pushed the price back up. Within this rejection, if you apply the Volume Profile to the rejection zone, you’ll notice a key spot where buyers started to jump in before driving the price up. My plan is to go long from this support level at 0.9113, expecting a reaction at this level because these buyers should defend this area in the future. They aggressively placed a lot of their volume here, showing it’s important to them.

The reason I’ve chosen this exact level is due to the presence of a Fair Value Gap, a concept from Smart Money trading. I have an indicator here that shows the Fair Value Gap, beginning here and ending here. This entire zone is the Fair Value Gap, but I prefer to trade from the start of it, which, in this case, aligns precisely with the heavy volume cluster. If there weren’t a gap, I would probably go long from the start of this heavy volume zone, but because the gap is slightly higher, I’ll enter the trade a bit sooner.

I expect the opening gap to close soon since, in Forex, gaps like these typically close quickly. Once that happens, ideally, we’ll see more selling, and if there’s a pullback to this level, the plan is to go long from there. That’s the current plan for the AUD/CAD.

Now, let’s move to the next trading idea. Before that, a quick note about a brand-new service I offer. If you go to my website, TraderDale.com, and click the new “FTA” button, you’ll reach a page introducing the Funded Trader Academy. The Funded Trader Academy is a live trading room where you can trade daily with me and other prop firm-funded traders. There’s a video on the page that explains everything in detail. If you’re interested, you can book a direct call, and we’ll help determine if this service is right for you.

All right, let’s get back to the charts for the next trading idea, which is on the EUR/CHF. This is a 30-minute chart, and there’s a classic Volume Profile setup that I like to trade, known as the Volume Accumulation setup. For this setup, you look for a rotation, like this one, followed by a strong buying or selling trend. This movement could be due to macro news, which might be the case here, making it even better.

With this setup, examine the rotation area using the Volume Profile to locate heavy volumes, as we see here. This indicates that buyers were entering long positions and then pushing the price up aggressively. You want to wait for a pullback to this level and go long from there. As with the previous case, I’ve positioned my long entry level at the start of the Fair Value Gap. This green zone marks the Fair Value Gap, and it aligns with the heavy volume zone, creating a nice combination of two setups.

In fact, it’s a combination of three setups: the price was also reacting to this level in the past, meaning it was a resistance point, which we know because the price bounced off it. Now that the price has broken through, this resistance has turned into support, making it a strong level to trade from. We just need to wait for a pullback and, if it happens, take the trade from there. So that’s the plan for the EUR/CHF.

The next idea is on the NZD/CAD. This pair is similar to the first trading idea on the AUD/CAD. Again, we have a D-shaped profile from the previous week, which indicates a balanced profile and rotation. As mentioned, in such cases, you want to trade long positions from the bottom and short positions from the top of the rotation. Here, we have a good long opportunity within this rejection. Using the Volume Profile, you can see a heavy volume zone where buyers started to push the price up, reversing the sell-off into a strong upward movement.

As with the other examples, there’s a Fair Value Gap here, starting at 0.8278. We just need to wait for a pullback, and if the price reaches this level, it’s likely there will be a reaction.

By the way, since we discussed the opening gap on the AUD/CAD, there was also an opening gap on the NZD/CAD, which closed soon after. This is typical in Forex, as initial gaps are usually closed quickly.

Before wrapping up the video, I’d like to announce the winner of the last contest. The prize was my custom-made Volume Profile and VWAP indicators for the TradingView platform. The name of the winner is displayed on the screen. Congratulations to the winner! For the next contest, I’ll be giving away another set of custom-made indicators. To enter, simply leave a comment below this YouTube video, and next week, I’ll randomly pick one winner.

Thanks for watching, and I look forward to seeing you next time. Until then, happy trading!