Video Transcript:
In this quick video, I’m going to talk about gold price delivery for today, May 28th, 2025. What I’m going to do is actually blend two concepts together—one is Smart Money and the other is Volume Profile—and I’m just going to talk about my analysis of the price action of gold today.
The key Smart Money concepts that I’m going to be using in this video are higher time frame bias, drawn liquidity, dealing ranges, fair value gap, and order block. One of the key Volume Profile concepts I’ll be using is high volume nodes. This is a daily chart of gold, and I’m using GC1, which is the gold futures contract.
To talk about the broader draw on liquidity, I’ll have to draw some dealing ranges. A dealing range is a concept where I draw the range from low to high. We see that the price retraced below this equilibrium green line, which is essentially the discount. Smart Money tends to buy in discount zones. So, the price came into discount, and then Smart Money started to buy.
As the price began to expand, there were two bullish PD arrays. First, there’s a bullish fair value gap, and second, there’s an order block. Let me just change this color and label it a bullish order block. Now, the price is trading above these bullish PD arrays, which will likely act as support for the price action.
Given that premise, my draw on liquidity for gold is higher.
Now, earlier today, May 27th, the price began to move with a big black candle. The way I’m looking at this price action is as a retracement to run some sell-side liquidity, and then I expect the price to expand again—because my bias on gold is higher.
Let’s now zoom into this price action from the low to the high on the hourly chart. On the hourly, you can see the daily high for May 25th and today’s price action. You also see the daily low for May 22nd. If you follow the concept of liquidity, you know that just below the daily low is a lot of sell-side liquidity—external liquidity. So, today’s price action was essentially about retracing, running the sell-side liquidity, and then expanding.
Now, how do I bring in the volume analysis and blend the concepts?
If I look at this low to high on the daily chart—the daily range—and I draw a Volume Profile from this low to this high, you’ll see two very distinct high volume nodes. One is here, and the other is here. These are nothing but high volume nodes. When the price is trading above these high volume nodes, they act as support. This entire price fractal is currently trading above them. So, we’re looking at this particular high volume node as a support area, where the price may reverse.
If I drag this a little, you’ll see it is very close to where the daily low was. Since my higher time frame draw on liquidity is up, this price action is nothing more than a run on sell-side liquidity on the daily chart. I’m using Volume Profile in conjunction with the sell-side liquidity, which served as the target for the retracement—and it all aligns.
If I now draw another dealing range—for those of you who follow Smart Money, you know how effective this can be—you’ll see that the price did trade to the equilibrium line. Now it might go back and forth, but as I said, my draw on liquidity is higher, so I expect it to go up.
One other thing I’d like to point out is that within this same area, there’s another daily low—right here. If you look closely, these are the daily lows I’m referring to. So, there’s another daily low right here, marked with this line.
One of the possibilities is that the price might move back and forth and run this liquidity one more time—since it has already traded to the equilibrium—before expanding again. But regardless, the higher time frame draw on liquidity remains higher.
Again, if this happens, you’ll see how this high volume node plays a key role, giving us a sense of where the maximum volume has been traded—running the sell-side (which is essentially manipulation), then reversing in the direction of the liquidity draw.
I know I’ve covered a lot of concepts here, but I just wanted to blend these two ideas—Smart Money and Volume Profile—and share my analysis on gold. You can apply many of these Smart Money concepts in conjunction with Volume Profile to indices and other asset classes as well. I do plan to bring more videos in this series, but this is the first one.
All right, I hope you liked it.
Hey everyone, it’s Dale here. I hope you enjoyed the video. If you’d like to trade alongside me and our team of prop firm funded traders every day, then click the link below the video and hop aboard. We’re looking forward to trading with you.
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