Video Transcript:
Hello everyone, it’s Dale here. Welcome to the new weekly trading ideas video. Today we are going to cover three trading pairs: EUR/USD, GBP/USD and USD/JPY. So let’s take a look at it. What you see before you is the NinjaTrader 8 platform with my custom-made Volume Profile and VWAP indicators, and this is a 30-minute chart of EUR/USD. What I want to talk about here is a resistance, and that resistance is at 1.1556. It is right here and it is based on a Volume Profile setup called the Volume Accumulation Setup. Let me show you. So first, what you need to see is a rotation—like for example this one. From that rotation, you need to see strong trend activity like this. What you do next is wait for the pullback to the beginning of a heavy volume zone, which should be in that rotation. You need to use the Volume Profile like this to see how the volumes are distributed in that rotation, and then you want to trade from the beginning of that heavy volume zone. As you can see, my resistance is right here—that’s more or less the beginning of the heavy volume zone. Now you just wait for the pullback, and when the price hits that level, go short from there because the sellers who were accumulating their short positions here and who pushed the price downwards should become active here again, because this level is important for them. We can tell by the volumes they placed here. So when the price hits this level, there’s a chance they’ll become active and push the price downwards again. Additionally, there’s also one more setup here—a Fair Value Gap. It’s highlighted in red—this area. That’s a Fair Value Gap, and in a short trade scenario, I like to trade from the beginning of the Fair Value Gap, which is right here. By the way, the Fair Value Gap is from Smart Money Concepts—it’s basically a three-candle formation: this candle, then this one, and this one. You can learn more about the Fair Value Gap in my other videos, but the important thing here is that this is the beginning of the Fair Value Gap and also the beginning of the heavy volume zone, which is a nice confluence. Right now we just wait for the pullback and go short from there. So that’s what I plan to do on EUR/USD. One more thing to notice here, not really related to this level, but the market opened with a pretty big gap right here, and I want to show you how the price reacted to that gap. Usually, it has a tendency to close the gap and then make a reaction—like this—and that’s exactly what happened on EUR/USD. Just wanted to mention that. All right, so that was EUR/USD. Let’s now go for GBP/USD. On GBP/USD we have the same setup as on EUR/USD. By the way, this is the 30-minute chart of GBP/USD, and in here we also had a rotation followed by strong selling activity. Again, what you do is use the Volume Profile like this to see how the volumes were distributed here, and as you can see, there was a heavy volume zone in this rotation from which the sell started. So what we want to do is wait for the pullback and go short from that heavy volume zone. The level is at 1.3494. The reason why I have the level exactly right here—if I zoom in, you’ll see it better—is that there’s also a Fair Value Gap. I highlighted it—it’s a small Fair Value Gap, but it’s there, and I like to trade from the beginning of the Fair Value Gap, which is right here at that level. Again, not really related, but on GBP/USD there was also a gap; price closed the gap and made a pretty solid reaction to the beginning of that opening gap—very similar to EUR/USD. All right, so that’s GBP/USD—same setup as EUR/USD. Let’s now go for USD/JPY. On USD/JPY, we have a pretty strong uptrend—it started on Friday—and within this uptrend, there was a significant place, which is this one, and it’s significant because there were heavy volumes traded here. What happened here was that buyers were pushing the price upwards, then they were adding to their long positions massively in here, and then the price went even higher. But this heavy volume cluster is very important because a lot of buyers were active here. So if there’s a pullback, there’s a chance the buyers from here will become active and want to push the price upwards again. This is a setup I call the Trend Setup. I trade it when there is a trend—like for example this one. You can also notice that there’s a little Fair Value Gap here, which adds strength to the level. By the way, there are actually two Fair Value Gaps—this one and this one. If they are that close to each other, I look at them as one big Fair Value Gap, and it begins right here at our level at 145.90. So we just need to wait for that pullback. If it occurs, then take it from there. Again, completely unrelated, but there was also an opening gap—price closed the gap and made a beautiful reaction. See, this is how price is supposed to react to opening gaps like those. So yeah, that’s about that. If you guys enjoyed the video, if you like how I trade with Volume Profile, then don’t hesitate to join us in one of my trading courses. Just go to my website—it’s at trader-dale.com—and if you click the button that says “Trading Course and Tools” it’ll take you to this page. Scroll down a bit, and you’ll see my trading education and indicator packs. There’s a Volume Profile pack, Order Flow pack, VWAP pack, and Smart Money pack. You can get those packs separately here, or if you scroll down a bit more, you can get all of them together in one big combo at a discounted price. Now, before I wrap the video up, I’d like to announce the winner of the contest we had last time. The prize of the contest was my custom-made Volume Profile and VWAP indicators for the TradingView platform, and right now on your screen you see the name of the person who won the contest—so congratulations to the winner! What I’ll do next is another contest for next week. The only thing you need to do to participate is leave a comment below the video (which I’ll publish on YouTube), and next week I’ll randomly pick one person to win this set of custom-made indicators. That’s about that—thanks for watching the video and I’ll be looking forward to seeing you next time. Until then, happy trading!
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