Video Transcript:
Hey everyone, it’s Dale here with a new weekly trading ideas video. I’m shooting this video a little bit earlier because I’m going to be away on Monday. So, right now the markets are not moving, but you’ll get the video in time, so everything should be fine.
Today, we are going to cover the British Pound, then we are going to cover GBP/USD, EUR/GBP, and we are also going to cover NZD/USD. So let’s take a look.
What you see before you is a chart of the GBP/USD. You are looking at a 30-minute time frame. The platform is the NinjaTrader 8 platform, and the indicators are my custom-made Volume Profile and VWAP indicators. What I wanted to show you on the British Pound is a newly formed support, which is right here at 1.3164. This support is based on strong buying activity that took place after the macro news on Friday. This is the macro news candle—it was the NFP news and also the unemployment news. It came as quite a surprise for the market, which is why there was this aggressive move. As you can see, my level is at the beginning of this strong buying activity.
If I show you the Volume Profile, you can see that there were some heavy volumes traded before this strong buying activity took place. This shows a place where buyers were building up long positions. So, what essentially happened here was that there was a downtrend, buyers started to buy in this area—you can see that on the Volume Profile with those heavy volumes—and then the macro news hit, and the price went aggressively up. So this is what happened on the British Pound.
The reason for placing the support here is that when the price makes a pullback, it’s likely that the buyers who reversed the price and placed those volumes here will become active again and push the price upwards from there. So that’s the idea behind the long trade on the British Pound. What we need to do now is wait for the pullback, and if it occurs, then take the trade from here.
Also, there’s another thing on the British Pound—a short level I wanted to talk about, which is right here. If I show you with the Volume Profile, it’s this heavy volume zone from which this strong downtrend started. As you can see, there are pretty heavy volumes here. If you look at the weekly profile—the gray profile on the left—you’ll see that this is actually the weekly Point of Control.
That means the heaviest volumes throughout the whole week were traded here. And from that weekly Point of Control, there was this sell-off. So, it’s a place where sellers were active, building their short positions, and from there they pushed the price aggressively downward. When there’s a pullback to this level, which is at 1.3357, it’s likely that sellers will become active here and want to push the price down again. So that’s a strong resistance level that I’ll definitely want to trade when the price comes to that area.
The next trading idea is on NZD/USD. This is a 30-minute chart of NZD/USD. As you can see, the scenario is a bit similar to the British Pound, as there’s also a downtrend followed by strong buying activity. So again, this is very similar to the British Pound.
The newly formed support is here at 0.5866. Let me show you something—if I use the Volume Profile here, we again have a significant volume cluster within the rejection. So again, very similarly to the British Pound, if the price comes back to this level, it’s likely that the buyers who reversed the price in this rejection and placed those volumes here are likely to push the price upward from there again. So that’s the idea behind NZD/USD. Right now, we just need to wait for the pullback to this level and then take the long.
The next one is EUR/GBP. What you see before you is the 30-minute chart of EUR/GBP. In this case, we are looking at a pretty strong uptrend. When there’s an uptrend like this, what I like to do is trade pullbacks to heavy volume zones—to significant volume clusters.
The level I have here and want to talk about is 0.8669. If I show you the Volume Profile, you’ll see that as the buyers were pushing the price upward, there was this significant volume cluster formed in this area. This means that the buyers who were pushing the price upward were adding to long positions here. As you can see, there was rather strong and aggressive buying activity right afterward, which is great. That’s what I like to see—I like to see a heavy volume zone followed by an aggressive movement like this, because it shows the strength and aggression of the buyers.
So, we have a strong support level here. What we need to do is wait for the pullback. When the price hits this level, then take the long from there. It doesn’t really matter how long it takes before the price reaches this level—it could be Monday, Tuesday, or even in a week or two. It doesn’t matter. The level stays where it is. When the price hits it, then it’s a long from there.
Now, if you guys are interested in learning more about Volume Profile trading, head over to my website trader-dale.com. Click on the button “Trading Course and Tools” and when you scroll down a bit, you’ll see my education and indicator packs. There’s the Volume Profile pack focusing on Volume Profile trading, Order Flow pack, VWAP pack, and Smart Money pack. You can get them separately, or scroll down further and get them all together in one discounted bundle—four packs for a discounted price.
Before I wrap the video up, 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!
I’ll also do another contest for next week. To participate, all you need to do is leave a comment below this video when I publish it 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’ll be looking forward to seeing you next time. Until then, happy trading.
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