Video Transcript:
Hey everyone, it’s Dale here. Welcome to this video where I’ll show you the best Volume Profile levels to trade this week. We’ll take a look at EUR/USD, AUD/USD, and also at GBP/USD. So, let’s get to it.
What you see before you, this is the NinjaTrader 8 platform with my custom-made Volume Profile and VWAP indicators. And this is a 30-minute chart of EUR/USD. There was quite a strong trend here on Friday, and I want to trade this. I want to participate in this trend, and what I do is I use the Volume Profile like this to look at how volumes were distributed in that trend, and I want to trade from heavy volume zones. There’s a heavy volume zone standing out in here. This is quite an important one. As you can see, those volumes are quite heavy here, and it represents a place where buyers were active, adding to long positions as they were pushing the price up. All right, so that’s what I want to trade. I want to trade from that. So I’m waiting for a pullback, and I will want to go long from there. That level here is at 1.1792.
So that’s the Volume Profile setup here, but there’s also more. If I zoom out a bit, then you can see that the price was bouncing around this area in the past as well. Not exactly to the level, but around this area. And that means that in the past, this area worked as resistance, which, when the price broke above it, turned into support. All right? So this is the thing that adds strength to our level here. You can also notice that you have a fair value gap here, a little fair value gap in here, and also a little fair value gap in here. When they are so close to each other like this, then I look at it as if this was one big fair value gap. All right. And our level is at the beginning of that fair value gap, which also adds strength to it. Okay, so that’s for EUR/USD.
Let’s now take a look at AUD/USD. So this is AUD/USD. In here, we also have a strong trend, and the idea of trading this will be very similar to the idea of trading EUR/USD that I showed you before. If you look into the trend area, then you can see that there are those two heavy volume zones standing out, and those are the zones that I’ll want to trade. So my first support level is at 0.6842. The second support is at 0.6805.
So the ideal scenario is a pullback to the first support and a reaction, and then a pullback to the second one and a reaction. Okay? Those heavy volume zones represent places where buyers were adding to long positions, and when the price reaches those places again, those buyers should become active again and push the price upwards from there again, right? So that’s for AUD/USD.
Let’s now check out GBP/USD. GBP/USD is also rather similar. We have a strong uptrend, and within this uptrend, we have a couple of heavy volume zones. We have this one and this one. So those are the heavy volume zones that I want to trade, and the logic is the same as on AUD/USD or on EUR/USD. Just wait for the pullback to that heavy volume zone and go long from there. The first long is at 1.3607. The second heavy volume zone begins here, and the support is at 1.3531. So ideally, we’ll see the first pullback in here and a reaction, then another pullback to the second level and a reaction. This is how I plan to trade this. I have limit orders there, so I won’t miss those trades. I’ll simply wait until those levels get hit and then trade them with those limits.
Okay, so that’s about that. That’s the plan. If you guys want to learn more about Volume Profile trading, and if you want my custom-made Volume Profile and other indicators, then you want to head over to my website. It is at trader-dale.com. And if you click “Trading Course and Tools” in here, then you can check out my trading education and indicator packs. There’s the Volume Profile Pack, Order Flow Pack, VWAP Pack, and Smart Money Pack. If you scroll down a bit, you can get all those packs together in one combo. It includes all the packs for a discounted price.
Now, before I wrap the video up, I’d like to announce the winner of a 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. [music]
And what I’ll do next is 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. And next week, I’ll randomly pick one person and give them this set of custom-made indicators. So that’s about that. Thanks for watching the video, and I’ll be looking forward to seeing you next time. And until then, happy trading.
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