Skip to main content

🎯 Trade of the Week | EUR/JPY +200 Pips | Textbook Swing Trade


Do you want ME to help YOU with your trading?

Learn my proven Volume Profile & Order Flow trading strategies! Get my proprietary indicators and start making progress. We even set the indicators up for you so you can hit the ground running TODAY!
Start Learning to Trade Now!

Video Transcript:

Hello everyone, it’s Dale here with a new Trade of the Week video. In today’s video, I want to talk about a swing trade that I took on EUR/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 daily chart of EUR/JPY. I use the daily chart for all my swing trading analysis because it gives me the bigger picture.

What you can see on this chart is a strong uptrend on EUR/JPY. You can tell just by looking at it because it’s very clear, but there are a couple of things that add even more strength to that uptrend. The first thing was this huge gap. Usually, on currencies, gaps get filled, but if the gap stays open like here and the price just starts moving and forming a trend, then it means that the trend is very strong. The sellers didn’t even have the strength to fill the gap, and the buyers simply took over and started pushing the price up. That’s why I’m saying this is a strong trend.

The trade I want to show you here is a long trade from this dotted line. The level was at 182.88, and it was a long from there. This trade was based on the strong uptrend and also on the fact that there was a significant volume cluster in this small rotation. A volume cluster like this, when formed in an uptrend, means that buyers who are pushing the price up were adding to their long positions here. You can see that on the Volume Profile. This is a significant Volume Profile area, and what followed was this huge candle indicating aggressive buyers pushing the price up.

If you look closely, this candle also formed a Fair Value Gap right here. This is the Fair Value Gap, and a Fair Value Gap shows us the strength of buyers. All in all, we have a strong uptrend starting with a gap, a heavy volume zone, and a Fair Value Gap, and everything aligns nicely and points to this long level. As you can see, my long level was at the beginning of the heavy volume zone and also more or less at the beginning of the Fair Value Gap. That was the reason for the long trade entry from this level.

The way I set up this trade was that I placed my stop here. This was the stop-loss, and the reason was that it was behind the heavy volume zone. My stops always go behind heavy volume zones because a heavy volume zone represents a barrier. This whole area was a barrier, and that barrier should prevent the price from going down and hitting the stop. If it does, then the trade is over. That was the stop-loss placement.

Regarding the take-profit placement, you can see this blue dotted line, which represents a take-profit at a risk-reward ratio of one. That’s the minimum take-profit I allow myself to take. But I try to get more than just a one-to-one risk-reward ratio. In this case, I actually took the profit right here. The reason was that I expected there would be a lot of liquidity at the top of this candle, and the market would want to test above that point to see if there were more buyers or liquidity. That was the idea behind placing the take-profit there, because the market often likes to test areas like this, especially in an uptrend.

After that, there wasn’t really any sign of strong sellers, just a small rotation and no indication of aggressive selling. That’s why I thought buyers would want to test this high. As you can see, they eventually did. I took the profit there, and then the price reversed. In the end, it looks like this was a good place to take profit, and it was also a positive risk-reward trade because I was risking this and gaining this. The profit was around 200 pips.

That’s how the trade went. By the way, I publish all my trades in our members area in advance, so all our members can trade them alongside me. Let me show you real quick. This is our members area, and these are the swing levels. If I zoom in a bit, the level was right here on EUR/JPY, and the level was 182.88. If you want to join us, you are very welcome to do so. Just go to my website at trader-dale.com, and if you click the Trading Course and Tools button, it will take you to a page where you can browse my trading education and indicator packs. You can get them separately or scroll down and get the combo pack, which is a bundle of all four packs for a discounted price.

That’s about it. I hope you enjoyed the video, and I’m looking forward to seeing you next time. Until then, happy trading.

Comments

Post a Comment

Popular posts from this blog

Bitcoin is Dropping Hard! Here’s Where Smart Money Will Buy Again

Video Transcript: Hello everyone, it’s Dale here. In today’s video, I’d like to talk about Bitcoin. The reason is that Bitcoin has been dropping like crazy, and a lot of traders are wondering where Bitcoin will go and what to expect. If I look at the chart and use Volume Profile, I would say that it’s pretty straightforward because Volume Profile very clearly shows the strongest support and resistance levels. So, let’s take a look at the chart, and let me show you. What you see before you is the daily chart of Bitcoin. This is the big picture, and as you can see, from the all-time high here, Bitcoin experienced quite a significant sell-off and is currently dropping. Right now, I don’t really see any strong support that would stand in the way of this strong sell-off. Let me use Volume Profile and show you what could actually stop the sell-off of Bitcoin. All right, so what I’m going to do is apply Volume Profile over this whole area to see the volume distribution. As you can see, there ...
Post a Comment
Read more

Quick In & Out Trade on USD/JPY – Smart Money Concepts & Volume Profile

Video Transcript: Hello everyone, it’s Dale here. Welcome to the next video of the new series, where I’ll talk about my recent trades. Today’s trade is on the  USD/JPY . It was a very quick in-and-out trade, so let’s check it out. What you see before you is the 30-minute chart of the  USD/JPY , and the level I was trading from was this short level at  149.63 . The reasoning behind this level—let me zoom in a little so you can see this better—was the volumes that formed here. From this place, there was a sharp sell-off. Even though the volumes do not particularly stand out, what’s important is that from this zone, there was a strong sell-off. There was also a  Fair Value Gap . My software highlights that, but when the gap is filled, it’s not highlighted anymore. If I mark it for you, this was the Fair Value Gap, which is a setup from Smart Money Concepts. I like to trade from the beginning of the Fair Value Gap, which is here. This is also the beginning of a heavy vol...
Post a Comment
Read more

ORDER FLOW: How to Trade the Absorption Setup (Trade Entry Confirmation)

Video Transcript: Hello everyone, and in this video, I’d like to talk about order flow and one of my favorite confirmation setups in order flow. The confirmation setup is called the absorption, and I’ll show you an example of a trade I made a couple of days ago. I think this is the perfect example of how you can use the absorption setup to confirm your trade entry. So, let’s take a look at it. First, let me start by showing you the level I wanted to trade, and then I’ll show you the absorption setup. You’re looking at the  EUR/USD  30-minute chart, and I had a long level here, marked by this line. This was a long level based on a Volume Profile setup, focusing on those heavy volumes formed within this important rejection. So, this was the long level. What happened was that the price started to go into a sudden sell-off, and there wasn’t really any strong macro news behind this. I wasn’t really sure what was going on, but there was this sudden sell-off, this spike move. Because...
Post a Comment
Read more