Video Transcript:
Hey everyone, it’s Dale here. In this format of the video, I usually show you one best trade of the week. This time it’s going to be a bit different. I’m going to show you three trades. The reason I want to show you three trades is that all three trades were based on predictions that I published on TradingView. Also, if you are subscribed to my channel, I sent out an email with those predictions. So yeah, the three trades I’m going to comment on here are based on those predictions.
Here is my TradingView channel. The trades and the predictions were on GBP/USD, AUD/USD, and EUR/USD. I made those predictions on Monday, and they finally played out. So let me show you.
Let’s first start with EUR/USD. This was the predicted support level based on a significant volume cluster, and this is how it played out. Here is the reaction. What I want to do now is switch to NinjaTrader and show you in more detail how I traded this.
This is NinjaTrader. It’s the same trade, just on a different platform. This is the long trade, and the reasoning behind it was this significant volume cluster. That was the first reason. The second reason was that the price reacted to this level in the past, which means it was a resistance that turned into support when the price broke above it. So there were two setups pointing to this support, and then I waited for the pullback. The price hit that level here and made the reaction.
The way I set up this trade was by placing my stop here, below the volume cluster. I always place the stop behind a heavy volume zone because it works as a barrier. The price should not go past that barrier. So that’s why the stop is always behind the heavy volume zone, like in this case. This was the stop.
Regarding the take-profit, I placed it before a barrier. If I show you the Volume Profile, this is how the volumes looked when the price was approaching my level. The price approached the level, and this was the volume distribution. This volume cluster was the first resistance. It wasn’t a very strong one, but it was still the first barrier standing in the way. So I went long from here and exited the trade at this level. This was the take-profit, this was the entry, and this was the stop. That’s how the EUR/USD trade played out.
Now let’s move to the second trade, which was GBP/USD. It was very similar. Let me show you the prediction again on TradingView. This is the predicted level on GBP/USD, based on a heavy volume zone. If I show you how it played out, it looks like this. This was the support, and this was the reaction. It’s very similar to the EUR/USD trade.
Now let me switch back to NinjaTrader so I can show you the stop-loss and take-profit placement. Here we are on NinjaTrader again, and here is that long level. This is where the price hit the level. The way I set up this trade was the same as before. I placed the stop behind the heavy volume zone. This is the heavy volume zone the trade was based on, and the stop was below it, right here. The stop needs to go behind the heavy volume zone because it acts as a barrier. This whole area is the barrier, and it should protect the trade.
Regarding the take-profit, I followed the same logic as in the EUR/USD trade. I looked at how the volumes were distributed as the price was dropping toward the level. Again, there was a significant volume cluster. This one was the first barrier standing in the way of the long trade, so that’s why the take-profit was placed here. Same logic as before. So these were two very similar trades, and both played out nicely.
The last prediction was on AUD/USD. Let me show you. This is TradingView again, and here is the prediction on AUD/USD. It was a resistance based on a heavy volume zone. This was the resistance, and this is how it played out. The price did not quite reach my limit order, which was here. Let me zoom in so you can see it better. You can see that the price missed the level and then made a strong reaction.
After that, I had to discard the level because it was no longer valid. I only trade first tests, and I consider this a proper test even though my limit order did not get filled. So that’s how the three predictions from Monday played out.
I hope you liked the video. If you want to learn more about Volume Profile trading, follow my trading levels, and get them every day, then you can enroll in one of my trading courses. You can find them on my website at trader-dale.com. Just click the button “Trading Course and Tools” and it will take you to the page. Scroll down a bit and you’ll see the courses.
Thanks for watching the video. Have a great rest of the day, and I’ll see you next time. Until then, happy trading.
Comments
Post a Comment