Video Transcript:
Hello everyone, it’s Dale here. Welcome to this video where I’ll show you the strongest volume profile levels to trade this week. Let’s check out the first level, and it will be on the AUD/USD. What you see before you is a 30-minute chart of the AUD/USD. And what I want to show you here is a resistance which formed on Friday. This level, this red line, is that resistance at 0.7205. And if you take a look at the price action here, then on Friday there was rather aggressive buying activity right here, then some sideways price action, and then the price started to drop. So this is something that I call a strong rejection of higher prices. Right? Now, if you look into this rejection with Volume Profile, then what you want to see there is a significant volume cluster like this one. This is the place where sellers started to jump in, and after that they reversed this uptrend into a new downtrend. Right? So this is a significant place, and what I want to do is trade from the beginning of that place. That’s our level, 0.7205. Okay. When the price makes a pullback to it, then the sellers who were active here in the past should be active here as well and push the price downwards from there again. Okay. So that’s the logic behind this trade. Right now, we just need to wait for that pullback and then take the short from there.
Now, quite a similar setup is on the GBP/USD. Let me show you here. We also had this steep uptrend on Friday, then a little bit of sideways price action, and a change of trend. So that’s the same thing, right? We have a strong rejection of higher prices. Now, if you take a look at how the volumes are distributed here, again we can spot a significant volume cluster. This one again represents a place where sellers were active, and when the price reaches this place, then there’s a chance that the sellers will become active again because this level was clearly important for them, and they’ll push the price downwards from there again. My level is at the beginning of that heavy volume zone, and it is at 1.3572.
Now, there’s also an additional thing that I have on the GBP/USD. It is a long level, and that long level is based on this uptrend. If you take a look at how volumes are distributed in this uptrend, you can see that there are a couple of volume clusters standing out. This one is rather strong, and it’s followed by this aggressive buying activity. And my level is at the beginning of the heavy volume zone. As you can see, there’s also a Fair Value Gap here, which also adds strength to that level. And if the price drops to this level, which is at 1.3462, then the price should react there. So the buyers from this place should become active again and push the price up. So that’s why I’m going to go long from this level. Okay. So this is what I plan to trade on the GBP/USD. And let me show you one more level. It’s on the USD/JPY.
So here is a 30-minute chart of the USD/JPY. And on Friday, we had a really, really sharp rejection of lower prices. And we’ll do the same thing. We’ll take a look at this area with Volume Profile and look for significant volume clusters. And there’s this one, this volume cluster right here. And this volume cluster represents a place where buyers stepped in and reversed the price from selling to buying activity. Now, there’s also this volume cluster here, but I’m more interested in this one because it’s closer to the low, to the rejection point. Okay, the place where the price actually turned. So I’m more interested in trading this. And what I want to do is go long from this level, from the beginning of that volume cluster, also from the beginning of that little Fair Value Gap here. So I’m just waiting for the pullback, and I’ll go long from there. The level is at 157.92. Okay, the logic is the same as with the previous examples on the GBP/USD and the AUD/USD. We have a strong rejection, and we have a significant volume cluster within that rejection. That’s the whole trick.
Now, if you guys are interested in learning more about Volume Profile trading, you want to head over to my website. It is trader-dale.com. Click this button which says Trading Course and Tools and it will bring you to this page where you can browse my trading education. It’s right here, and my custom-made indicators. All right. So, thanks for watching the video. I hope you found it useful, and I’ll see you next time. Until then, happy trading.
Now, before I wrap the video up, I’d like to announce a 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 can see the name of the person who won the contest. So congratulations to the winner. And what I’ll do next is another contest for the next week. The only thing that 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 to win this set of custom-made indicators. So that’s about it. 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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