Video Transcript:
Hey everyone, it’s Dale here. Welcome to this video where I want to show you a couple of strong Volume Profile levels to trade this week. And, you know, in this video I want to do it a bit differently than usual because we usually cover majors, but this time I want to cover crude oil and also a couple of crosses. 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 chart of crude oil futures. You’re looking at the 30-minute chart of Crude Oil Futures. And what I want to show you here is a support level, which is here at 81.90. This support is based on a very significant volume zone, and you can find it with Volume Profile like this. If you take a look at this very significant and strong rejection of lower prices, then you can see that massive volumes were traded here. Those volumes are important because they formed within this strong rejection. This was a very important place because there was this sell-off, and then buyers stepped in and started to push the price up. So that’s why this area is important, because this was the rejection of lower prices. This was the lowest point of the rejection, and those were the heavy volumes of the buyers who stepped in, started to buy, and then pushed the price up. So the level is based on that, and it is at the beginning of this heavy volume zone. This is where the buyers stepped in, and that’s why this zone is important. So when there’s a pullback to this level, then chances are that when the price reaches this level, there will be a reaction like this because the buyers from here should step in again, defend this place—which was very important for them in the past—and push the price up from there again. Okay, so that’s the logic behind this level, and right now we just need to wait for the pullback, and if it happens, then take it from there. You obviously want to be very careful around the news about Iran. But if there’s no news that would cause massive spike moves or increased volatility, then this level should be okay to trade. All right, so that’s for crude oil.
The next level that I want to talk about is on CAD/JPY, so let’s take a look at it. Actually, it’s two levels—two long levels. Both are based on Volume Profile. The lower one—and I want to start with this one—is at 115.71. And there is a similar scenario as we saw on crude oil. Oh, and by the way, we are looking at the 30-minute chart. Okay, always the 30-minute chart when we are looking at these intraday levels. So, we have this strong rejection of lower prices. That means sellers were pushing the price downwards, but then buyers stepped in and started to push the price up. When you see a rejection like this, it’s the same as on crude oil—we want to see a significant volume cluster like this one because this is the place where buyers stepped in. Okay, this is the most important place within that rejection. So the level that I have here is at the beginning of that heavy volume zone, 115.71. When the price makes a pullback—if it makes a pullback at some point in the future—then there should be a reaction. Buyers from here should become active again, defend this place, and push the price up from there. Now, the second level that I want to show you is a little bit higher, and it is at 116.40. If you look at the volumes here, then you can see that massive volumes were traded in this little rotation. And since this happened inside an uptrend, that means that buyers were adding to their long positions here. That’s what the Volume Profile is telling us. So what I want to do is wait for the pullback. When the price reaches this heavy volume zone—especially this place, because this is where the volumes are the heaviest—I want to go long from there, because the buyers from here should become active again and push the price upwards from this place. They should, in other words, defend their positions which they placed here. What also adds strength to this level is this little fair value gap. It’s highlighted in green, so that’s a little bonus to make the level stronger. All right, so that was CAD/JPY.
The next one is EUR/JPY. Let’s take a look at it. In this case, it is a resistance level that I want to talk about, and that resistance level is at 187.66. It is this one. And if you look just at the price action, you can tell that this is an important place because a strong sell-off started from here. That means aggressive traders—quite possibly big traders—were pushing or manipulating the market. The reason why I’m saying that the move started here is because this is the beginning of a bearish fair value gap, right here. Another fair value gap is this one, but this was the first one. This is where the big move began. Now, it’s not just about the fair value gaps, though—it’s also about volumes, because we had heavy volume activity before this sell-off. So this is telling us that sellers were accumulating their short positions. They were getting ready for the move. So that’s why this level is important. Heavy volumes mean big traders, and then we have this massive sell-off. So we have this level here at the beginning of the fair value gap as well as at the beginning of this heavy volume zone. And if the price makes it to this level, there should be a reaction like this because sellers should become active here again, and they should defend this place, which was clearly important for them in the past. So they should defend that place, and from here they should push the price downward. So that’s why I think it’s a strong resistance.
Now, if you are interested in learning more about Volume Profile trading or getting your hands on my custom-made Volume Profile indicators, you can get them on my website at trader-dale.com. If you click the button that says “Trading Course and Tools” it will bring you to this page, and you can scroll down a bit to find my trading packs, which you can choose from. If you are interested in Volume Profile trading, then you want to go for the Volume Profile course right here. All right, so that’s it. Thanks for watching the video. I’ll be looking forward to seeing you next time. And until then, happy trading.
Now, before I wrap the video up, I’d like to announce the winner of the 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 run 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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