Video Transcript:
Hey everyone, it’s Dale here. In this video, I’ll show you the strongest Volume Profile levels to trade this week. We’ll take a look at a couple of intraday trades, which will be on GBP/USD, USD/JPY, and AUD/USD. So, let’s get to it, and let’s start with the one on GBP/USD. Here is a 30-minute chart of GBP/USD. The platform is NinjaTrader 8, with my custom-made Volume Profile and VWAP indicators, and I want to talk about support which formed here. It is at 1.3244.
Now, the first thing I want to show you here is how the volumes developed over the whole week. This Volume Profile, the weekly profile on the left, shows the volume distribution over the past week, over this whole area. And it shows two very important places: this one and this one. Now, I want to talk about the lower one, this one, because from this place, from this heavy volume zone, a strong trend started. So, what I think happened was that buyers were accumulating long positions here. We can see this on the Volume Profile, and then they pushed the price up. Now, it’s not only that this level is important from the bigger perspective, but also, if you take a look at this area, only that rotation preceding this new uptrend, you can tell that heavy volumes were traded here, right? And I want to trade those heavy volumes when the price comes back to this place. So, if there is a pullback to this level, to 1.3244, I’ll go long because I think that the buyers who were active here before will want to defend this place and push the price upwards from there. Right. We have the volumes, I mean, we have the level confirmed from this rotation and the volumes here, and also from the higher perspective of those volumes. We also have a little fair value gap here and a bigger one here. If they are stacked like this, I look at it as if this were one big fair value gap, and the fair value gap begins at our level. Right? So, those are the reasons why I think the price should react here. Now, we just need to be patient. We need the price to drop, and when it does, we can take the long from there. Right? So, that’s for GBP/USD. Let me now switch over to AUD/USD.
And here we have a very, very similar thing. If you take a look at the Volume Profile from the previous week, again, we have two significant volume zones: this one and then this one. And I want to talk about the lower one, this one. All right. Now, the similar thing that we have on AUD/USD, the same thing as on GBP/USD, is that we have that heavy volume zone, and from there, strong buying activity, or a strong uptrend, starts. So, again, the narrative is the same. We have buyers accumulating long positions here and afterwards pushing the price up, and the price should react to those heavy volumes if the price comes back to those volumes. All right. So, the logic is the same, and again, we just need to be patient. We need the price to drop to this level, which in this case is at 0.6893. And when the price reaches here, the buyers from here, who were active here before, should become active again and push the price upwards. In this case, we also have a beautiful fair value gap, which is here, highlighted in green. One big fair value gap begins right here at our level. So, that is also a thing that adds strength to the level, right at the beginning of a fair value gap.
Now, in this case, there is one risky thing that I want to address, and the thing is, take a look at those lows. Let me mark them in red. Take a look at those lows. They are very, very close to each other, and they might represent a stop-loss cluster, right? Because people like to place their stop-loss orders below swing lows like those. So, this might be a stop-loss cluster. And when there’s a stop-loss cluster, the price likes to shoot past it because there is a lot of liquidity here. All right? So, it’s risky that when we go long from this place, the level might not work, and the price will want to test that stop-loss cluster. So, there is a certain risk involved in this. But guys, if you want to trade this, you need to be okay with this. Okay? My plan is, if the price shoots past it, past that level with no reaction at all, and takes out those stop-loss orders here, then what I’ll do is, let me draw this. If the price goes to the level, shoots past it, then what I’ll do is trade the same level from the other side. So, I’ll wait for the pullback, and from this level, from the same level, 0.6893, I’ll go short. Okay. So, if the long is a loss, if the price doesn’t react to the level, then I’ll take the short from here, from the same level. Okay, that’s the plan. I call this a reversal trade. And yeah, that’s what I plan to do here. So, that’s for AUD/USD.
And let’s now take a look at USD/JPY. So, here is the 30-minute chart of USD/JPY. And what I want to talk about is this recent uptrend. When there’s a trend like this, I always look for significant volume clusters to trade pullbacks from. So, let’s take a look at the trend and how the volumes looked there. Now, as you can see, I have a long level here at 161.85, and it is because there is that volume cluster here. I like how this volume cluster looks. It’s bigger than, for example, this one. Also, it’s followed by this little fair value gap here, which you can see highlighted in green. And if the price drops to this place, it’s quite likely that the buyers who were adding to their long positions here, you can see that on the Volume Profile, those bars here, are likely to defend this place and push the price upwards from there. All right? So, that’s what I’m counting on. The buyers defending the volumes which they placed here. Unfortunately, I don’t have any other setup that would strengthen the level, but this still has to do. So, yeah, that’s the plan on USD/JPY. There are also a couple of volume clusters, but I like this one the best, I would say. There’s this one, but it’s kind of weird-looking to my taste. This one looks, I would say, more solid. It’s also closer to the current price, which is good. So yeah, we just need to wait for the pullback and take it from there.
Now, if you guys are interested in learning more about Volume Profile trading, we are currently running a special sale on my website. So, if you want to purchase one of my trading packs, now is the perfect time. Let me show you. So, this is my website, trader-dale.com, and if you click this button, “Trading Course and Tools” it will bring you to this page. As you can see, we have the banner up. So, it’s the Independence Day sale, which will be ending in a couple of days, on July 10th. Until then, you can get the packs discounted here, or get all the packs together for a massively discounted price at the bottom of the page. All right. So, anyways, I hope you guys enjoyed the video, and I’ll be looking forward to seeing you next time. Until then, happy trading.
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. And what I’ll do next is another contest for 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 that. Thanks for watching the video, and I’ll be looking forward to seeing you next time. Until then, happy trading.
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