Video Transcript:
Hey everyone, it’s Dale here, and in this video I’ll show you the strongest Volume Profile levels to trade this week. We’ll cover the NQ, then we’ll cover AUD/USD, and then NZD/USD. So, let’s take a look at it.
What you’re looking at is the NinjaTrader 8 platform with my custom-made Volume Profile and VWAP indicators, and this is a 30-minute chart of the NQ. I want to show you a strong support that formed here. This is the support at 29920.
There are a couple of reasons behind this support. The main reason is that if you guys take a look at the shape of the Volume Profile that formed the previous week, this is it. The heaviest volumes of the whole previous week were traded right here. This is the place where the volumes were the heaviest, which means that it’s called the weekly Point of Control. From the weekly Point of Control, the price shot upwards. And this is telling us that the volumes here around the Point of Control were buyers who were building up their long positions, and afterwards, they manipulated the price to shoot up. When there’s a pullback to this weekly Point of Control, to this whole heavy-volume zone, I expect that those guys will become active again, and they’ll want to defend their positions and push the price upwards from there again.
All right, so that’s the main idea behind this trade. Strong move away from the weekly Point of Control. And as you can see, I’m trading from the beginning of that heavy-volume zone where the Point of Control formed. Another thing that I like about this level is that we had a big Fair Value Gap here. See this massive Fair Value Gap? That’s from Smart Money Concepts. And since this is a bullish Fair Value Gap, I trade from here. This is the beginning of the Fair Value Gap. As you can see, it’s exactly at the level, right? And it corresponds with the beginning of this heavy-volume zone. See?
Now, another thing that adds strength to the level is that the price reacted to that level a couple of times in the past, here and here. That means that it was a resistance. When the price blew past it, it turned into a support. This is a price action setup that I call a resistance-support flip, and it also adds strength to the level. So, what we need to do now is just wait for the pullback, and when the price reaches this place, then take the long from there.
Now let’s take a look at AUD/USD. So, here is a 30-minute chart of AUD/USD, and let me zoom this in a little bit. We have a rather steep uptrend here. This whole uptrend. And in that uptrend, if you take a look at just how today’s volumes were distributed, then there is this heavy-volume zone standing out. This is definitely a significant volume zone where buyers who were pushing through this high were adding to their long positions here. And when the price reaches this place, I expect the buyers from this volume cluster to defend this place. It was important that they pushed through this high, and now it will be important for them to hold this level. That’s why I think that there should be a reaction, right? The level is at 0.7096, and this is the main reason behind the level. That’s the volume cluster here. The volume cluster inside the uptrend. Okay, this is a Volume Profile setup that I call the Trend Setup.
Additionally, we have the same setup as before. We have this strong reaction to this level. That means it was a resistance here because the price reacted here strongly, and then when the price went past the resistance, it turned into a support. Right? So again, that’s the same price action setup that I showed you on the NQ. It’s called a resistance-support flip. Additionally, we also have a Fair Value Gap here. See this Fair Value Gap? It begins here exactly at our level. So, for all those reasons, I think that this level should hold and that there should be a reaction. Now we just need to wait for the price to hit it and then go long from there, and trade only the first hit. Okay, the first test. So, that’s for AUD/USD. And let’s now take a look at NZD/USD.
So, this is NZD/USD. Again, we are looking at a 30-minute chart, and again, we have a strong uptrend, a very similar scenario to AUD/USD. Now, in this uptrend, there are a couple of significant volume zones. Let me show you. What I want to trade from is this one and then this one. Let’s start with the higher one, the higher level. That’s this one at 0.5906.
This is based on the same setup as on AUD/USD. That’s the Trend Setup, where you see a trend and a significant volume cluster in that trend, and then you wait for a pullback to that volume cluster and take a trade from there. Right? Additionally, we also have the resistance-support flip setup here. As you can see, there was this massive reaction to this level in the past, right? So, it was a resistance because the price made this strong reaction there. Here, the price went past the resistance, turning it into a support. Right? So, this also confirms the level and adds strength to it.
Regarding the second level, that’s the second level here at 0.5893. As I was saying, it’s based on this volume cluster. But not only on this volume cluster, it’s also based on a big Fair Value Gap. It’s here. See? Fair Value Gap right here, beginning exactly at our level. That’s what I actually used to pinpoint the exact place of the level. That’s the beginning of the Fair Value Gap. See, at 0.5893.
Now, additionally, we also have a resistance-support flip. Check this out. The price was reacting here and here, also here. Not exactly to the level, but in this area. So, this worked as a resistance in the past. When the price blew past it, it turned into a support. As you can see, I’m using the same setups all over again. So, it’s not exactly rocket science. You just need to look for the setups and look for the combos, and the combos present the strongest levels.
All right, so that’s how I do it. Those are the levels that I wanted to share with you. If you guys want to learn my whole Volume Profile trading strategy from A to Z, then you should visit my website. It is at trader-dale.com. And if you click this button here that says “Trading Course and Tools” then there you can find the trading education and my custom-made tools. All right, so thanks for watching the video, and I’ll see 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 I’ll do 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. And until then, happy trading.
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