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. Let’s start with the level on GBP/USD. So, what you see before you is a 30-minute chart of GBP/USD, and in here I want to talk about a support that formed here. The support is at 1.3556.
The reasoning behind this support is mainly the weekly Volume Profile on your left. This is the Volume Profile that shows how volumes were distributed throughout the whole previous week. The most important place in any Volume Profile is the Point of Control, which in this case is here. This is the weekly Point of Control. That means that the heaviest volumes throughout the whole previous week were traded there. What I always watch when there’s a weekly Point of Control like this is whether there is a strong push from that weekly Point of Control, like here. This is the strong push. What this is telling us is that, in this case, buyers were building up their long positions here, and afterwards they manipulated the price to shoot upwards really aggressively. That’s the signal that I’m waiting for, because what I want to see now is a pullback to that level, and I want to trade long from there, right? Those players, those big guys who were active here, should be active here again, defend their positions that they placed there, and push the price upwards from this level. Another thing that adds strength to that level is that we have a Fair Value Gap here. This small one, but more importantly, this much bigger one here. Fair Value Gap is a concept from Smart Money Concepts, and when they are stacked like this, this one and this one, when they are close to each other, then I look at it as if this were one big Fair Value Gap. In this case, because this is a bullish scenario, it begins here exactly at our level, 1.3556. At the same time, also don’t forget about the weekly Point of Control. Okay, so those are the reasons why I think that the price should react there. Now we just need to wait for the pullback and then take it from there.
Okay, the next pair will be EUR/USD. So, here is a 30-minute chart of EUR/USD, and in here we have a very strong push as well, similar aggressive buying activity to what you saw on GBP/USD. In this case, it does not start from the weekly Point of Control. But if you take the Volume Profile and look into the area, you can tell that there was a volume cluster formed here in this area before the price started to rise, right? So, this is a volume cluster that is important because this strong buying activity started from there, and I think the buyers were building up their long positions there in this area, and then they pushed the price upwards. Now, when the price makes it back to this level in the future, the level is at 1.1610, I think that there will be a reaction like this, as those buyers will want to defend this place and push the price upwards again, right? Additionally, at this level, we also have the Fair Value Gap confluence highlighted in green. This is a huge Fair Value Gap starting from this level. This is definitely a thing that adds strength to the level, and the beginning of the Fair Value Gap is exactly where my level is right now. One more thing that makes this level strong is that in the past there was this strong reaction to this level. Well, not exactly to the level, but to this area, right? So, it worked as a resistance, and when the price blew past the resistance here, that resistance turned into a support. This is a setup that I call a support-resistance flip. It’s an old price action setup, and I very much like combining it with my Volume Profile setups. Okay, so for all those reasons, I think that this level should hold, and when the price reaches it, there should be a reaction there.
Now let’s take a look at the last one. The last pair will be USD/CAD. So, USD/CAD opened with a gap. Here is the opening gap. What I want to trade is the heavy-volume zone before the gap formed. That heavy-volume zone is this one. So, on Forex, what very often happens is that sooner rather than later, the opening gap gets filled and the price reacts to the heavy-volume zone behind the gap. That’s this heavy-volume zone, right? So, what I want to trade is the beginning of the gap. That’s here. The level is at 1.3769. It’s a support, so I want to go long from there. Now I just need to see a pullback, and I would say this will be sooner rather than later because this is Forex, and gaps tend to get filled on Forex. So, when the price reaches this level, I’ll go long from there. It’s backed by the gap. It’s also backed by this heavy volume cluster formed before that, right? This is my favorite setup to trade with gaps. So, yeah, let’s see how it goes. As you can see, I also have another level here, another long, which is here at 1.3742, and it’s based on the fact that this was the place where the price actually turned. See, there was a downtrend, and now the price turned into an uptrend, and there was this volume cluster. That’s the place where the buyers started to jump in and where they reversed the price. So, this is the most important place in that whole rejection, and that’s what I want to trade. Okay, this is a Volume Profile setup that I call the rejection setup.
All right, so that’s it for the levels. If you guys are interested in learning more about Volume Profile trading, about my setups, and if you guys want to get your hands on my custom indicators, then you want to head over to my website, which is trader-dale.com, and click the Trading Course and Tools button, where you can check out my trading education and custom-made tools. All right, so thanks for watching the video, and I’ll see you in the next one. 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. Right now, on your screen, you see the name of the person who won the contest. So, congratulations to the winner. 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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