Transcription
Hey everyone, it's Dale here. Welcome to the new weekly trading ideas video. Now, I'm shooting this Friday evening because I won't be home on Monday morning. So, I'm shooting this a little bit in advance, but you know, I don't think that the market will move too much until Monday morning. So, I think that uh those levels which I'm going to show you will still be intact, that they'll still be active and good to trade. So let's take a look at the chart, shall we?
The first chart that I want to cover is the ES; then we will talk about the euro; and then it will be the British pound. So before you, this is the Ninja Trader 8 platform with my custom-made volume profile and VWAP indicators, and the chart before you—that's a 30-minute chart of the ES, that's futures for the standards and pores index 500—and what I want to talk about here is a resistance which formed right here at 5989. This one is based on a strong rejection of high prices. As you can see on Thursday, there was this very, very aggressive buying activity, and then sellers jumped in and they initiated a new selling activity. So this is a stronger rejection of higher prices. When there is a rejection like this, you want to look into how the volumes are distributed. Ideally, you want to see a heavy volume bump around the place where the price turned from buying to selling. Right? You want to pinpoint that place because it's usually an important resistance zone. If I use the profile like this over the rejection area, then you can see that there is this heavy volume zone. And this shows us a place where sellers started to sell, and they were selling and selling and selling, and then they initiated this new downtrend. And the level that I have here is roughly the beginning of that heavy volume zone. And it is also, as you can see, at the beginning of a fair value gap. Now this software which I have here automatically highlights the fair value gaps. Highlights them in red and green. So this is the fair value gap. It is a bearish fair value gap. And I like to trade from the beginning of the fair value gaps, which is right here. This is the beginning of the bearish fair value gap. That's where my level is. And that's also where this beginning of that heavy volume zone starts. So this is a strong resistance to trade from. Right now, I just need a pullback, and when the price reaches this place, then I'll go short from there, as this is a strong resistance, right, because the buyers from here are likely to defend this place when the price makes that pullback and push the price downwards from that place again. So that's the plan for the ES.
Now let me talk a bit about the Euro dollar. So what you see before you, this is the Euro dollar 30-minute chart, and in here I have two support levels. This one at 1.1289 and this one at 1.1246. Now both those strong levels are based on this buying activity which uh took place on Thursday. As you can see, there was a pretty strong downtrend, but then buyers started to buy, and you can see that nicely on the volume profile here, this heavy volume zone. And they started to push the price higher and higher. You can see additional volumes being placed in here. And you know, those buyers were adding to the long positions and pushing the price higher and higher, rejecting the lower prices. And those two heavy volume zones represent places which the buyers should defend because they were active here in the past. That means that those levels are likely to be important for them in the future. So the levels are at the beginnings of the heavy volume zones. This one is at the beginning of this heavy volume zone. This one—well, this one is actually not the beginning of a heavy volume zone, but in this case it is the beginning of a fair value gap. It is a bullish fair value gap, highlighted in green. As I was saying, I like to trade from the beginnings of fair value gaps, which in this case is right here. That's the level 1.1246. So that's actually why I placed the level exactly in here. All right. And the level before that, that's the beginning of the heavy volume zone also. That's uh first deviation of weekly VWOP making a nice confluence to that volume profile level. All right. So what I want to see now is a pullback reaction, pullback reaction. That's the ideal scenario. All right. So right now we just need to wait, and if those pullbacks occur, then we can trade from those two levels. Chances are that there are going to be nice reactions. So that's for the euro.
Uh, the next thing I want to talk about is the British pound. So this is the British pound 30-minute chart. In here we also had a downtrend. Then buyers stepped in and a start of a new uptrend. At least this aggressive buying activity right now. It doesn't look like a strong uptrend. It's more like a rotation. But this definitely where aggressive buyers pushing the price upwards. And let me now show you how the volumes are distributed here in this area where my level is. All right. If I show you like this, then you can see that there's this heavy volume zone representing buyers jumping in. Right. So sellers are pushing their price downwards, and buyers started to jump in. They were buying everything the sellers had to sell. That's why the price stopped to move and then went upwards. Right? So this represents strong buyers, and those buyers should defend this place in the future as well. So when the price makes a pullback, chances are that the buyers will step in and push the price upwards from there. Again, as you can see, this level is also at the beginning of a fair value gap. This is the fair value gap zone. And the beginning of the fair value gap, the place from which I like to trade is right here at our level, which is at 1.3437. All right. So that's the plan for the British pound right now. We just need to wait for that pullback, and if it occurs, then take it from there.
Now, if you guys are interested in trading with me and other proper-form traders in the live trading room every day, then what I recommend is visiting my website, which is traderale.com. This is it. And if you click this button which says FTA, stands for Funded Trader Academy, it'll take you to this page, and there's a video where I'll explain everything more in detail. And if you like it, if you would like to join us, then book a one-on-one call in here. Then we will walk you through the service, and then you can decide whether or not this is right for you.
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 were my custom-made volume profile and VWAP indicators for Trading View platform. And right now on your screen, you see the name of the person who won in the contest. So, congratulations to the winner. And what I'll do next is I'll do 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 that. Thanks for watching the video, and I'll be looking forward to seeing you next time. And until then, happy trading.