In this video we focus on the forex market and in particular at the London open. The currency pair we consider is the GBP/USD and for the 1 minute timeframe which shows the market makers setting their traps at the London open which are easy to spot using volume price analysis.
00:21
Introduction to Forex workspace and currency strength
00:21
The speaker introduces a change of scenery by switching to the forex workspace. They explain that this workspace is typically used to start with multiple currency strength indicators to identify market movements, including which currencies are strong, overbought, oversold, or moving together, helping to determine which are currently not of interest.
00:47
Strong buying in Yen and selling in Pound
00:47
The speaker discusses strong buying activity in the Japanese yen and strong selling in the British pound over the past hour during mid-morning in the UK. They highlight a profitable trading opportunity from the pound moving from an overbought position and the yen from an oversold position,...
Video Summary[00:00 ~ 06:41] The Japanese Yen’s weakening is influenced by Japan’s traditionally low interest rates and preference for a weaker currency to support exports, despite recent inflation concerns. Interest rate differentials, such as those between the Japanese Yen and currencies like the New Zealand and Australian dollars, play a key role. The carry trade, where traders borrow in low-yielding Yen to invest in higher-yielding currencies, has historically driven Yen fluctuations. Large interest rate divergences attract significant market attention, especially from institutional players, amplifying currency moves.[06:11 ~ 14:47] The British Pound has been rising ahead of the UK Autumn Statement (formerly the budget). Market positioning and leaked expectations of tax relief or monetary benefits have supported the Pound. However, technical analysis also plays a critical role: price movements often reverse or bounce at significant technical levels (e.g., support/resistance points like S3 in Camarilla levels). Combining fundamental drivers with technical signals helps traders navigate market moves more effectively.[09:16 ~ 14:11] The Pound/Yen pair exemplifies how strong directional...
https://www.youtube.com/watch?v=_c-hAs2L69A
Trading using multiple time frames is a skill all traders need to master, but this also applies to using our specialist forex indicators, such as the currency strength indicator. In this video, David explains how this approach can highlight potential trades and setups. In addition, he explains how the csi highlights flows into risk currencies, which can help us determine market sentiment. And he also looks at several vpa anomalies.
By Anna Coulling - creator of volume price analysis
Ready to Master Forex Trading with Volume Price Analysis?
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Some dramatic price action with the sterling pairs on news the UK and the EU may have reached an agreement on the impasse over Northern Ireland. News that a deal had been agreed resulted in GBP soaring higher across all our pairs, but as always with anything Brexit related, today has seen a cooling in the price action with the biggest reversal in gbp/jpy - affectionately known as the Yeppy.
We can see the setup clearly in the csi and captured with great precision by the Renko chart for MT4.
By Anna Coulling - creator of volume price analysis
Ready to Master Forex Trading with Volume Price Analysis?
Join The Complete Forex Trading Program by Anna Coulling and unlock professional-level insights. Learn to spot institutional accumulation, avoid traps, and build consistent strategies using VPA. Lifetime access, Quantum indicators, and real-market examples—transform your investing today!
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Since posting the above, the DXY has tested the volume point of control but is poised to close today's session as a long-legged doji candle.
How the Currency Strength Indicator Works
The Quantum Currency Strength Indicator (CSI) ranks the eight major currencies live, showing relative strength and weakness in real time. It measures momentum across pairs, highlighting which currencies are gaining or losing ground. Unlike single-pair views, CSI provides a relational dashboard—strong currencies rise to the top, weak ones sink. This visual ranking uses volume price analysis (VPA) principles to filter noise and reveal true professional intent. Traders see extremes quickly, spotting overbought or oversold conditions before price action confirms.
Identifying Reversals and Trend Opportunities
CSI excels at signaling reversals and trends by showing currency extremes. When a currency reaches the top or bottom of the ranking (overextended), reversal potential increases—especially with volume confirmation. For trends, watch sustained strength/weakness: a rising currency paired with a falling one creates powerful directional moves. Forex traders use...
The Quantum volatility indicator captured dramatic price action in the yen pairs during this month's BOJ meeting. This confirms what had already been signalled in the currency options market. The overnight implied volatility, which is the metric we watch, was at 50% (a six-year high). So a violent price reaction was expected, of which the aud/jpy was one example. As shown on the hourly chart above in the MT4 profile for the pair, we see the relentless move higher and the volatility trigger on the huge up candle. This trigger of the purple arrows happens in real time and warns us that the price action is outside the average true range for this time frame.
Trader reaction is usually FOMO, with many jumping in just as the price is likely to pause or reverse, as in this case. This is a classic trader's trap. It happens all the time. However, when we read the price action alongside volume, we can spot...
We are seeing some significant moves in sterling this week, and none more so than in the gbp/cad, a commodity cross pair that can often deliver solid and consistent trends. However, on a time chart, it can be challenging to gauge a trend's strength and momentum. This is why traders use either tick or Renko charts. For traders who like to use tick charts, the problem has always been knowing what tick value to use. They either guess or rely on values suggested by other traders. However, as activity and momentum in the market are constantly changing, these static values are no better than a time chart.
This is why we developed the Quantumtick speedometer, which calculates the optimal chart value and, in addition, uses a traffic light system to indicate when the market is active or not. The indicator is attached to a time chart, allowing us to use our volume price analysis methodology, which we can see on the...
As the DXY index (USD) continues to strengthen, many traders would like to know how much further it is likely to rise. The simple answer is that, from a historical perspective, the DXY reached a high of 151 in 1984, so there is plenty of room to run. We must consider the daily and monthly charts to view their current trajectory. The monthly is interesting because last month's price action triggered the Quantum Dynamic Volatility indicator, confirming the candle range is outside the ATR for this time frame. The reaction to this trigger is that price action will most often retrace into the candle's spread and consolidate before direction is re-established, which is what we are seeing now. In addition, last month's volatility candle gives us key support and resistance levels for the DXY.
The daily chart below is where we will find the week's important support and resistance levels. On this chart, we are using both price based levels generated...
Over the past few days, volatile price action in the euro currency has highlighted how using a Renko chart can help us deal successfully with such market conditions, and the pair I want to focus on is the eur/cad. Yesterday, the euro had a good day with strong upward moves across its matrix, but this was ahead of today's important ECB meeting.
Whilst the bank raised interest rates as expected, the accompanying statement triggered volatile price action and a swift move lower. Rather, it was what was not mentioned in the statement, as the ECB removed any reference to rate hikes continuing at the next 'several' meetings. The 15 min and Renko charts above capture this moment for us.
By Anna Coulling - creator of volume price analysis
Ready to Master Forex Trading with Volume Price Analysis?
Join The Complete Forex Trading Program by Anna Coulling and unlock professional-level insights. Learn to spot institutional accumulation, avoid traps, and build consistent strategies using VPA. Lifetime...
The market scanner we have developed for Tradingview can be used for all markets but is particularly powerful for forex trading as it allows us to monitor our preferred pairs simultaneously. In this video, David explains how to use the scanner.
https://youtu.be/uTIWxqM_c50
By Anna Coulling - creator of volume price analysis
Ready to Master Forex Trading with Volume Price Analysis?
Join The Complete Forex Trading Program by Anna Coulling and unlock professional-level insights. Learn to spot institutional accumulation, avoid traps, and build consistent strategies using VPA. Lifetime access, Quantum indicators, and real-market examples—transform your investing today!
Enroll Now & Start Trading Smarter
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