Volume price analysis gives reversal signal for gold

Volume price analysis gives a reversal signal for gold

Follow up to the reversal signal we saw in gold in the previous video.

00:12

VIX spike and market reaction

00:12

The speaker discusses the current market situation while preparing to have a cup of tea in the South Downs. They analyze the VIX index, noting a spike on the one-minute chart which explains the reaction in the broader market indices. Despite checking the news, no specific event is identified as the cause of the spike, suggesting this is a typical market occurrence. The VIX spike and subsequent index movement are central to the segment’s focus.

01:17

Avoid trading during holiday thin markets

01:17

The speaker advises against trading during the holiday season due to thin markets and high volatility from low volumes. They compare this period to trading just before Christmas Eve, emphasizing the increased risks. The market instability observed is linked to these conditions, despite a substantial $2.3 trillion Fed backstop.

01:49

Gold price reaction and profit taking

01:49

The speaker discusses a significant market movement in gold, emphasizing the importance of understanding the numbers involved. They highlight a clear price weakness and advise taking profits to avoid losing substantial amounts, noting that even a $10 drop per ounce represents a large financial impact on big gold contracts.

02:24

Volume signals and bearish price action

02:24

The segment analyzes significant market activity with emphasis on large trades and strong volume, indicating a clear downward trend in gold prices. Initial signals showed a power reversal followed by confirmed weakness, supported by widespread bearish candles and high volume. The trend monitor confirms a shift straight into bearish price action, bypassing transitional phases. Attention is drawn to key support levels around 36 to 35, with the volume point of control suggesting these levels may be tested or breached quickly due to low volume areas above.

03:28

VIX reversal and reentry trading signals

03:28

The speaker discusses observing large volume buyers while the VIX reverses and trends lower, indicating a potential reversal in gold prices. They emphasize watching for specific candle patterns signaling reentry opportunities during price waterfalls, particularly when the market attempts to rally against a weak trend. Key signals include rallies with high volume or rallies with declining volume, which help traders decide when to exit long positions and enter shorts.

04:22

Volume analysis for trade confirmation

04:22

The speaker analyzes trading volume and price spread patterns, comparing different candles to identify subtle signals of market behavior. They highlight a high-volume candle that stands out, suggesting it as a benchmark, and discuss how lower volume with similar price spread might indicate early signs of weakness. The segment emphasizes teasing out subtle and clear signals to confirm market trends before concluding the discussion.

05:26

Overview of trading indicators and platforms

05:26

The speaker discusses various trading platforms and indicator availability. Indicators can be found on quantumtrading.com and are compatible with MT4, MT5, NinjaTrader 7 and 8, and TradingView. A single license covers both MT4 and MT5, and users can switch between NinjaTrader versions with one license. Additionally, the speaker mentions ongoing work integrating TradeStation platforms, highlighting TradeStation Global, which operates on TradeStation 9.5 and is linked to Interactive Brokers. This combination offers powerful trading capabilities, with TradeStation’s advanced and intuitive features praised for their extensive tools and radar screen functionality.

07:04

TradeStation platforms and future updates

07:04

The speaker discusses TradeStation versions 9.5 and 10, highlighting their powerful and intuitive radar screen and charting capabilities for Forex trading via Interactive Brokers (IB). They mention ongoing development of indicators for these platforms, promising that users with the full package will receive all future indicators for free. Additionally, the Forex education program is available at quantumtradingeducation.com, with lessons applicable to various markets. The session concludes with an apology for the delayed start and an announcement of the next session scheduled for the following Tuesday morning during the London Forex session.

08:32

Next session info and holiday wishes

08:32

The speaker informs viewers that by using the provided link, they will automatically receive details as this is part of a series, eliminating the need to register again. They wish everyone a good Easter, encourage staying safe and connected with family during the holiday, and express gratitude for attending. The session will continue next Tuesday.

Current Gold and Silver Prices (as of February 16, 2026)

Gold is trading around $4,995 per ounce, down slightly from recent highs above $5,000 but up over 70% year-over-year. Silver sits near $76.50 per ounce, off recent peaks but still elevated amid industrial demand and precious metal momentum.

Recent Moves and VPA Insights

Gold has shown strong upward conviction on high volume during risk-off periods—classic safe-haven buying from institutions. Recent pullbacks on lower volume suggest temporary pauses rather than reversals (effort not matching result). Silver follows gold but with amplified volatility—high volume spikes confirm industrial/investment demand, low volume at tops warns of distribution.

From a Volume Price Analysis (VPA) perspective, both metals display accumulation phases: rising prices with sustained volume indicate professional support. Anomalies like high volume with little advance signal absorption—watch for breakouts.

Key Drivers: Inflation and Beyond

Inflation remains the primary driver. Persistent above-target CPI erodes fiat purchasing power, pushing investors to gold/silver as hedges. Central banks continue heavy buying (record demand), reinforcing floors. Geopolitical tensions and de-dollarization trends add safe-haven flows.

Bond yields and USD strength provide counterpressure—higher yields attract capital away from non-yielding metals, strengthening USD (inverse relationship). Recent yield dips support rallies; spikes could trigger corrections.

Short-Term Outlook (Weeks to Months)

Expect volatility around Fed decisions and data releases. Gold likely consolidates $4,800–$5,200 with volume confirming direction—high volume breakouts favor upside. Silver more reactive ($70–$85 range possible). VPA tip: Watch for stopping volume at lows—strong reversal signal.

Medium-Term Outlook (3–12 Months)

Bullish bias persists. Forecasts target gold $5,000–$6,000 by year-end on inflation persistence and central bank demand. Silver could outperform ($100+ potential) on industrial recovery. VPA reveals truth: sustained high volume trends = institutional conviction. Low volume extremes = reversal opportunities.

Precious metals remain key hedges in uncertain times—VPA helps navigate the noise.

For deeper VPA strategies on gold/silver, explore Quantum Trading Education resources.

By Anna Coulling

Creator of volume price analysis

By Anna Coulling – creator of volume price analysis