And here is the trap revealed on the GBP/JPY pair from earlier!

And here is the trap revealed on the GBP/JPY pair from earlier!

The crossover from one session to another is one of the most profitable times for the market makers and here’s why. We looked at the GBP/JPY at the start of the London forex session and saw the volatility which is ever present at such times. Now we can see the trap has been sprung and the market has reversed sharply. All those forex traders who jumped into this pair on FOMO, the fear of missing out, on the initial rapid move higher, are now trapped in weak positions and regretting their decision.

00:11

Pound Yen Market and London Session

00:11

The speaker explains market behavior during the London session crossover, focusing on the pound-yen currency pair. A rapid price move early in the London session creates a fear of missing out, enticing traders to jump in quickly. However, this often traps them in weak positions due to sudden reversals. This pattern frequently occurs not only in the London session but also in the US session, where movements from the UK session can be reversed as US markets open, especially in dollar-centric trades.

01:12

Volume Point of Control and Congestion

01:12

The discussion focuses on analyzing price action and volume in the market using a 15-minute chart. It highlights signs of weakness despite previous volatility triggers and large volume surges. The market initially experiences a strong upward move but then reverses, likely returning to the volume point of control—the price level where the most volume has accumulated. This point indicates congestion in the market, reflecting a three-dimensional relationship among price, volume, and time, rather than just a simple linear relationship. The longer the market remains in this congested state, the more significant the volume accumulation becomes.

02:07

Support Resistance via Volume Histogram

02:07

The segment explains how volume areas correspond to support and resistance levels in trading. It highlights that both the accumulation distribution indicator and the volume histogram identify these zones from price and volume perspectives. When volume consistently decreases near these levels, it suggests that the market may break through resistance more easily and quickly. An example is given where if the market surpasses a specific candle level, rapid upward movement is expected based on volume trends, with volume point of control serving as a key resistance indicator.

03:04

Market Indecision and Trend Transition

03:04

The market shows significant indecision with the VIX swinging within a congestion zone and testing a strong resistance line around 130-140. The trend monitor indicates a transition phase, shifting through colors on the three-minute chart, signaling potential movement. Despite attempts to rally, weak volume and price action suggest uncertainty, with a critical crossover point likely to trap many traders. If the current support platform is breached, the market may decline further, leading to extended congestion around the volume point of control.

04:24

Currency Indices and Pound Yen Moves

04:24

The segment discusses recent currency market movements, highlighting a strong buying of the pound followed by selling pressure as it was previously overbought. The yen, initially oversold, is now recovering. Similarly, the Canadian dollar (CAD) has shifted from strong selling to strong buying. The speaker also notes strong selling pressure on the Swiss franc and a decline in the US dollar. Currency indices are reviewed to provide an overview of these trends, with the yen showing sideways movement reflecting volatility levels.

05:16

Focusing on a 15-minute timeframe, the dollar is experiencing significant selling pressure. The euro is currently in a congestion phase without clear movement, while the pound shows a pattern of strong rallies followed by weakness, indicating a fluctuating market dynamic. This segment summarizes the intermediate-term currency trends and market sentiment.

05:43

Cable Market and BOE News Impact

05:43

The segment analyzes market congestion and volatility, focusing on key price levels and volume areas. It highlights a volatility trigger indicating weakness and the importance of watching whether the market trades above certain lower volume regions. Support levels around 1850 and 1860 are identified as strong platforms. The discussion also notes the impact of recent news and upcoming Bank of England (BOE) events, with particular attention to volume patterns and price action on shorter time frames indicating signs of weakness.

06:53

Trading Decisions Using VPA Methodology

06:53

The speaker explains that certain market signals do not necessarily indicate a complete reversal from bullish to bearish trends but serve as warnings for traders to anticipate potential changes. Using Volume Price Analysis (VPA) encourages making trading decisions based on logical, common-sense analysis rather than emotional reactions, which often lead to regret. VPA is highlighted as a powerful methodology applicable across all markets and time frames, especially forex.

07:53

Quantum Trading Indicators and Platforms

07:53

The speaker discusses the availability of trading indicators on multiple platforms including MT4, MT5, NinjaTrader 7 and 8, and TradingView, all sharing the same license. They are currently developing versions for TradeStation, working on two platforms simultaneously: TradeStation Global, which integrates with Interactive Brokers to enable forex trading, and TradeStation Securities version 10. New features include enhancements to the currency matrix that provide historical level references to help users assess current price levels.

09:21

Comprehensive Forex Education Program

09:21

The education program described is a comprehensive forex trading course considered a gold standard, featuring 200 hours of video content and 13 PDF downloads. It covers core modules including psychology, fundamentals, and technical trading mechanics. The program also includes a vast library of video examples, indicator usage, topic-specific webinars on advanced trading techniques, and a webinar library with live sessions. Additionally, members gain access to a supportive traders forum with experienced members and direct assistance from the instructors, providing a robust learning and community environment.

10:53

Closing Remarks and Next Session Info

10:53

The speaker expresses gratitude to the audience for joining and hopes they have enjoyed the session. They emphasize the importance of staying safe during difficult times by staying indoors and caring for family. The speaker sends best wishes to viewers worldwide and announces the next session will be held next Tuesday at 7:45 for Forex, ending with a friendly farewell.

By Anna Coulling – creator of volume price analysis