Applying volume price analysis to trade the cryptocurrency markets

Applying volume price analysis to trade the cryptocurrency markets

00:10

Market patience and volatility frustration

00:10

The speaker greets the audience, noting the pleasant weather in Hampshire and hoping others are well wherever they are. They reflect on the atmosphere in the VPA chat room, highlighting a mix of frustration and impatience as people await price volatility and market movements.

00:43

Currency indices on TradingView explained

00:43

The speaker discusses using TradingView to analyze various currency indices on a five-minute timeframe. They highlight the pound index in the top left, the yen index, the dollar index at the bottom left, and the euro index on the bottom right. The indices provide a quick overview of currency movements, and the charts are set to local time.

01:15

Pre-London open market congestion

01:15

The speaker describes market conditions just before the London open, noting expected volatility. They highlight congestion in the pound, yen, and dollar, with only the euro showing a slight upward trend.

01:44

Using indicators on cryptocurrencies

01:44

The speaker discusses market sentiment across various cryptocurrencies including Bitcoin, Litecoin, and Ethereum using five-minute charts. They address a common question about whether traditional trading indicators used in forex, indices, futures, commodities, and stocks can also be applied to cryptocurrency markets. The answer is affirmative since cryptocurrencies are represented by charts just like any other trading instrument. The speaker highlights the use of the accumulation distribution indicator, which effectively shows the strength of support and resistance levels through numerical values and line thickness, helping traders identify strong and clustered levels on the chart.

03:04

Volume price analysis on Bitcoin

03:04

The segment explains how to use volume and price analysis together with indicators on any market, demonstrated using Bitcoin. It highlights the surge in volume that accompanied market movements, showing buying activity supporting selling pressure. The price did not drop as low as volume alone would suggest, indicating buying support. The market then enters a phase of congestion within a narrow channel, which is expected to break out either upwards or downwards, presenting a breakaway trading opportunity. The principles apply universally, regardless of the market traded.

03:52

Upcoming crypto indicators development

03:52

The development team has transitioned to working with TradingView, focusing on creating specialized cryptocurrency indicators modeled after forex indicators. They are exploring opportunities to develop strength indicators and tools similar to a matrix, aiming to assemble these features for enhanced trading insights.

04:17

Currency matrix and range insights

04:17

The discussion covers upcoming indicator availability for TradingView users, noting that those with the full package will receive these tools free in due course. The speaker references the currency matrix add-on, which helps assess the range and value of currency pairs quickly. They explain how the matrix shows currency strength by indicating how far values are from overbought or oversold levels, providing a sentiment overview of the market conditions.

05:24

Volatility triggers and market equilibrium

05:24

The market is currently lackluster and moving sideways, requiring traders to focus on very fast time frames for effective trading. An example is given with the CAD/JPY pair during the London open, where a volatility trigger led to a move through resistance in a channeling pattern. This congestion phase builds around the volume point of control, represented by a yellow dashed line, which acts as the market’s equilibrium or fulcrum point, similar to a balanced seesaw where opposing forces keep the market stable.

06:24

Volume confirms genuine breakouts

06:24

The speaker explains market equilibrium and how changes in participant weight cause price movements within defined levels, creating a channeling effect in accumulation and distribution. When the market breaks away from these regions, often confirmed by volume, it signals a genuine move rather than a fake out. This breakout forms a wedge of price-based support, offering a protective barrier against pullbacks and aiding in stop placement and risk management.

07:22

Volume is emphasized as a critical factor in confirming the authenticity of price moves, with volume acting as both resistance and support similar to price levels. Low volume nodes allow prices to move quickly through those areas, whereas higher volume zones require more effort to penetrate. The discussion highlights how volume dynamics and congestion zones influence the effort needed for price movements, reinforcing the importance of volume analysis in market behavior understanding.

08:46

Price and volume support resistance

08:46

The discussion focuses on support and resistance in trading, distinguishing between price-based and volume-based types. The CAD/JPY pair is still in an overall bullish trend despite a recent pullback. Volatility is expected due to upcoming Bank of Canada announcements. Although the yen is currently rising alongside the CAD, the trend’s strength is moderate. Large positions in yen pairs and a yen basket have been held for months, but some unwinding of these positions has begun recently.

09:40

US indices narrow fragile trading

09:40

The US indices are showing signs of fragility on slower time frames, with very narrow and difficult price action making trading challenging. The YM is struggling around a key level, exhibiting tough and narrow trading ranges. Meanwhile, the NQ has experienced recent surges and continues to attempt pushing higher despite mixed market conditions. If the NQ can break through the 14,000 level, it might help lift other markets, but this remains uncertain. Overall, market movements are heavily influenced by sentiment, which plays a crucial role in trading across all markets.

10:42

Market sentiment and risk-reward

10:42

The speaker explains that the core principle in markets is money chasing risk and reward—higher risk attracts higher reward, while lower risk yields lower reward. The current market is described as very nervous and fragile, lacking clear volatility or momentum. Patience is emphasized as essential during this uncertain period, with the example given from a TradeStation platform.

11:12

TradeStation platform and features

11:12

The speaker explains a setup where a TradeStation platform is linked directly to an Interactive Brokers account, allowing trading of virtually every instrument available through Interactive Brokers, including spot forex. They highlight the powerful front-end capabilities of TradeStation and describe their specific setup monitoring currency futures such as the Australian dollar (6A), British pound (6B), Canadian dollar (6C), euro (6E), New Zealand dollar (6N), and Swiss franc (6S), all traded against the US dollar. The speaker also mentions using a trend monitor on the radar screen for these instruments.

12:15

Currency futures trend monitoring

12:15

The speaker discusses using quantum trends and dynamic volatility indicators to visualize market trends, particularly for the dollar. Blue and red colors indicate whether the dollar is being bought or sold, providing a quick visual cue. They demonstrate clicking through to a specific chart on the 6B one-minute interval where a recent volatility trigger occurred. The chart is expanded for a clearer view, and the speaker assesses whether the volatility event is worth trading, concluding it is not particularly attractive for trading.

13:10

Volatility triggers on TradeStation

13:10

The speaker explains the volume point of control (VPOC) histogram used across various trading platforms like TradeStation and NinjaTrader, highlighting its components such as low and high volume nodes. They note minimal volatility in the Australian dollar over the recent 42 bars on a 15-minute chart, indicating a sideways and complacent market with congestion. The discussion extends to other currency pairs like the New Zealand dollar, showing similarly mixed and non-trending behavior. The trend monitor reflects this transitional phase with no strong trend, and the currency strength indices on fast time frames (one to five minutes) also show mixed signals.

14:24

Sideways price action in forex pairs

14:24

The speaker discusses the current market conditions characterized by significant sideways price action with no strong trends. They note some euro buying activity, particularly when observing the euro charts, suggesting potential opportunities in currency pairs like Euro/Aussie. The speaker advises that if one intends to trade in these sideways markets, it may be necessary to focus on faster time frames or even tick charts to find actionable movements.

15:25

Choosing forex pairs with tight spreads

15:25

The speaker advises that in the current fast-moving market, traders need to act quickly and focus on currency pairs with very tight spreads. Trading pairs like the euro-aussie is impractical due to wide spreads of five or six pips. Instead, pairs like the euro-dollar, which have tighter spreads around three pips or less, are more suitable, especially for scalping strategies. The key is to avoid cross currency pairs with wide spreads and focus on major pairs with tight spreads. The speaker also mentions the usefulness of fast time frames and tick charts to better understand market conditions, noting that the tick charts currently show sluggish activity.

16:50

Tick charts show sluggish markets

16:50

The speaker discusses monitoring three different time frames—15 seconds, 30 seconds, and one minute—displayed across the top of the chart, with corresponding tick charts below. They adjust the tick rate settings to match the appropriate values for each chart. The current market activity is slow, indicated by predominantly orange colors with occasional green pulses representing volatility injections. The overall trend is sideways with little movement, emphasizing the importance of patience despite the difficulty in waiting during such market conditions.

17:45

Finding indices and stocks on platforms

17:45

The speaker discusses the availability of various financial instruments on TradingView, including indices like US 30, UK indices, the DAX, and the Nikkei 225. They mention that cryptocurrencies, stocks, commodities, and other indices are also accessible on the platform. The speaker notes some uncertainty about the exact naming of the YM index but confirms it should be available. Finally, they point out that indicators can be found on quantumtrading.com.

18:47

Indicator licensing and upgrades

18:47

The speaker explains that one license covers both NinjaTrader 7 and 8 platforms, so no second license is needed. Customers who purchased the TradingView package should have received additional indicators free of charge after recent updates. If these indicators were not received, customers are advised to contact the helpdesk for assistance. The discussion also covers two versions of TradeStation: the US version (10 and above) using TradeStation’s data feed, and TradeStation Global (version 9.5) using Interactive Brokers’ feed. All indicators and radar screen options work on these platforms.

20:12

Customers who buy one indicator are credited if they upgrade to bundles, full packages, or switch to education programs, ensuring no loss in value. The company allows free migration between platforms such as MC45, TradingView, or NinjaTrader, with no additional charge except the price difference if moving to a package with extra indicators. The speaker emphasizes that this flexible and customer-friendly approach contrasts with other companies that charge for platform switching.

21:01

Platform migration and pricing

21:01

The speaker discusses the complexity of the feed and the available indicator arrays on various platforms. They mention special bundle deals on the site and encourage viewers to check them out. If a desired product is not listed, customers are advised to contact the helpdesk via email. The speaker also highlights that Anna and all the books are available on Amazon in both Kindle and paperback formats.

21:28

Books and online resources

21:28

The speaker expresses gratitude for the strong sales and positive feedback on their work, acknowledging occasional criticism as part of the free world. They mention that all posts are available online, including contributions by Anna on investing.com and possibly fx empire. Finally, they direct listeners to quantumtradingeducation.com to conclude the forex education program.

21:58

Quantum Trading education program

21:58

The program described is a comprehensive forest trading course developed over two years, designed to equip traders with all the necessary knowledge to trade confidently. Recently, a funded trading program was introduced, allowing students to trade with the company’s money rather than their own, eliminating personal risk. Traders can start with accounts of $5,000, $10,000, or $15,000 and must reach a predetermined target based on trading 28 currency pairs. This phase is called the evaluation stage, where both the trader’s consistency and the program’s assessment are conducted.

22:59

Funded trading accounts and targets

22:59

The program increases trading capital progressively based on consistent achievement of targets, starting from $15,000 and scaling up to over $2 million by doubling at each level. Profit kickbacks are offered, starting at 35% during the evaluation stage, increasing to 50% at higher levels, and reaching 60% for accounts over one million, with rebates paid monthly. Beyond the evaluation phase, additional trading markets such as indices and gold are made available alongside 28 currency pairs. This opportunity is exclusive to students and not available to the general public.

23:57

Program exclusivity and closing remarks

23:57

The speaker informs that certain content is exclusive to quantum trading education students and not available to others. They thank the audience for attending, mention there will be no webinar that afternoon, and that sessions will likely resume around the same time next week. They advise patience as market momentum is expected to pick up later, encouraging viewers to wait for better trading opportunities. The segment ends with well wishes for the rest of the trading day and week, along with a friendly goodbye.

By Anna Coulling – creator of volume price analysis