Catch up with the GBP/AUD trade from earlier in the session

Catch up with the GBP/AUD trade from earlier in the session

00:10

Pound price action and volume analysis

00:10

The speaker provides an update on the British pound using a three-minute chart. They note that there has been significant volume activity, but the price movement is choppy rather than smooth. Despite ongoing buying interest, the pound consistently falls back, indicating a lack of sustained upward momentum. The speaker compares this to a smoother move observed in the euro, highlighting the difference in market behavior between the two currencies.

00:50

Volume point of control as support/resistance

00:50

The volume point of control is explained as a dynamic indicator that shifts with the buildup of volume over time. It serves as both support and resistance in price movements. The speaker highlights an instance where the price was just below this level, providing a solid support platform for a potential upward move. Although there is rising volume under two candles, the momentum appears to be struggling.

01:26

London open impact and price whipsawing

01:26

The speaker explains that the market movement will not be as smooth as with the Eurodollar due to the recent London market open, which causes initial volatility or whipsawing. Even 20 minutes after the open, this effect can persist. They are looking for the price to move above a certain level, indicating a strong platform of support, while also referencing the use of a tremor monitor for analysis.

02:00

30-minute chart and resistance strength

02:00

The speaker discusses the significance of the 30-minute timeframe in analyzing price movements. They explain how this timeframe helps indicate potential price directions and highlight the difference between weak resistance levels, shown as hatched lines, and stronger resistance, represented by thick lines on the chart.

02:34

Support/resistance line thickness explained

02:34

The speaker explains the differences between an indicator on the MT4 M25 platform and NinjaTrader. On MT4, the indicator has hatched and solid lines, while on NinjaTrader, the lines become progressively thicker to indicate stronger support or resistance levels. They also discuss a recent two-bar reversal accompanied by a reasonable volume, noting that the volume under the reversal bar is nearly as high as a previous one, which is considered encouraging.

03:06

Two-bar reversal and price movement

03:06

The speaker discusses a specific candle pattern, noting that if it were a strong sell signal, the candle would have been larger and closed lower. Instead, it resembles a doji with narrow wicks on both ends, indicating a potential upward move that is slow and uneven. The price movement is described as labored and not smooth, with the speaker mentioning that price tends to move sideways, up, or down, which is explained further in their program.

03:43

Volatility, congestion, and trading caution

03:43

The speaker explains that it is possible to have congestion phases or trends accompanied by high volatility. Such volatile conditions can make trading uncomfortable due to frequent price whipsaws. They advise avoiding trades in these choppy environments and instead seeking smoother price movements with less volatility for a more comfortable trading experience.

04:18

Higher highs/lows but choppy price action

04:18

The segment explains how to identify volatility in price movements. It notes that volatility indicators may not always trigger and highlights the presence of specific candle patterns during volatile moves. The price action is described as uneven and not smooth, with examples showing higher highs and higher lows, illustrating typical behavior during a move higher that includes retests of previous highs and lows.

04:51

Trading through turbulence analogy

04:51

The speaker compares trading to flying a plane through turbulence, emphasizing that while traders prefer steady, predictable market movements with clear, consistent price candles, occasional pullbacks and market fluctuations are inevitable. Despite the turbulence, the goal remains to reach the desired outcome.

05:20

Controlling position size and exits as trader

05:20

The speaker explains the importance of understanding market conditions and volume to confidently hold a trade. They emphasize that traders have limited control once a trade is active and must observe the market’s behavior patiently. Using the analogy of a turbulent flight, the speaker highlights the unpredictable nature of current market movements but reassures that the destination will be reached. They stress that traders can only control position size, interest, and exit points, which are the key factors to manage during volatile trading periods.

By Anna Coulling – creator of volume price analysis