Discover the power of volume price analysis for yourself

Discover the power of volume price analysis for yourself

In this video I explain some of the basic principles of the volume price analysis methodology and what it will do for you whether as an intraday trader or longer term investor.

00:01

Webinar introduction and disclaimer

00:01

The host welcomes attendees to the afternoon webinar, noting the pleasant weather in Hampshire. They express appreciation for the audience’s time and introduce their husband David, who is present but not speaking. The host also mentions an upcoming disclaimer before proceeding with the webinar content.

00:31

Session overview and risk warning

00:31

The session begins with a caution about the risks involved in trading, emphasizing not to use money one cannot afford to lose. The presenter acknowledges a mixed audience of forex students, quantum users, and newcomers. The focus of the webinar will be on analyzing charts and reviewing the markets in general.

00:59

Introduction to volume price analysis (VPA)

00:59

This segment introduces volume price analysis (VPA), a methodology that examines price action alongside volume activity. VPA also incorporates support and resistance levels, candlestick patterns, and time factors. The explanation addresses common questions about what VPA does and why it is useful.

01:36

Benefits of combining price action with volume

01:36

The speaker explains that traders can continue using their preferred price action and indicator methods, but Volume Price Analysis (VPA) adds value by validating chart observations. VPA focuses on market participation and sentiment, assessing whether the market is positive, negative, or in a selling phase. It links volume activity with price action, highlighting mismatches that indicate potential issues. Additionally, a companion book provides practical examples of VPA applied mainly to stocks and indices.

02:50

VPA patterns repeat across markets and timeframes

02:50

The speaker explains that volume price analysis (VPA) applies to various markets, including commodities and Forex. They emphasize that VPA patterns and footprints consistently repeat across different timeframes and markets. The best way to understand VPA is by seeing it in action. The speaker also addresses common questions about how to use VPA and what benefits it offers.

03:28

Using VPA to support Elliott Wave analysis

03:28

The speaker discusses how volume analysis validates chart observations and supports existing trading approaches. They mention that many Elliott Wave traders traditionally do not use volume, but incorporating volume enhances the effectiveness of Elliott Wave analysis, providing a stronger confirmation of market movements.

04:05

Example: Pound Canadian 2-minute chart analysis

04:05

The discussion begins with the two-minute Pound Canadian forex pair chart, highlighting that the timeframe could be interpreted differently (e.g., 10-minute or hourly). The pair is currently in congestion, moving sideways around the volume point of control, which acts as both support and resistance within this range.

04:42

The price gradually moves away from the congestion zone accompanied by increasing volume, culminating in a significant volume spike candle. This is followed by a pullback, and the speaker notes that without volume confirmation, price action alone might not clearly indicate the move’s strength or validity.

05:17

Examining the price action reveals a potential reversal that is not very strong. The segment discusses an ABC pattern in trading, where the initial impulse (A) is followed by a correction (B). The volume analysis beneath the candles helps differentiate between a minor correction and a full reversal.

05:47

The correction phase (B) lacks strong participation, indicating limited momentum for a further upward move. Volume under the up candles is proportional, suggesting a moderate price increase without strong momentum. This volume-price relationship helps traders assess the strength of the move.

06:18

After a brief sideways movement, the price continues higher. The analysis will return to the Pound Canadian pair later to observe if it reverses or pauses at a key support and resistance level, especially as the U.S. trading session winds down and forex market activity typically slows.

06:57

Summary of VPA validation and next steps

06:57

The speaker explains the importance of BPA in validating chart patterns and confirming their authenticity. They mention how volume can support other technical analysis methods like Elliott Wave or ABC patterns. The speaker then indicates they will hand over to David and plans to return with additional insights and links related to current market conditions and potential developments in the coming week.

By Anna Coulling – creator of volume price analysis