How to avoid the market maker traps at the London open – so simple with volume price analysis

00:21

Introduction to Forex workspace and currency strength

00:21

The speaker introduces a change of scenery by switching to the forex workspace. They explain that this workspace is typically used to start with multiple currency strength indicators to identify market movements, including which currencies are strong, overbought, oversold, or moving together, helping to determine which are currently not of interest.

00:47

Strong buying in Yen and selling in Pound

00:47

The speaker discusses strong buying activity in the Japanese yen and strong selling in the British pound over the past hour during mid-morning in the UK. They highlight a profitable trading opportunity from the pound moving from an overbought position and the yen from an oversold position, before indicating an intention to shift focus to a different Forex-related topic.

01:22

Currency matrix manual and linked time frames

01:22

The speaker introduces the currency matrix manual, a workspace featuring six major currency pairs displayed in the same timeframe. This workspace is linked using the Ninja Traders platform, allowing synchronized time adjustments across all charts. The current setup includes one-minute charts of the pound dollar, Aussie dollar, euro dollar, and New Zealand dollar on the top line.

01:51

Focus on Cable at Europe and UK session crossover

01:51

The speaker discusses currency pairs including the Canadian and Swiss dollars, focusing primarily on the British pound (cable). They highlight the significance of the market crossover times between Europe and the Far East, illustrating the context of trading activity around 8:00 London time when the markets open for the speaker’s region. The speaker adjusts the chart view to better demonstrate these market interactions.

02:29

Session crossover traps by market makers

02:29

The European markets open with a notable upward trend in the cable between Europe and the UK opening times. The speaker highlights the common market behavior during the session crossover at 8:00 AM UK time and 1:00 PM US time, which is a frequent strategy used by market makers to induce traders into weak positions. This tactic is described as highly profitable and occurs nearly every day. The speaker notes the absence of a volatility indicator, choosing instead to focus on accumulation.

03:08

Using volume price analysis to avoid traps

03:08

The speaker focuses on a chart area to demonstrate how volume price analysis can help traders avoid market traps by revealing the true market dynamics behind price movements. The market trend is observed from the European open around 7:00 to 8:00, showing a rising trend.

The speaker warns new traders who might enter long positions at this stage, explaining that such decisions can be fatal. They emphasize the importance of comparing volume to price action, questioning whether the volume behind a particular candle is reasonable or unrealistic, and suggesting that volume price analysis provides crucial insights into market balance.

04:23

Volume anomalies reveal market traps

04:23

The speaker analyzes an anomalous price-volume relationship during the London trading session compared to previous bars in the European session. Despite a significant price move, the associated volume is unexpectedly low, contradicting the typical correlation between price movement and volume (effort versus result).

This discrepancy indicates a trap move orchestrated by market makers to lure traders into a false breakout, leading to either price congestion or reversal, as confirmed by volume-price analysis.

06:01

Two bar reversal explained with volume analysis

06:01

The speaker explains the concept of a two-bar reversal pattern in trading, noting that low participation from market makers is due to insufficient volume. They describe a setup with a candle showing lower spread but higher volume, followed by a red candle with very high volume, indicating weakness and an upthrust scenario. By overlaying two candles and combining volume bars, one can identify a two-bar reversal to the downside, signaling potential market weakness.

The speaker also mentions a smaller two-bar reversal to the upside, resembling a hammer candle, which can lead to a minor rally. This analysis is contextualized around the start of the European trading session at 7:00, following the Far East session and leading into the London session.

07:33

Trapped traders and coaching program promotion

07:33

The speaker discusses traders trapped at a certain price level, many of whom may have been stopped out or closed at a loss. They briefly explain volume price analysis and mention that this topic is covered in their coaching programs, which are limited in enrollment. Further details are available on Anna’s website, anacooling.com.

08:03

20% discount for education and indicators

08:03

The speaker announces a 20% promotion on education programs and indicators using the promo code LS 20% directly on the shop. For customized indicator bundles with the discount, customers are encouraged to email helpquantumtrading.com specifying their interests. The video concludes with a note of appreciation and a promise of more content to come.