Learn about proxy risk and currency pairs

Learn about proxy risk and currency pairs

The AUD/JPY is a proxy risk currency pair which reveals much about sentiment in the broad markets. Discover why.

00:15

Overview of news sources for trading data

00:15

The speaker discusses options for accessing news websites, highlighting both free and paid services. They mention several platforms such as Forex Live, Forex Flow, Investing.com, Reuters, and Bloomberg, noting that paid services like Reuters and Bloomberg can be expensive. They also talk about live news feeds available through some brokerage accounts like MT5 and Interactive Brokers, which offer free live data depending on the platform and the amount of data needed.

01:36

Aussie yen price and volume analysis

01:36

The speaker analyzes the Aussie yen currency pair on Forex, highlighting recent volatility driven by high trading volumes during a market plunge affecting emerging markets broadly. There was initial indecision followed by weakness and a downward move into a low-volume price region. This low volume area on the volume point of control suggests price could move through easily due to minimal support levels. The accumulation and distribution indicator further clarifies that the minor price supports have already been breached, while stronger support areas lie elsewhere, influencing potential future price action.

03:24

Volume point of control and market support

03:24

The price action has entered a region with very low trading volume, indicating minimal resistance to further movement. The market is expected to move down to around 72, where volume starts to increase again, signaling potential support. Volume at the volume point of control near 65.5 is unlikely to be reached. This low-volume region suggests the price will move quickly through it until it encounters higher volume areas, which typically cause congestion and slow down price movement.

04:49

Market congestion and potential reversals

04:49

The speaker explains the concept of congestion in the market, focusing on the potential for reversals or trend continuations when the market pauses. They emphasize the importance of the volume point of control, which is dynamic and shifts to the next level where volume is building, especially visible on shorter time frames like 1-minute or 5-minute charts. On daily charts, these volume areas build more slowly but eventually move as the market congests over time.

05:39

Using the Aussie Yen as an example on very short time frames (15 seconds and 1 minute), the speaker highlights that trading opportunities exist on the upside with volume point of control moving rapidly as volume builds and rebuilds. They note a low volume node that the price is expected to push through easily, but anticipate resistance where there is a significant volume build-up, indicating the market may struggle to move beyond that level.

06:27

Scalping and resistance levels explained

06:27

The speaker discusses volume point of control and its limitations for scalping, noting that only a few pips are available before encountering dense resistance levels. They observe bearish market conditions and multiple price-based resistance points. The analysis focuses on volume-driven price action, highlighting how volume under certain candles compares to benchmarks, indicating some weakness when volume and spread do not align as expected.

07:49

The discussion continues on volume price analysis, emphasizing the importance of comparing and contrasting candle bars to identify buying or selling pressure and market weakness. The speaker points out the concept of form resistance, illustrating how a specific level, marked with a number 5, has been tested five times, reinforcing its significance as a resistance point in the current market.

08:15

Significance of price resistance testing

08:15

The segment explains how price levels, like the volume point of control (VPOC), gain significance the more they are tested, similar to how muscles grow stronger with repeated use. Clusters of these price levels around a specific region indicate potential market congestion. Specifically, a cluster near the 30 to 34 price range suggests multiple reasons to expect market congestion there, combining price action, volume price analysis, and broader fundamental principles to understand market behavior.

09:16

Relational market analysis and fundamentals

09:16

This segment discusses the complexity of trading by highlighting the importance of understanding various interconnected market elements such as bonds, bond yields, currencies, equity markets, gold, and commodities. It emphasizes the relational aspect of these markets and the significance of recognizing when typical relationships break down, which often happens for a reason. The speaker suggests that gaining clarity on these principles can make trading more straightforward and enjoyable, reducing stress for traders, even those who are not specialized in forex trading.

10:17

Trading education program and resources

10:17

The forex trading program covers about 80-90% of essential knowledge applicable to any market, including detailed instruction on Volume Price Analysis (VPA), fundamentals, relational trading, trading mechanics, and psychology. The principles taught are universal, with forex as a significant but not exclusive focus. The speaker also mentions resources related to Anna and her trading science, including books available on Amazon in various formats.

11:23

Anna’s trading methodology has been widely accepted internationally, with publications in Japan, China, Taiwan, and ongoing negotiations in Vietnam. The books have been successful, going into reprints and second contracts. The methodology has positively transformed many traders’ lives across different trading fields and applications.

12:30

The suite of trading indicators is available for multiple platforms including MT4/5, NinjaTrader 7/8, and soon TradingView, benefiting from upgraded Pine Script capabilities. Development is also underway for TradeStation Global (version 9.5) with integrated Interactive Brokers functionality, and for TradeStation Securities version 10 and above, which features an advanced radar screen with all indicators fully operational. These platform expansions have taken considerable time but offer robust trading tools.

13:23

The education program includes core modules covering trading psychology, fundamentals, relational trading, technical analysis, and trading mechanics. It offers around 200 hours of video content, 13 PDF downloads, and access to a VPA chat room hosted by Anna and the speaker, where many traders actively participate and share insights.

13:49

Community and session wrap-up details

13:49

The session concluded with appreciation for the diverse group of traders, ranging from novices to experienced individuals who generously share their time. The host expressed gratitude to attendees, hoped they enjoyed the session, and noted the smooth technical setup with fiber internet. Participants were encouraged to enjoy the ongoing trading sessions, have a great weekend, and return for the next meeting on Tuesday morning at 7:45 UK time for the London Forex session.

By Anna Coulling – creator of volume price analysis