Price Action And Volume In Harmony On Apple
Key Points
[00:06 ~ 01:25] Introduction and Context
The video aims to analyse Apple’s stock as an example of a solid, healthy uptrend supported by good volume. The presenter references a previous video discussing market behaviour in low-volume markets and mentions Apple as a contrasting case of strong volume-supported movement.
Important disclaimer: Trading is risky, and viewers should only use money they can afford to lose.
[00:46 ~ 02:44] Importance of Volume in Price Trends
Volume Price Analysis (VPA) helps interpret the relationship between price action and volume, especially in understanding when markets rise on low volume. The previous video used the SPY ETF as an example of markets going up on low volume, with nuances involving regular trading hours and futures markets. Apple is introduced as an example of a sustained trend with above-average volume, making it a better representation of a healthy market move.
[02:05 ~ 05:52] Apple’s Uptrend and Volume Characteristics
Apple has experienced approximately 11 consecutive sessions of upward movement, supported by volume significantly above its daily average. The presenter notes the complexity that some volume occurs in pre-market sessions, which can affect intraday trading decisions. The price action on Apple shows a near-V-shaped reversal, with technical signals such as a bullish engulfing candle and a doji at the bottom, which are usually indicative of trend reversals. Volume has been consistently solid throughout the upward move, helping the price overcome stiff resistance levels. The accumulation/distribution indicator confirms strong resistance levels by showing thick lines where the price encounters resistance, indicating significant volume at those points.
[05:16 ~ 07:44] Volume Point of Control and Price Targets
The volume point of control (VPOC), represented by a yellow-hatched line, marks the price level with the highest traded volume and serves as a key support/resistance level. Apple’s near-term resistance includes a double top just below $185, with an intermediate pivot at around $180.
On the daily chart, a recent gap-up open signals bullish momentum.
Weekly charts show similar resistance levels and volume patterns, with current prices near the fourth pivot, which often causes price pauses or pullbacks.
Volume on the weekly chart has decreased slightly from the previous week, and important market events like the non-farm payroll (NFP) report and end of the month could influence price action.
[07:53 ~ 09:49] Long-Term Perspective and Volume Trends
Looking back to 2009, Apple traded around $20 before stock splits and pandemic-related volatility. The monthly chart shows a strong vertical price increase accompanied by rising volume, illustrating how volume can validate large price moves over time. Historically, Apple sometimes moved upward on low volume, but more recently, volume has been healthier and more in line with price increases. This historical context highlights the importance of monitoring volume to confirm trends.
[09:13 ~ 11:39] Practical Application of Volume Price Analysis
Traders should constantly monitor price action, volume, support/resistance, and candle patterns across multiple time frames. The presence of confluence—resistance or support levels confirmed across multiple time frames—strengthens the significance of those levels. Additional volume is usually required to break through significant resistance. Volume Price Analysis is fractal and applicable to all time frames, from intraday (3-min, 5-min) to daily charts, allowing traders to repeat and refine their approach. Recognising signals and understanding what to look for provides a substantial edge over other traders and investors.
[11:00 ~ 12:45] Closing Remarks and Additional Information
Apple remains a compelling example of a volume-supported trend with clear levels to watch moving forward. The presenter plans to revisit Apple’s chart after key market events, including the end of the current week and the upcoming NFP report. The indicators shown in the video were developed by the presenter and her husband and are available on multiple trading platforms, including NinjaTrader, MT4/5, TradingView, and TradeStation via quantumtrading.com. The presenter thanks viewers and encourages trading education and awareness.
Key Conclusions
[02:05 ~ 05:52] Volume is a critical factor in validating and sustaining price trends, and Apple serves as a textbook example of a healthy uptrend supported by strong, consistent volume over multiple sessions.[05:16 ~ 07:44] Key price levels, such as the volume point of control and resistance pivots, provide important targets and potential barriers. These levels gain more significance when confirmed by volume and accumulation/distribution indicators.
[07:53 ~ 09:49] Historical volume trends provide essential context, showing that while stocks can rise on low volume, sustainable moves require healthy volume support to confirm trend strength.
[09:13 ~ 11:39] Traders who integrate volume price analysis across multiple time frames gain a significant advantage in identifying genuine trends, critical levels, and potential reversals.
[11:00 ~ 12:45] Continuous monitoring of volume and price action, especially around key market events, is necessary to adapt to changing market conditions and to maintain a disciplined trading approach.
Important Details
[00:46 ~ 02:10] The presenter’s previous video addresses why markets sometimes rise on low volume, using SPY and futures as examples, providing foundational knowledge for understanding volume dynamics.[02:46 ~ 04:02] Pre-market volume can distort average volume figures for stocks like Apple, complicating day trading strategies and requiring traders to be cautious about interpreting volume during regular trading hours.
[04:03 ~ 05:15] Specific candlestick patterns such as the bullish engulfing candle and doji at trend lows are important technical signals when combined with volume analysis.
[05:52 ~ 06:29] The volume point of control is visually represented as a yellow hatched line on the charts and serves as a key technical level for traders to watch.
[07:11 ~ 08:34] The weekly chart reflects a slight volume decrease compared to the previous week, and important macroeconomic events like non-farm payrolls can significantly affect price action going forward.
[08:37 ~ 09:49] The long-term monthly chart shows how volume and price action interplay over years, emphasising the fractal and scalable nature of volume price analysis.
[09:49 ~ 10:52] VPA principles apply across all time frames, allowing traders to use the same analytical framework on short-term and long-term charts.
[11:41 ~ 12:45] The custom indicators demonstrated are proprietary tools developed by the presenter and her husband, compatible with multiple platforms and available at quantumtrading.com, providing practical resources for volume price analysis.
[11:00 ~ 12:22] Upcoming geopolitical and economic developments, including the situation in Ukraine and Russia and the NFP report, are key external factors that could influence Apple’s stock movement and broader markets.
This comprehensive analysis of Apple’s chart and volume dynamics offers a practical template for traders seeking to understand healthy trends, emphasising the importance of volume, price action, and multi-timeframe analysis in effective trading strategies.
In this video, I consider Apple a great example of how strong, healthy volume supports higher prices. The question now is where the current trend is likely to pause and this is where the volume point of control on the daily chart comes into play.
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00:06
Introduction and disclaimer
00:06
The video introduces Apple as an example of a solid, healthy market trend supported by good volume, referencing a previous video on markets rising on low volume. The speaker emphasizes a trading disclaimer, warning viewers not to risk money they cannot afford to lose. The discussion touches on volume price analysis (VPA), which explains the relationship between price action and volume, and addresses the common question of why markets can still rise despite low volume.
01:28
Recap of previous video on market volume
1:28
The speaker refers to a previous video using the SPY as an example to illustrate key lessons about market behaviour. They discuss analysing the SPY to predict likely outcomes at the physical market open, contrasting it with the 24-hour trading of S&P futures. The segment lays the groundwork for understanding market dynamics through this example.
02:05
Apple’s strong trend and volume analysis
02:05
The speaker analyses Apple’s stock, highlighting its strong upward trend supported by unusually high trading volume over eleven consecutive sessions. They emphasise the importance of distinguishing volume traded during pre-market hours versus regular trading hours, as pre-market activity can complicate day trading strategies. The discussion includes recognising a healthy trend through volume patterns and chart formations, such as a V-shaped reversal and specific candlestick patterns like dojis, which indicate potential trend bottoms.
04:03
Candlestick patterns and resistance levels
04:03
The segment explains that a bullish engulfing candle, combined with above-average volume, signals a potential price reversal and upward movement in Apple’s stock. The volume initially shows a slight pullback, but then strengthens as the price moves through strong resistance levels identified by the accumulation distribution indicator. This indicator highlights resistance by thickening lines at key price points, indicating the need for consistent, healthy volume to push the price higher until it reaches the volume point of control.
05:16
Volume point of control and price targets
05:16
The volume hasn’t increased significantly, but it’s enough to push prices higher following a gap-up opening the previous day. The discussion focuses on the volume point of control, marked by a yellow hatched line, and a double top pattern just below $185. If the price surpasses the pivot at $180, it could test the double top near $183. This analysis is based on the daily chart, and a weekly chart review shows a similar upside target.
06:36
Weekly chart and upcoming events
06:36
The discussion focuses on a weekly chart where the price is between 180 and 185, with slight volume down from the previous week. The price is at the fourth pivot point, which often leads to a pause or retreat in price action. Volume judgments are limited since the week is not complete. Upcoming events, such as the end of the month and the Non-Farm Payroll (NFP) report on Friday, are expected to influence price movements. Historical context is briefly mentioned, with reference to Apple’s price around 2009.
07:53
Apple’s long-term volume and price history
07:53
The discussion focuses on stock market volume trends, specifically highlighting how Apple’s stock volume increased dramatically on a monthly chart, even as it was previously low during its rise. The speaker notes that low volume can sustain a stock’s upward movement until a significant event causes a reversal. They emphasise the importance of monitoring volume alongside price action, support and resistance levels, and candlestick patterns to make informed trading decisions.
09:13
Volume price analysis lessons and conclusion
09:13
The speaker explains the importance of analysing price action across multiple time frames to identify significant resistance levels. They emphasise that volume price analysis is fractal and can be applied consistently from short-term to daily charts. Recognising these signals repeatedly provides a significant advantage in trading. Using Apple as an example, the speaker highlights how understanding key levels and trends can inform trading decisions.
11:00
The speaker discusses upcoming market events, including the non-farm payroll report and geopolitical tensions between Ukraine and Russia, which could affect market movements. They mention a plan to revisit Apple’s performance next week after these events unfold. Additionally, they clarify that the chart indicators used are proprietary tools developed by the speaker and her husband, available on multiple trading platforms, and direct viewers to quantumtrading.com for more information.
12:13
The speaker concludes by thanking the audience, wishing them a successful trading day and week, and expressing hope that viewers have learned something valuable from the session.