Trading in multiple time frames

Trading in multiple time frames

In this video we focus on the importance of the daily time frame, significant levels & how they come into play once a trend is underway.

00:12

Using non-time-based charts for Pound Yen moves

00:12

The discussion focuses on trading the pound yen using non-time-based charts, which may be necessary given the recent market moves. Traders often start their sessions at different times and face challenges with strong price movements. While some use limit orders based on analysis from 30-minute or hourly charts, most traders prefer market orders and faster timeframes. The pound yen experienced a significant upward move, partly catching up with movements seen in the Australian and New Zealand yen pairs.

01:26

Considering session impact on Pound Yen trend

01:26

The discussion focuses on trading strategies during the London session, highlighting the prominence of the pound and euro. It explores whether to wait for a market reversal or to continue following the prevailing trend, considering different currency pairs like the yen, Aussie yen, and New Zealand dollar. The speaker emphasizes the importance of clarifying one’s approach—whether to trade reversals or join ongoing trends—and introduces the use of non-time-based charts like Renko to better identify potential entry points during trend movements.

03:15

Identifying tradable pullbacks with indicators

03:15

The speaker explains a recent market pullback that was not tradable because key indicators did not signal a reversal. Although there were signs like red dots at the bottom of the brick and some congestion, the crucial trend monitor indicator did not change color. This suggests the downward move was unlikely to continue. Traders need to be patient and wait for a clear color change on the trend monitor to confirm a potential reversal and trade opportunity.

04:24

Support and resistance on daily chart

04:24

The discussion focuses on the importance of support and resistance levels in the Pound/Yen daily chart. The pair has reached a significant price region known as the volume point of control, which also corresponds to a major historical resistance area. This suggests potential price congestion before any breakthrough occurs, requiring strong buying momentum and positive sentiment towards the British Pound, accompanied by higher equities. The explanation includes the use of price-based support and resistance lines on MT5 and MT4 charts, where line thickness indicates the strength of the region. Additionally, an indicator based on Camarillo has been developed to calculate six key levels for these zones.

06:12

Hourly chart levels and volatility analysis

06:12

The discussion focuses on the pound-yen currency pair and how its price levels are recalculated every 24 hours on timeframes up to but not including the hour. The pair has broken through the last significant level on the hourly chart, raising questions about where it might head next. The next potential resistance is identified around the 130.65 level, near the daily volume point of control. A volatility candle on the hourly chart suggests a likely pause and possible retracement into the candle’s range. By analyzing each currency separately, it is noted that the pound still shows buying potential while the yen appears very overextended, indicating a possible further upward move before a reversal.

08:01

Entry validation using non time-based charts

08:01

The speaker discusses using a non-time-based chart to identify optimal entry points for reversals versus pauses in a primary trend. They emphasize validating entries with support and resistance levels, candle patterns, and volume. The example shown is from the NinjaTrader platform, which offers a unique click speedometer indicator not available on MT4 or NT5 due to data limitations. This indicator will also be available on TradeStation.

09:12

Tick speed indicator and market participation

09:12

The speaker explains the limitations of traditional time charts in gauging market activity and noise, comparing them to the dynamic environment of old trading pits. They highlight how Renko and tick charts complete candles based on price movement rather than fixed time intervals. The tick speed indicator helps identify periods of high market activity or quietness, showing when buying and selling are frantic or when volume and participation decrease.

10:21

The discussion focuses on how volume can be interpreted as trader participation, which is not easily seen on time charts. The speaker notes the importance of volume in driving market moves and volatility, pointing out a recent high level of participation that hit a resistance point and then calmed down. They emphasize the need for renewed energy to push the market further and suggest that the current market behavior indicates resistance to falling, possibly hinting at a reversal.

11:26

Support and resistance levels, particularly the R4 and S4 on the Camarilla indicator, are identified as crucial for predicting potential reversals or breakouts. The speaker advises traders to interpret price action based on their trading style, whether they prefer quick reversals or longer trend-based trades. They stress the importance of volume and participation in confirming these moves and suggest waiting for pullbacks to validate trades within the trend.

12:38

Traders are encouraged to assess market participation carefully, especially during the London session, where active trading is expected. The speaker warns against trading in low-participation markets, which often show red signals indicating hesitation. They also note that the lack of fundamental news at the end of the month can lead to position squaring, affecting price movements. Monitoring overall market sentiment, especially related to virus developments, is also important.

13:46

The speaker highlights that low participation during downward moves signals an anomaly unlikely to result in significant price changes. They address a viewer’s question about handling anomalies in live markets, emphasizing the need to study historical examples to recognize and not be surprised by such patterns. Understanding when volume does not support reversals helps traders remain confident in staying with the main trend.

14:47

The session concludes with a reminder that recognizing anomalies through study of past examples allows traders to better handle real-time market signals. Minor pullbacks unsupported by volume should not cause undue concern. The speaker answers questions regarding data feeds and brokers, clarifying that the demonstration uses a kinetic data feed without a broker connection, and briefly mentions trends and indicators without further elaboration.

16:23

Live edge chart reading and trading methodology

16:23

The speaker emphasizes the importance of reading market charts at the live edge, recommending using fast charts like 15-second or one-minute charts in platforms such as MT4 or MT5. They highlight how this practice, combined with understanding key trading elements like support, resistance, candle patterns, and multiple timeframes, enhances the effectiveness of the volume price analysis methodology. This methodology helps predict market movements, reduces emotional reactions, and supports holding positions to maximize profitability.

17:54

The speaker provides a quick overview of resources available on Anna’s site, including latest posts, books, and links to other sites. They also mention the comprehensive Forex education program offered, which covers everything necessary for success in forex trading.

18:22

Overview of Forex education program and indicators

18:22

The program includes five core modules covering psychology, fundamentals, relational, technical, and mechanics of trading, along with numerous additional resources such as webinars, library topics, and examples on using indicators. It is a comprehensive package that also offers full access to a variety of indicators across multiple platforms including MT4, NinjaTrader, and TradingView. Members also gain access to a supportive trading room hosted daily by the instructors, fostering community interaction and assistance.

19:19

Details about the indicators can be found on quantumtrading.com, covering MT4, NinjaTrader 7, and TradingView, with TradeStation support coming soon. The program plans to update TradingView indicators to match the full package and will later expand to include MultiCharts. TradeStation support will encompass versions 9.5 and beyond.

19:45

Trading platforms and future sessions info

19:45

The speaker explains that version 9.5 of the software represents a partnership between TradeStation and Interactive Brokers, allowing users with Interactive Brokers accounts to trade using TradeStation’s platform, combining TradeStation’s features with Interactive Brokers’ market access and spreads. They then mention TradeStation Securities, version 10, which includes advanced features like the RadarScreen and offers a powerful trading platform. The session concludes with thanks to the audience and information about upcoming sessions: U.S. futures on Thursday afternoon and Forex next week.

20:45

A brief closing remark reminding viewers about the Thursday U.S. futures session and a farewell until the next meeting.

By Anna Coulling – creator of volume price analysis