Trading success is all about levels and flow

Trading success is all about levels and flow

Levels and flow define the areas of congestion, support, and resistance & finally accumulation and distribution using volume price analysis and the Quantum Trading tools and indicators.

00:18

Using Renko and Camarillo levels for analysis

00:18

The speaker explains that by coincidence, Dave David picked up on the same market movements they had been analyzing using NQ charts. They mention using a combination of Renko charts and Camarillo levels to track strong price action over the day and week. Due to the intensity of the price movement, they had to use the slowest timeframe, the hourly chart, to identify a key level that the index is likely heading towards.

01:06

Indicator shows six levels and breakout

01:06

The speaker explains a program designed to identify six levels instead of the usual four within the camera protocol. Using a faster three-minute chart, they demonstrate that the indicator has already surpassed the sixth level (S6). They also reference a Renko chart to better illustrate how the levels are being exceeded.

01:41

Levels refreshed every 24 hours

01:41

The speaker explains a breakout or breakaway scenario in market movements, discussing how indicator levels are programmed to refresh every 24 hours for charts up to the hourly timeframe. They highlight that for faster charts, fresh levels are updated once the market closes, while levels calculated from hourly to daily charts remain stable for longer periods.

02:17

Weekly levels guide monthly trends

02:17

The speaker explains the importance of using different timeframes, such as 24-hour and weekly charts, to identify key trading levels. These levels help traders focus on where price movements might pause or reverse, providing guidance on potential stops during volatile price action. The weekly chart is highlighted for its relevance in setting levels that can influence the market for an extended period, such as the rest of the month.

02:50

Levels indicate pause or reversal points

02:50

The speaker discusses the importance of recognizing when they are in a trade and where the price action is heading. They emphasize having a clear stopping or pause point when not confident about joining ongoing moves, considering potential bounces or reversals. The strategy involves anticipating retests of levels if a trade is taken.

03:21

VPA anomaly and volume trends

03:21

The speaker analyzes a three-minute chart highlighting a volume price analysis (VPA) anomaly characterized by rising prices but falling volume, indicating a lack of momentum. They observe that the price movement is not a straightforward downward trend but includes periods of congestion and attempts to move lower. The key breakout point is identified at the volume point of control around 99.20.

04:02

Key support and resistance levels

04:02

The discussion focuses on price movements around a key support level known as S2 at 97.38. The speaker explains that if the price breaks through this level, the next target is around 97. They also mention using Renko charts, which are non-time-based, to analyze price action while still considering levels from other timeframes. The current move is described as a decline from the S6 level near 9,100, which previously acted as strong support but has now become resistance, resulting in a sustained downward trend. The speaker briefly checks additional market data on investing.com to verify the situation.

05:09

Market overview and volume price analysis

05:09

The speaker discusses the current market downturn, noting significant drops in major indices like the Dow and S&P. Emphasizing a volume price analysis methodology, they highlight the importance of looking beyond charts to understand market signals. Patience is necessary as these signals often take time to develop. Using examples from the YM futures market, they point out the identification of anomalies through narrowing spreads and volume patterns, which can indicate underlying market shifts.

06:24

The discussion continues around the concept of the volume point of control as a key equilibrium level where there is no strong push in either direction. Traders must wait for a breakout from this congestion to signal market movement. This relates to Wyckoff’s second law, which states that the longer a market remains in congestion, the stronger the breakout when it eventually occurs. The speaker illustrates how this principle applies to daily charts, explaining why prolonged sideways trading builds momentum for significant moves.

07:38

The speaker examines the Nasdaq’s continued downward movement, noting established support levels as potential points for buyer interest. They discuss common trader beliefs about reversals following extended runs in one direction, cautioning that while reversals may occur after several consecutive up or down sessions, confirmation through refuels is necessary. The segment ends with a brief exchange between speakers, reinforcing that market interpretation requires careful analysis rather than assumptions.

By Anna Coulling – creator of volume price analysis