Using non time based charts to see inside the price action

Using non-time-based charts to see inside the price action

00:14

Volatility and volume pickup

00:14

The speaker apologizes for a delay and focuses on analyzing the current market situation. They note the presence of volatility and a volatility trigger, indicating potential congestion with either a reversal or continuation within the range of a specific candle. Additionally, a volume increase is observed shortly after 8:01.

00:45

Staying with the trend and managing emotion

00:45

The speaker emphasizes the importance of staying with the trend in trading and managing emotions after securing a profitable position. They highlight the challenge of maximizing potential gains while being cautious during crossover periods, specifically referencing the European market opening and the London session starting.

01:16

Trend dots and trend monitor indicators

01:16

The segment explains the interaction between two trading indicators: trend dots and the trend monitor. Trend dots change color first, signaling phases where a trend is slowing down, transitioning into congestion (gray), or potentially reversing. In contrast, the trend monitor provides a more considered, longer-term view of the trend, determining whether changes in sentiment represent a true reversal or just a temporary pause.

02:21

Adjusting trend monitor sensitivity

02:21

This segment explains how the trend indicator and trend monitor function differently, with the trend indicator changing first and the trend monitor adjusting more deliberately. Users can customize the sensitivity of the trend monitor, speeding it up or slowing it down to see longer or shorter congestion phases. Additionally, the tick speedometer is introduced as another tool for analysis.

02:50

Tick speedometer and market participation

02:50

The segment explains a participation activity indicator that tracks volume changes. It highlights increased volume as seen in London, using color codes: green for high participation, orange for expected activity levels, and red for sluggish periods.

03:24

Volume patterns in congestion phases

03:24

The video explains that during congestion phases, trading volumes tend to decrease and price action narrows. This is followed by a rise in volume and activity as the market moves away from these areas. Currently, the market is exhibiting signs of reversing into congestion, potentially signaling a full reversal from a bullish to a bearish primary trend.

03:55

Managing positions during congestion

03:55

The speaker discusses market congestion and suggests that traders who entered early might consider closing their positions or taking profits to avoid potential losses if the market moves higher. They emphasize the low cost of trading and the strategy of scaling out by taking some profits while leaving part of the position open. The current market shows congestion and a pullback, which is attributed to the London market opening. The speaker refers to this congestion phase as an example of cause and effect in the market, observed on the three-minute chart.

05:14

Cause and effect in congestion breakout

05:14

The speaker explains a phase of market congestion around the 80,170 price level, highlighting the volume point of control and a strong resistance level that acts as support once price moves away. They emphasize the principle that all congestion phases eventually break out, and the stronger the congestion, the further the price tends to move after the breakout. Using a three-minute chart example from 7 AM, the speaker notes a 100-pip movement, challenging the belief that trends do not occur in faster timeframes and are only visible on daily or slower charts.

06:26

Trends in faster timeframes

06:26

The speaker addresses a misconception, emphasizing that certain events don’t occur daily and require patience. They highlight that the specific pair discussed often remains in a consolidation phase for a significant period but can produce very strong moves when it breaks out. The segment ends with a mention of renewed volatility.

07:00

Waiting out congestion and reversal

07:00

The speaker discusses a period of market congestion with high volume and emphasizes the need for patience. They explain that it’s important to wait for the congestion phase to resolve before determining whether the market will continue higher or reverse. The analysis involves looking at multiple timeframes, including a 60-minute chart and Renko charts, to identify potential entry points. The key takeaway is that one cannot catch every market movement and must focus on a few currency pairs while waiting for clear signals.

08:13

Focusing on selected currency pairs

08:13

The speaker discusses the challenge of choosing trading opportunities and the common regret traders feel about missed options. They suggest focusing on a specific set of currency pairs that align with the trader’s time zone and trading style. Using the British Pound as an example, the speaker highlights the importance of knowing a few pairs well, including their fundamentals and central bank influences. They mention an upcoming example involving the euro-yen pair that combines technical analysis, volume price analysis (VPA), and fundamental news. The speaker advises against dwelling on missed trades, emphasizing acceptance of the market as it is.

09:42

Choosing timeframes and trading style

09:42

The speaker discusses the importance of choosing trading timeframes that suit your comfort level and trading style. They emphasize deciding how long you are willing to stay in a trade, noting that some traders prefer faster timeframes due to smaller account sizes or emotional preferences. The key is to find a combination of timeframes that works for you, whether you prefer quick trades or can handle more volatile price action.

By Anna Coulling – creator of volume price analysis