Volume price analysis examples across the timeframes

Volume price analysis examples across the timeframes

00:10

Introduction to Renko and multiple time frames

00:10

The speaker welcomes the audience and confirms audio and screen sharing are working. They introduce the use of multiple Renko charts on the Anova’s Omrenko platform, explaining how the indicator is applied similarly to multiple time frames. The bottom charts show 15-second, 30-second, and one-minute intervals, and the speaker refreshes them to display the current brick sizes, noting the settling values for each time frame.

01:19

Renko bricks value and momentum vs time charts

01:19

The speaker explains that each brick in the chart represents a $5 point, making each brick worth over $100, highlighting the significant profit potential per brick. Unlike traditional time-based charts, Renko and tick charts focus on momentum and price movement rather than time intervals. These charts update based on price changes—in this case, every 10 points—allowing them to reflect market speed and volatility more accurately, independent of time.

02:19

Trend dots and trend monitor indicators explained

02:19

The segment explains how Renko bricks form independently of time, with each brick potentially taking varying time intervals to form. It introduces two indicators: trend dots that respond quickly to price changes and the trend monitor that offers a longer-term trend perspective. The trend dots change color and signal short-term trends, while the trend monitor lags to provide a more considered view. Together, these indicators provide complementary perspectives—one closely following price action for scalping and the other giving a broader trend overview. The Renko chart delivers very precise trend signals without noisy price spikes, but it lacks volume and price analysis tied to time, which is why it is often blended with traditional time-based charts for comprehensive trading insight.

04:18

Volume price analysis with time charts

04:18

The speaker analyzes a 15-second time chart using volume profile analysis (VPA), focusing on identifying anomalies such as highs, lows, and volume spikes. They observe selling pressure indicated by wicks on candles and volume surges, which signal potential market weakness. The discussion highlights how volume changes correlate with price action, noting periods of rising and falling selling volume that suggest market dynamics and potential reversals.

05:09

Attention is drawn to a significant volume spike where price movement is minimal, emphasizing the importance of volume clues in assessing market strength or weakness. The speaker introduces additional indicators, such as the accumulation distribution indicator, which highlights a strong resistance area related to price and volume. This analysis helps anticipate potential price reactions at key levels.

05:35

As the market breaks through the identified resistance, it declines sharply, then retraces to test previous levels. The price moves away from the volume point of control, signaling a developing trend. The speaker explains how a trend monitor shows transitional color changes that represent different trend phases, noting an unusual pattern where the typical dark blue phase was skipped, indicating a strong downward market trend.

06:06

The trend monitor’s color changes provide confidence that the market is trending lower. The speaker also monitors the VIX (volatility index) on another screen to gauge market sentiment. This multi-indicator approach, combining volume, price, trend colors, and volatility, forms the basis of their ongoing market analysis.

06:32

Volume point of control and market movement

06:32

The speaker analyzes volume on a 15-second chart, noting that volume is falling, which suggests less effort is needed for the market to move lower through this area. Low volume zones indicate the market can move swiftly without congestion. Below these zones, more defined price-based support levels appear. The 15-second timeframe provides an early warning signal for scalping or short-term trades, offering a close view of market behavior.

08:01

The market shows confirmation as volume and price move in agreement with a widespread downward candle followed by attempts to rally with mixed volume strength. The speaker notes some weakness in the price action despite decent volume on the rally attempts. They observe the VIX flattening after a heavy fall, suggesting a possible pause in market movement at certain support levels on this timeframe.

08:58

Volume clusters and support/resistance levels

08:58

The discussion begins with an analysis of volume point of control (VPOC) across different time frames, highlighting how lower time frames like 15 seconds can obscure important market information visible on higher frames such as 30 or 32 seconds. The VPOC indicates where the heaviest volume has traded, explaining why the market pauses at certain price levels.

09:27

The volume point of control is described as a precise indicator of support and resistance, shown graphically with varying line thickness to represent the frequency of testing at specific price levels. This visual representation helps traders quickly identify strong clusters of volume concentration, which are more significant than isolated or lightly tested areas.

10:29

The speaker explains that clusters of thicker volume lines indicate stronger support or resistance zones, while isolated thin lines suggest weaker areas. The volume indicator’s color coding also reflects market trends, though trading does not always follow predictable patterns. A transition to the one-minute chart is introduced for further analysis.

10:59

On the one-minute chart, the volume point of control again marks areas where the market is likely to congest, explaining current pauses. The discussion shifts to the VIX index across multiple time frames, noting a recent strong surge followed by a rollover. The daily chart shows a pickup in volatility, which correlates with a slight pullback in equities.

11:28

Further market context is provided by observing the yen’s movement, represented by a magenta line on a short-term chart. Yen buying activity is increasing, which aligns with the broader market developments and volatility trends discussed earlier, confirming expectations based on the observed price action.

12:04

Choosing and sticking to your trading time frame

12:04

The speaker discusses the importance of having all necessary intraday data fragments to trade successfully. They highlight observing transitional changes on different Renko time frames, emphasizing the critical need for traders to commit to a specific time frame such as 5-minute or 15-minute and avoid switching between slower or faster frames. Sticking to a chosen time frame is crucial to avoid confusion and ensure consistent decision-making.

13:32

The speaker advises traders to firmly decide their trading approach and stick to it, accepting that losses are part of trading. They stress the importance of learning to lose comfortably without regret, leaving ego aside, and recognizing that the market is always right. This mindset helps traders move on quickly from losses and maintain emotional discipline.

14:28

The discussion continues on risk and money management, emphasizing tight stops and staying within predefined risk limits. The speaker warns against revenge trading after losses, reminding that the market is indifferent to individual traders. Attention shifts to analyzing related markets like YM, NQ, and ES, noting that while these markets often move together, there have been periods of divergence driven by a few major stocks.

15:31

The speaker examines the ES market on a 5-minute chart, focusing on a large volatility candle accompanied by high volume. They question whether price movement and volume are in agreement or disagreement, concluding that in this instance, they are showing signs of disagreement, which is critical information for trading decisions.

16:01

Effort vs result in price and volume action

16:01

The segment explains a market situation where a candle that should be wide and strong is instead compressed, indicating significant selling pressure despite high volume. This suggests that although there is effort from sellers, the price action remains weak and narrow, showing a lack of upward momentum. The analogy of driving up a steep icy road illustrates how increasing pressure fails to move the market forward, reflecting a disconnect between effort and results. The discussion highlights the presence of volatility candles driven by big market operators, but the overall price action remains constrained.

17:24

This part focuses on the volume dynamics of subsequent candles, noting volume is falling even as price attempts to reverse. The presence of doji candles and diminishing volume indicates weakening selling pressure during the reversal. This anomaly—where volume does not confirm price moves—is typical over multiple candles. Despite this, the overall trend monitor remains bullish, suggesting caution for traders who might consider securing profits while observing future price developments. The segment advises monitoring volume trends carefully to anticipate market phases.

18:33

The presenter suggests taking profits after a bullish run and waiting for new price action to unfold, noting the VIX is moving sideways, which corresponds with sideways price action in the indices. Attention is then directed towards gold, highlighting the importance of watching the relationship between gold and the dollar in the coming days and weeks. If both rise together, it could signal notable market developments, as has been seen in past years.

19:10

Gold and dollar volume point of control analysis

19:10

The speaker discusses the current state of the gold market, noting that gold is experiencing a slight uptick but faces significant resistance due to a large volume point of control. The volume is declining, indicating weakness. They also explain the importance of monitoring time and sales data, particularly large blocks of sales, as small orders have little impact. The reaction of the market to large volume trades is a key indicator of strength or weakness.

20:07

The focus shifts to analyzing multiple charts and timeframes, including tick charts and the VIX index. The current market action is described as lethargic, with the VIX beginning to rise, signaling increased risk aversion which typically leads to falling equities. The speaker emphasizes the importance of tracking the VIX for risk sentiment and notes the market is trading around the volume point of control on shorter timeframes.

21:37

Market structure and trend signals overview

21:37

The segment discusses strong price action areas with clear technical levels such as ceilings, floors, and price-based support and resistance. The accumulation and distribution indicators highlight multiple tests of resistance levels, indicating their strength. The speaker emphasizes waiting for a breakaway move, referencing recent significant buying activity in the oil market that has driven a rally. This volume-driven momentum suggests a potential price target around 40 to 50, aligning with key volume points of control.

23:02

Currency matrix and dollar strength analysis

23:02

The speaker reviews the majors matrix on a five-minute chart, showing dollar selling across various currency pairs. Cable, dollar CAD, Aussie dollar, euro dollar, Swiss franc, and New Zealand dollar are all rising, indicating a broad trend of dollar weakness. This visual snapshot helps identify whether the market is experiencing dollar buying or selling.

23:40

The focus shifts to the currency matrix, particularly the yen pairs, which serve as a good indicator of market risk sentiment. When risk appetite is strong, yen pairs rise due to yen selling. Earlier in the session, yen pairs were sharply higher, reflecting strong risk-on sentiment.

24:15

The yen pairs have started to decline from their earlier highs, indicating a weakening risk-on sentiment. This decline is visible across multiple timeframes (3, 5, 10, and 15 minutes), showing that yen selling and the associated risk appetite are diminishing in the market.

24:42

Market interrelations and forex as center

24:42

The forex market is central to the global financial system, connecting all four major capital markets: bonds, commodities, equities, and forex itself. It acts as the gateway for asset transfers, as converting assets into cash involves currency exchange, making forex the linchpin of financial transactions. This central role is often misunderstood but is crucial for understanding market interrelations.

25:50

An analysis of currency futures reveals clear trends in US dollar strength and weakness across various currencies, such as the Australian dollar, British pound, Canadian dollar, euro, and yen. The futures market quotes all currencies against the US dollar, providing a straightforward view of currency strength. Currently, the Canadian dollar is weaker and oscillating, influenced by both its own decline and the dollar’s movement, causing some market congestion.

26:52

Strong currency trends arise when one currency strengthens significantly while its counter currency weakens, as shown by the currency strength indicator. Despite recent pauses and slight pullbacks, these trends generally continue, reflecting ongoing shifts in currency strength and market dynamics.

27:31

VIX movement and market sentiment update

27:31

The speaker discusses the recent movements of the VIX index, noting a run-up and a small wick forming on the daily chart, which explains current trends in market indices. They mention the importance of monitoring betting sites for odds, particularly referencing the UK election in December and how betting markets like Sporting Index reflected developments shortly before polls closed. The session is then paused for questions, though none arise.

28:45

Using betting sites for event prediction

28:45

The speaker discusses how, at 8 PM, betting odds shifted dramatically toward a larger majority in a U.S. election, a change detected two hours in advance through betting sites, though the source of this information is unclear. The final majority was much larger than predicted by forecasting and betting companies. The importance of monitoring betting odds as indicators in major events is emphasized. The speaker also explains the differences between American and UK betting odds, noting that despite different formats, they convey similar information about favorites and margins. The data includes extensive details, such as state-level information, providing a comprehensive overview.

30:25

Quantum Trading indicators and platform updates

30:25

The speaker explains that all the trading indicators are available on quantumtrading.com and platforms like MT4, NinjaTrader 7 & 8, with TradeStation support coming soon. Both TradeStation versions 9.5 (Interactive Brokers and TradeStation) and 10 (TradeStation Security) will launch with two sets of indicators, allowing users with IB accounts to use TradeStation as a data feed. Additionally, they plan to port all indicators to TradingView, which was previously not possible due to Pine Script limitations. Once added, TradingView will include the currency matrix, currency array, currency heat map, VPOC, and more. The price for the package on TradingView will then match that of MT4/5, and existing full-package customers will receive these upgrades for free.

31:50

The speaker directs viewers to anacooling.com for books available in Kindle and paperback formats, and to quantumtradingeducation.com for a comprehensive forex trading education program. This program includes over 450 modules and 250 hours of video content covering everything from trading psychology and fundamentals to technical and mechanical aspects of trading.

32:22

Forex trading education program and closing remarks

32:22

The speaker highlights the extensive resources available, including 250 hours of video examples and webinars, supported by an active VPA chat room and expert assistance. They express pride in student success and encourage engagement with the program. The session concludes with well wishes for the trading day and mentions upcoming sessions, including one timed for the London market and the excitement around the US presidential election.

By Anna Coulling – creator of volume price analysis