Volume price analysis for scalping futures

Volume price analysis for scalping futures

In this part of the US futures trading session, we move to the fast timeframes of 15-second charts and above as the markets continue to congest and moves sideways following the strong moves of the previous day. This is only to be expected following the appearance of the volatility indicator on the daily charts for many commodities and yen currencies, sending a clear message of congestion ahead. Some excellent short term opportunities arrived and clearly signaled with volume price analysis which confirms and validates the price action, supported of course by the Quantum Trading indicators.

00:10

Introduction to Forex Funded Accounts

00:10

The speaker welcomes the audience and introduces the forex funded accounts program, which starts with evaluation accounts at $5,000, $10,000, or $15,000. Participants undergo an evaluation process where they are assessed on their trading approach within strict money management and risk rules. Once they pass this initial stage and demonstrate consistent profitability, they have 12 months to meet a profit target. Successful traders receive a portion of the profits as a bonus and can progress to higher levels in the program with increased profit payments.

01:13

Scaling Up Funded Account Levels

01:13

The initial phase of the evaluation uses account sizes of 5, 10, and 15 thousand dollars. These amounts are then multiplied by four, progressing the next level from 15,000 to 60,000 dollars. From there, the amounts double sequentially, moving from 60,000 to 120,000, then to 140,000, and continuing up to 2 million dollars. This rapid scaling allows quick advancement through levels, but risk and money management rules consistently apply throughout the program. Additional details on these rules will be covered later.

01:42

Market Analysis Using Volume Price Control

01:42

The speaker reviews the trading workspace showing three indices (YM, Enqueue, and ES) on different timeframes, highlighting volume point of control and volatility triggers. They discuss a recent choppy market with a notable divergence on the Enqueue index, describing a sharp down day following an initial surge. This pattern is likened to a ‘souffle’ collapse, a common manipulation tactic seen during major news events, where market makers push prices rapidly in one direction before quickly reversing to profit.

02:42

The speaker analyzes the previous day’s price action and volume, pointing out a large upper wick with heavy volume, indicating weak market strength. They observe congestion and volatility triggers on the daily chart of the YM index and highlight abnormal volume patterns that suggest recent price moves lack genuine momentum. Comparing current volume levels to past extreme volatility days, the speaker concludes these movements were driven by rumors and market manipulation designed to trap traders in weak positions, presenting profitable trading opportunities for those aware.

04:17

Trading Strategies and Market Conditions

04:17

The speaker discusses profiting significantly from long positions in the yen market, explaining that these are longer-term trades rather than intraday. They emphasize that trading approaches vary—scalping or long-term—but the core principles remain the same. The current market shows a downward retracement back to a volume point of control with considerable volume below, but momentum is lacking as volume is decreasing instead of rising.

05:14

The market is experiencing low participation and little momentum in the downtrend, with volume falling away. The speaker looks at the VIX index across multiple time frames and notes it is exhibiting choppy, sideways price action similar to many other markets. They also mention monitoring bond market news as part of the analysis. Attention is then turned to the YM market on a 15-second chart, highlighting the narrow price movement phase and the necessity to use faster time frames for scalping during such periods.

06:21

In narrow market phases, traders need to move to very short time frames, such as under a minute, to effectively scalp. Volume price analysis remains consistent across time frames. The speaker points out key resistance levels identified by the accumulation/distribution indicator, which adjusts dynamically based on previous price tests, resembling muscle growth from spinach in Popeye. This indicator helps identify strong resistance areas that move over time.

07:24

Volume analysis shows a wedge formation and a volume point of control that influences price movement. Areas with low volume tend to be passed through quickly by price, as there is little volume-based resistance. The speaker contrasts volume-based support/resistance with price-based levels, explaining that combining these indicators helps anticipate whether the trend will accelerate or pause. The volume point of control acts as a significant reference where price may congest or find support.

08:28

Volume Price Analysis and Trend Interpretation

08:28

The speaker explains the concept of the volume point of control (VPOC) as a dynamic market fulcrum where the greatest volume occurs, noting it shifts as volume builds and rebuilds. They highlight a price waterfall example showing rising volume in a falling market, which reflects the effort required for price movements. This rising volume pattern is typical for sustained trends, whether upward or downward. Understanding this helps distinguish between primary and secondary trends, enabling traders to interpret pullbacks as either full reversals or temporary corrections.

09:54

The trend monitor indicator is introduced as a tool designed to keep traders confidently in a trend by smoothing out congestion areas. The volatility trigger indicator signals when price action moves outside the average true range, often indicating involvement by market makers and predicting either reversals or periods of congestion. Traders are advised to take profits or reduce positions upon such triggers to avoid losses from reversals or sideway markets. The segment also describes a typical trap move where a quick snap upwards entices traders to jump in out of fear of missing out, only for the market to congest or reverse.

11:22

The discussion continues with the market moving lower again, showing a transition in trend colors and accumulating significant points of profit for those who entered near the top. The analysis shifts to a multi-timeframe perspective, providing a broader view of price action away from the immediate close price. The trend monitor remains effective in helping hold positions during this move, with rising volume indicating momentum as the price moves into a low volume area, suggesting a quick passage through that zone.

12:22

A multi-timeframe analysis reveals consistent market weakness and indecision, with the trend monitor confirming a downward trend accompanied by low volume at certain points. The VIX index is noted to be spiking, correlating with increased volatility and the move seen in indices and risk currencies. Shorter timeframes show choppy and weak price action, yet profitable opportunities exist within these fast moves. The speaker emphasizes ongoing downward momentum in the Nasdaq and other indices, pointing out a likely return to the volume point of control over the coming days, suggesting further potential price declines.

14:04

Indices and Volatility Insights

14:04

The speaker discusses the market volume and price movements, noting decent volume under 230 and that all three indices are moving in the same direction, which is reassuring for trading. They highlight that volume is low on Globex (electronic trading) but spikes at 2:30 PM when cash markets open, leading to expected volatility. A downward trend is beginning to develop, but its duration is uncertain. The VIX volatility index is rising, currently at 25.57, indicating increased market uncertainty.

15:32

The speaker monitors the VIX, wanting it to climb above 26 for the downward trend to sustain. They then shift focus to gold, which experienced a significant decline the previous day, characterized by a large bearish candle. Despite this, a volatility trigger is in place, leading to the expectation that gold’s sell-off will not continue further today.

15:40

Gold, Silver, and Oil Market Overview

15:40

The market is experiencing congestion and potential recovery after an overhyped sell-off, influenced partly by the US dollar. Gold and silver are showing expected signs of recovery, trading around key volume points. Oil remains in a prolonged congestion range capped near $42 per barrel, with supply and demand dynamics—especially OPEC’s actions—likely dictating future price movements. Technical indicators and volume price analysis (VPA) continue to provide consistent insights regardless of the asset.

17:34

Volume price analysis reveals a price waterfall breaking through key support levels with varying volume intensity. Efforts to rally are weakening due to declining volume, indicating a probable downward trend continuation. VPA helps distinguish between primary trend shifts and shorter-term sideways movements, assisting traders in identifying when markets are transitioning from strong trends to consolidations.

18:41

Traders’ natural tendency to exit positions prematurely during market pauses often leads to many small losses and profits, which is detrimental over time. Successful trading relies on holding positions during strong trends to maximize gains, despite inevitable pauses and pullbacks. Understanding this psychology is crucial to avoid getting shaken out early and to capitalize on larger winning trades.

19:40

Market makers influence price action, triggering volatility traps that often signal upcoming reversals. Traders are advised to secure profits and exit when a reversal is anticipated, especially during congestion phases. If the market breaks critical support levels, re-entry opportunities arise with minimal costs, emphasizing the importance of managing exposure and timing entries based on volume and price action signals.

20:35

Shorter timeframe charts confirm volume patterns indicating a possible reversal as price approaches strong support zones around 40.70. Price clusters and accumulation-distribution indicators highlight robust support platforms, suggesting that even if prices decline to these levels, a pause or reversal is likely. Monitoring these key price actions helps traders anticipate market behavior more accurately.

21:55

Indices are showing signs of weakness; buying attempts are limited and capped by strong resistance. The VIX remains elevated due to ongoing uncertainty surrounding the presidential election timing rather than outcome, driving volatility purchases. This persistent uncertainty keeps volatility high, influencing market dynamics and trader behavior.

23:35

Volatility remains elevated as the market anticipates election developments. Traders should evaluate potential trade setups by carefully assessing chart resistance and volume to understand where price might struggle. The concept of risk versus reward should be viewed pragmatically, focusing on clear chart evidence rather than arbitrary risk-reward ratios, which often mislead traders.

25:00

Currency futures show mixed movements with no strong clear trends in the US dollar pairs, as currencies are fluctuating and twisting against each other. Euro buying against New Zealand and shifts in Canadian dollar and British pound suggest emerging opportunities. However, overall dollar strength across multiple pairs indicates weak trend momentum, limiting trade options. Effective trading relies on spotting divergences where buying and selling forces differ significantly.

27:30

A developing trend between the British pound and New Zealand dollar is identified, driven by strong pound selling and New Zealand dollar buying. The yen currency complex experienced significant volatility recently but is currently in congestion, signaling limited price action in the short term. Traders are advised to be patient and wait for longer-term opportunities as the market stabilizes across these currency pairs.

28:43

Forex Program Details and Trading Rules

28:43

The forex program starts with an evaluation phase where traders begin with capital levels of five, ten, or fifteen thousand dollars, using the firm’s money rather than their own, making it a no-risk proposition. Traders must meet a simple profit target of six percent within 12 months, such as earning $300 on a $5,000 account, with 30% of profits paid out after this phase. The program allows any trading style, including hedging and scalping, and offers flexibility in timing. Upon successful completion, traders move to higher capital levels, multiplying their trading capital progressively.

30:18

As traders advance, they can manage larger funded accounts, reaching up to $60,000, with monthly profit withdrawals at 40%. The program enforces risk and money management rules throughout to ensure disciplined trading and protect capital, creating a mutually beneficial setup. The forex program is exclusively available to students of the Quantum Trading education program, providing a clear progression path from learning to trading large funded accounts comfortably.

31:21

Students can access all analysis, posts, books, and indicators related to the program through various platforms like thecooling.com and quantumtrading.com. Books are available in both Kindle and paperback formats, and participants receive a full set of indicators upon joining. This comprehensive support system enhances the learning and trading experience within the Quantum Trading community.

31:53

Indicators and Platform Updates

31:53

The speaker explains that purchasing the full set of indicators grants free access to all future platform indicators as a thank you to investors. The current supported platforms include MT4/5, NinjaTrader 7/8, and TradingView, with TradeStation expected to launch soon. They highlight the integration with Interactive Brokers through TradeStation versions 9.5 and 10. Upcoming webinars will focus on TradeStation, and once completed, additional indicators will be added to the TradingView package, which now supports advanced features due to Pine Script improvements. The TradingView package will then be fully aligned with MT4/5, priced at $894, making it a good investment opportunity.

33:25

Global Access and Closing Remarks

33:25

The speaker explains that the funded account program accepts customers globally, regardless of their location. Despite challenges in certain regions like America, particularly with forex trading, the program complies with all relevant legislation and offers a valuable opportunity to participate. The speaker thanks the audience for attending and hopes they found the session informative.

34:47

The VIX index is rising, indicating increasing market volatility. The speaker reminds viewers of upcoming sessions: the London forex session next Tuesday morning at 7:45 and the U.S. session next week at 3:00 PM. They encourage everyone to stay safe and well during these challenging times and wish them a good trading week ahead.

35:21

The session concludes with the speaker expressing gratitude to the audience for attending and wishing them well before signing off.

By Anna Coulling – creator of volume price analysis