You don’t need a futures account to start trading indices – try the US30 on MT5

You don’t need a futures account to start trading indices – try the US30 on MT5

If you are keen to get started trading indices but don’t want to open a futures account, the MT5 platform is a great place to start. And of course, as a forex trader following equity markets as part of the relational analysis is key to success trading currencies.

00:01

Introduction and session overview

00:01

The speaker welcomes everyone and thanks them for their patience while waiting for the recording to start. They explain that the session will be recorded and later divided into smaller segments based on different topics. These recordings will be available on their YouTube channels, Anna Cooling and Quantum Trading. The speaker expresses gratitude for the audience’s presence and prepares to begin.

00:32

Disclaimer and day trading markets

00:32

The session begins with a disclaimer emphasizing the risks involved in trading and advising participants not to use money they cannot afford to lose. The focus of the session is on day trading, primarily involving U.S. indices, but also covering commodities, stocks, and Forex under the broader category of day trading.

01:00

Volume price analysis approach

01:00

The speaker explains their trading approach called volume price analysis, which examines how price action and volume interact in the market. This method is versatile and can be applied across various markets and time frames, whether trading stocks, forex, or other instruments. While each market has unique characteristics like specific news events and correlations, the core chart analysis remains consistent regardless of the market symbol. The speaker also references resources, including books available on Amazon and Kindle, that provide detailed guidance and numerous examples of this approach.

02:45

Support and resistance concepts

02:45

The segment explains the relationship between price action and volume from two perspectives: active volume, which indicates participation in the instrument during a specific timeframe, and volume price analysis (VPA). It highlights the importance of support and resistance in technical analysis, emphasizing both price-based and volume-based support and resistance. Special indicators developed for these concepts are mentioned, with an invitation for users, especially those familiar with Quantum or VPA, to ask questions about the indicators.

03:48

Trading platforms and indicators

03:48

The speaker discusses the trading platforms currently in use, mentioning MT5 and NinjaTrader, with a possible use of TradingView. They explain that they will focus on MT5 rather than Forex based on a user’s email request.

04:17

US 30 synthetic contract explained

04:17

The speaker introduces the US 30 cash market, a synthetic version of the Dow Jones futures, available on MT5 and MT4 platforms. Brokers created this synthetic instrument to allow traders who cannot access futures to participate in this highly liquid market. Initially, forex trading was more limited, focusing mainly on currency pairs, but now many instruments including commodities like silver and gold, and various stocks are available. The speaker highlights the wide range of currencies and instruments accessible on trading platforms.

06:00

The discussion shifts to comparing trading in forex pairs with trading indices like the US 30. Forex trading requires understanding the relative movements of two currencies in a pair and what drives them, including specific fundamental news cycles and market sentiment linked to individual currencies. In contrast, indices like the US 30 focus on a single instrument, making them somewhat more straightforward to analyze, though fundamental news and global market sentiment still influence them.

07:31

The speaker explains how the US 30 synthetic contract is priced, noting it tracks the cash market closely rather than futures, with slight differences between the two. Investing.com is recommended as a resource for checking current market values and sentiment. The Dow has recently risen by 400 points, but the key sentiment indicator is the S&P 500, which reflects overall risk appetite in the market. The VIX volatility index is also discussed, noting its spike during crises like 2008 and recent high levels. The US 30 trades 24 hours globally, providing continuous market access.

09:50

24-hour market and volume patterns

09:50

The speaker explains that on the 15-minute chart for Globex, a 24-hour market, there is a noticeable surge in volume as the physical US market opens, causing participation levels to rise significantly. This volume increase does not invalidate volume-price analysis because volume must be interpreted relative to the specific session and its participation. Awareness of this context allows traders to read volume data appropriately. The speaker then introduces their approach on the MT5 platform, beginning with a daily chart of the Dow to understand the prevailing trading conditions.

11:02

Daily chart and trading conditions

11:02

The speaker explains that on faster time frames, the Dow is moving higher but remains above the volume point of control, indicating a positive position for longs. However, it is currently in a consolidation phase, moving sideways within range boundaries with significant volume. This suggests that on slower time frames, the instrument is range-bound, implying limited trending opportunities and potentially choppy, two-way price action. Traders should be aware that trends may be short-lived and riskier in these conditions. Support and resistance levels become crucial in navigating such market environments.

12:46

The speaker highlights the increasing importance of support and resistance levels across multiple time frames, especially slower ones. They describe their chart setup in MT5, which includes a daily chart for overall trading conditions, alongside 3-minute and 15-minute charts, as well as a toggleable chart, to better analyze and trade within the current market context.

13:19

Camarillo protocol indicators

13:19

The speaker discusses an indicator developed as part of their volume profile (VP) and quantum tools, based on Camarilla protocols, which provides six key price levels with varying significance. This indicator is displayed clearly on a single chart. Additionally, they mention integrating a volume profile and a currency strength indicator into their Forex platform, allowing immediate insight into currency movements such as the Australian dollar’s strength, reflecting market risk appetite without needing to view a separate chart.

14:26

Currency strength and market sentiment

14:26

The speaker discusses currency market movements, focusing on the yen rising as a sign of risk-off sentiment and market nervousness. They highlight a divergence where the Australian dollar is rising sharply while the yen falls steeply. The possibility of further congestion in price action is suggested, supported by observations from a three-minute chart showing important resistance and support levels that indicate potential price targets.

15:30

The significance of price levels is explained, with a focus on how breaking these levels signals genuine market moves. The speaker notes that on shorter time frames, levels refresh every 24 hours, while on the hourly chart, levels remain until the end of the week. This weekly context helps explain why the price has stalled at a particular resistance level (R3), providing insight into the current price action dynamics.

16:40

The speaker reviews recent price attempts to break through resistance levels over several days, noting repeated failures and drops back. The current movement is described as a battle to push higher after bouncing off a support level (S2). They caution that in such choppy trading conditions, especially when the daily chart is narrow, price action can be difficult to predict and manage.

17:15

Renko charts for smoothing price action

17:15

The segment explains the use of a non-time-based chart called Renko, which is particularly useful during congested market phases. Each Renko brick represents a fixed price movement—in this case, seven points—regardless of time elapsed. Applying the Renko chart to a 1-minute timeframe smooths out the choppy, spiky price action seen in traditional time-based charts, making it easier to identify support and resistance levels. The example highlights how this method clarifies market stalls around significant price points, aiding in more accurate trend reading through indicators like trend dots and a monitor on the MT5 platform.

19:03

Trend signals and trade management

19:03

The speaker explains a trading system that signals potential engine moves using color changes, but emphasizes that it is not fully automated; traders retain control over their decisions. The discussion highlights the difficulty in dealing with choppy market conditions and the gradual emergence of a trend, indicated by shifting colors from bright blue to intermediate and potentially bright red for short positions. The importance of watching key levels, such as the R4 at 23,900, is noted to determine possible reversals or trend strength. The platform used is MetaQuotes, customized for trading a synthetic futures contract, offering access to markets that many traders might not typically engage with.

20:49

VPA principles across markets and futures

20:49

The speaker discusses trading options including NQ, SP, gold, and oil, emphasizing that the principles of volume price analysis (VPA) and indicators apply across all. David prefers trading the YM futures contract, which is highlighted as his favored choice. Viewers are encouraged to ask questions via the chat box.

By Anna Coulling – creator of volume price analysis