Volatility and the crossover session

Volatility and the crossover session

Volatility and the crossover session The crossover from one session to another is a dangerous time for forex traders and an extremely profitable one for the market makers. Why? Watch the video to discover why and what you are likely to see at every such period of the trading day, particularly in the Far East Asis to London crossover and later when the US markets open. Note the importance of having the volatility indicator from Quantum Trading which triggers in real-time and gives an instant warning of volatility in the market. The indicator works on average true range and its power lies in forecasting what is likely to happen next which is either congestion, or a full reversal in trend. https://youtu.be/8CI9gn59Tec 00:15 Introduction and currency array overview 00:15 The speaker greets the audience warmly and mentions some technical difficulties with audio. They then begin discussing their experience monitoring the currency pair pound-yen, noting that it has moved over a hundred pips during the past hour. 00:47 Using the currency...
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London forex session using volume price analysis

London forex session using volume price analysis

London forex session using volume price analysis In this morning's forex trading session we saw the first signs of a change in sentiment following the panic selling of the last few weeks, with risk currencies and safe haven flows sending strong signals of this change. Volume price analysis confirms using Wyckoff's three laws of supply and demand, cause and effect and finally and most importantly effort vs result. https://youtu.be/HE1j44W55LY 00:00 Introduction to Forex webinar series 00:00 The webinar begins with a welcome to the London session of the Forex series. This is the first in a short series of webinars scheduled over the next few weeks, with flexibility for attendees to join any or all sessions. The series is timed around Easter and was organized from an ad-hoc approach. 00:31 Market crashes and trading opportunities 00:31 The speaker discusses the current unprecedented market conditions, including recent market crashes. Many people are now at home and considering trading either to supplement their income or for long-term investment. There is also interest...
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Volume price analysis and congestion phases

Volume price analysis and congestion phases

Volume price analysis and congestion phases Volume Price Analysis & Congestion Phases A nice congestion phase building on the 5m chart for GBP/JPY, introducing several elements of volume price analysis. First, we have support and resistance. Here, we see a strong region of resistance forming, indicated by the red dashed line. This is on the accumulation and distribution indicator which displays graphically the strength of such regions. In other words, the thicker the line, the stronger the region, so a strong ceiling of resistance is building at 129.75. In addition, we are also trading at the volume point of control at 129.52. This is the fulcrum of the market at present, with no bullish or bearish bias. In other words, the market is in price agreement, where we have the heaviest concentration of volume. The key now is to wait for the breakaway from this region which will come - it's a question of being patient and waiting. And on the move away...
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Does volume price analysis work? Most definitely

Does volume price analysis work? Most definitely

In these unprecedented and dramatic times for markets, traders, and investors, volume-price analysis has never been more appropriate, and we had a great example on the 3-minute chart for the WTI contract for April. The chart is vpa 101, where, following a move lower from a strong resistance line, we have a candle with a deep upper wick and very high volume, not only confirming the move lower but also providing a potential point of entry. The minor correction is higher on falling volume, thereby validating our initial analysis. What Volume Price Analysis (VPA) Will Do for You Volume Price Analysis (VPA) is a straightforward yet powerful trading methodology that focuses on the relationship between price movement and volume to reveal the true intent behind market action. Developed by Anna Coulling and rooted in the classic principles of Wyckoff, tape reading, and the work of pioneers like Livermore and Ney, VPA strips away lagging indicators and noise to show you exactly what professional...
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Great move on gbp/cad using multiple time frames

Great move on gbp/cad using multiple time frames

Great Move on GBP/CAD Using Multiple Time Frames Using multiple time frames to identify and capture trading opportunities is made a lot easier with the best forex trading indicators, and we had a great example earlier today on the GBP/CAD. Based on a combination of the hourly chart for the Matrix and 15 min chart of the Array, resulted in a 200+ move in these highly charged markets. The indicators were supported with a 3-pip Renko and a 3-minute time chart. The two charts show above explain the result and all supported by our volume price analysis methodology. GBP and CAD Fundamentals: Understanding the Pair and Multi-Timeframe Trading The British Pound (GBP) is the currency of the United Kingdom, one of the world's largest and most influential economies. The UK is a major financial services hub (London is the world's leading international banking and forex centre), with significant contributions from professional services, manufacturing, and North Sea oil/gas. GBP is a high-beta, risk-sensitive currency:...
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Canadian dollar crushed as oil prices tumble

Canadian dollar crushed as oil prices tumble

Canadian dollar crushed as oil prices tumble One of the relationships I cover in my free forex webclass is that between oil and the Canadian dollar, and it has never been more important following today's dramatic price action for both crude oil itself and broad market sentiment. So, with equity markets and oil in free fall, the CAD/JPY pair has delivered some wonderful trading opportunities, along with several others in the Canadian dollar complex. The combination of risk-off and oil has driven the pair lower still, following the gapped-down open under heavy selling as seen on the daily chart. Over the next few days it will be a question of watching the related markets of oil and equities for any recovery in the Canadian dollar. The Canada-Oil Relationship: A Deep Dive into Economic Ties and Currency Market Impacts Canada, often dubbed the "Great White North," is not just known for its vast landscapes and maple syrup—it's a powerhouse in global energy markets, particularly...
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Muted reaction to NFP for equities

Muted reaction to NFP for equities

Muted reaction to NFP for equities Fundamental news is often cyclical, and the importance of one type will vary according to where we are in the economic cycle. In addition, such items may be overshadowed by more prescient news, and this is certainly the case at present with the coronavirus dominating world headlines and driving fear in the markets. So it was no surprise to see the monthly NFP release have little impact on US indices, which paused momentarily before continuing their journey South as we can see across the three sisters here of the YM emini, the NQ emini and the ES emini. Note the weakness in the reaction at the top of the 5 m charts. Non-Farm Payroll (NFP): A Key Economic Indicator for Traders Non-Farm Payroll (NFP) is one of the most anticipated economic releases in the trading world. Issued monthly by the U.S. Bureau of Labor Statistics, NFP reports the change in U.S. employment excluding farm workers, private household...
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Weak AUD/JPY signals return to risk off

Weak AUD/JPY signals return to risk off

Weak AUD/JPY signals return to risk off It's been a day of weakness for the Aussie yen as risk-on sentiment evaporated once more, with markets remaining fragile and nervous as each day reveals fresh news on the current virus sweeping the globe. As a barometer of risk the AUD/JPY is always one currency pair that reveals this sentiment clearly, with the Aussie dollar considered a risk currency and the Japanese yen a safe haven. This weakness was signaled earlier in the week with the failed effort to rise on high volume and now followed by a bearish engulfing candle. AUD/JPY: The Ultimate Risk Sentiment Barometer in Forex Markets The AUD/JPY currency pair is one of the most widely watched "risk-on/risk-off" indicators in the forex world. Often called the "risk barometer" or "carry trade proxy," AUD/JPY moves in near-perfect alignment with global risk appetite. When investors feel optimistic and are willing to take on risk, AUD/JPY rises sharply. When fear returns and risk aversion...
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Great VPA lessons on the CAD/JPY

Great VPA lessons on the CAD/JPY

Great Volume Price Analysis Lessons On The CAD/JPY Some classic price action on the CAD/JPY daily chart, and in particular, several volume price analysis lessons to take away. First, note the volume anomaly on the wide spread up candle. Volume is average, so the market makers are not participating, as the trap is set. Clearly, volume and price are not in agreement, and this is a sure signal of weakness ahead. The price waterfall is developing as expected, and note the rising volume in a falling market, confirming the strength of the trend. Finally, in the last few days, we have had a two-bar reversal on good volume, with the currency pair looking weak. And remember, the Canadian dollar is closely associated with oil and with the recent fall in oil prices, this has also been reflected in the currency and one of the topics I cover in my free forex webclass. Volume Price Analysis (VPA) 101: A Beginner's Introduction Volume Price Analysis (VPA)...
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Crossover session traps

Crossover session traps

Crossover session traps The crossover sessions in forex occur when trading in one timezone closes and another opens and can be a very dangerous time for traders. Why? Because this is where insider traps are set. The London open always is a fertile ground and there was a great example on the usd/jpy. Heavy buying in the pair on the previous day resulted in a nice move higher in Asia with the pair moving into consolidation ahead of the London open. Prior to the open the pair started to move higher on reasonable volume but reversed lower at the open on high volume until the hammer candle, again on high volume pushed the pair back towards the consolidation (the yellow line on the chart). Session Crossover Traps: How Market Makers Catch Unwary Traders (and How to Avoid Them) The session crossover — the moment one major trading session hands over to the next — is one of the most dangerous times of the day for...
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