The building blocks of volume price analysis

The building blocks of volume price analysis

Learn the building blocks of volume price analysis and take your trading and investing to a new level. Build your trading approach on universal and solid foundations.

00:00

Webinar introduction and disclaimer

00:00

The webinar for the London session is about to start, with a reminder of the disclaimer regarding the risks of trading. Attendees are cautioned not to trade with money they cannot afford to lose. The session is beginning a few minutes later than scheduled.

00:29

Overview of forex volume price analysis

00:29

The speaker introduces the session focused on the forex market, explaining that they will use a volume price analysis methodology developed over nearly 20 years. They plan to demonstrate this approach using live charts and recent price action examples from the previous day continuing into today.

01:00

Combining technicals, fundamentals, and sentiment

01:00

The segment introduces the approach to analyzing the forex market, emphasizing that it involves not only technical analysis but also fundamental factors and related markets. The example of the New Zealand yen and yen currency pairs is used to illustrate how market sentiment and movements in one area can influence the forex market overall. The methodology will be further explained throughout the presentation.

01:36

Forex tools and currency flow analysis

01:36

The speaker discusses a comprehensive resource called the Complete Forex Library available on Amazon, which is a digital collection covering key forex concepts and approaches. Additionally, they mention the creation of specific tools designed to analyze the forex market, particularly to gauge market sentiment through the movement of the yen, focusing on which currency pairs the yen is moving in to understand risk-on and risk-off sentiments.

02:09

Risk-on sentiment and equity market impact

02:09

The segment discusses the current market sentiment, highlighting a strong appetite for risk as equities and major indices like the S&P, Nasdaq, and Dow futures continue to rise. It emphasizes that the market is increasingly willing to take on more risk, reflecting a positive outlook among investors.

02:46

Yen currency pair movements and sessions

02:46

The discussion focuses on the behavior of the yen in forex trading, noting that the specific yen currency pair in focus can change depending on the trading session. Recently, the yen was generally sold while major currencies moved higher. The pound-yen pair eased off around midday before the U.S. session, after which attention shifted to the New Zealand-yen pair. This highlights the dynamic nature of the forex market and the importance of monitoring different currency pairs.

03:25

Using indicators to track strongest currency flows

03:25

The speaker explains a system developed to simplify forex market analysis by breaking down market movements and flows into individual currencies and pairs. This approach allows traders to quickly identify where flows are strongest without examining numerous charts. The system highlights key sessions and market behaviors, particularly useful for new traders observing currency pair trends.

04:01

Introduction to reversal candle patterns

04:01

The video discusses a shift in currency strength from the morning to the afternoon, with the New Zealand yen becoming stronger later in the day. It then introduces the topic of reversals in trading, focusing on volume price analysis and the use of candlestick patterns. The segment begins examining specific reversal candles, such as upthrusts and hammers, also known as pin bars, shooting stars, and hammers, which are key indicators for potential price reversals in trading.

05:05

Validating reversals with volume and timeframes

05:05

The segment explains the importance of candlestick patterns in trading, particularly how reversal candles like hammers or nut frosts must appear at the top or bottom of a price move to be significant. It emphasizes validating these patterns with volume and checking multiple timeframes, such as comparing five-minute and ten-minute charts, to better identify potential reversal signals. Additionally, the candle’s position relative to critical or significant chart levels increases the likelihood of a reversal or pullback occurring.

06:17

Reversals at critical support and resistance levels

06:17

The speaker discusses that the correction will be significantly higher, combining two concepts from VPA: candle patterns for reversals and support and resistance levels. Before analyzing the chart further, the speaker hands over to David, then plans to review the New Zealand yen, which is continuing to rise.

By Anna Coulling – creator of volume price analysis