One of the important phases of price action in any market is volatility. Why? Because two forces are at work. The first is the emotional fear of missing out, in other words FOMO. The second is the fact this is the time the market makers and insiders are at their most active. They understand FOMO and use it repeatedly to trap traders into weak positions, either following such a move with congestion, increasing the fear further, or simply reversing the price action and taking out stops. Either way it's win win for the insiders and a simple and powerful way for them to make money. Learn how and why in this video and discover how to avoid being trapped.
https://youtu.be/cnEajurtSho...
https://www.youtube.com/watch?v=Gv7jIug4Vds
In this video, David looks explains how stepping down to the faster time frames in congested markets can help to highlight potential trades, particularly when volatility strikes and triggers the Quantum volatility indicator. This is an indicator which triggers in real-time....
https://youtu.be/9E9NzpFj54c
How to Find the Best Times to Trade Forex Based on Volatility
Forex markets aren't equally volatile 24/5. Volatility spikes during high-liquidity overlaps. This creates bigger moves and better opportunities. Low-volatility periods often range—frustrating for trend traders. Finding the "best" times means matching your style to session volatility.
Throughout the trading session, volatility ebbs and flows and knowing when to trade and when to wait is key. In this session from the US futures trading session, we take a closer look at this aspect of trading through the prism of volatility.
Major Forex Sessions and Volatility Levels
The forex day divides into three main sessions (times in GMT, adjust for daylight saving):
Asian Session (Tokyo: ~00:00-09:00 GMT)
Low to moderate volatility.
Focus: JPY pairs (USD/JPY, AUD/JPY). Commodity currencies (AUD, NZD) move on China/Australia data.
Best for: Ranges or carry trades. Avoid if you need big swings.
London Session (08:00-17:00 GMT)
High volatility—liquidity surges at open.
EUR, GBP pairs dominate. Overlap with Europe drives early...
When a breakout from congestion occurs the first thing we study is volume as this confirms whether the breakout is genuine or false. In this video we consider the longer term outlook for gold as well as an intraday example on the gold futures contract.
https://youtu.be/qjWykb-P0IU...
https://youtu.be/xQAKuCc_pYo
It’s All Eyes on the Euro as Markets Await the PMI Data
All eyes are on the euro as markets await PMI data. Purchasing Managers' Index figures drive sentiment. Strong readings boost EUR. Weak ones pressure it lower. Traders prepare for volatility in EUR pairs. Whilst markets continue to be dominated by the pandemic, fundamental data continues with the PMI this morning for both France and Germany of which the latter is the more significant.
Why PMI Data Matters for Euro
PMI reflects the health of manufacturing and services. Above 50 signals expansion. Below indicates contraction. Eurozone data influences ECB policy expectations. Volume price analysis (VPA) spots reactions—high volume on moves confirms conviction.
VPA Insights During the Wait
Pre-release consolidation builds tension. Low volume ranges show caution. Post-data spikes reveal truth. Quantum currency strength indicator ranks EUR early. Matrix shows relational shifts. Trend Monitor aligns direction.
Trading Implications
PMI beats favor EUR longs. Misses support shorts. Wait for volume confirmation. Avoid chasing spikes. Anna Coulling's VPA approach...
https://youtu.be/4DOS5-a7dpk
Watch Out for More Traps on Volatility and the News!
Volatility and news go hand in hand in forex trading. Releases create sharp moves. But they also set traps. False breakouts catch impatient traders. This is common in GBP/USD during European data. Here it's the GBP/USD as European data is released with the PMI data for France and Germany with the volatility indicator for MT5 and NinjaTrader signalling this clearly in all timeframes.
European PMI Data and GBP/USD Volatility
European PMI data for France and Germany drives early action. Strong figures boost risk sentiment. Weak ones favor caution. GBP/USD reacts fast. Volatility spikes at release. But not all moves last.
How Traps Form on News
News spikes often lack volume support. Price breaks levels. Traders chase. But low volume reveals weakness. Reversal follows. Volume price analysis (VPA) spots this—high price on low volume = trap.
Quantum Volatility Indicator Signals
The Quantum volatility indicator on MT5 and NinjaTrader signals clearly. It highlights expansion phases across timeframes. Spikes warn...
https://www.youtube.com/watch?v=9cXJ892ZHv4
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Richard Wyckoff’s Three Laws Explained
Richard Wyckoff was a pioneering trader in the early 20th century. He studied markets through "tape reading"—real-time price and volume data. From this, he distilled three fundamental laws. These explain how markets move and why. They remain the foundation of modern Volume Price Analysis (VPA). Understanding them helps spot professional intent and high-probability trades.
1. The Law of Supply and Demand
Price moves based on the balance between buyers (demand) and sellers (supply).
Demand exceeds supply → price rises.
Supply exceeds demand → price falls.
Balance → price ranges sideways.
Volume confirms this. High volume on up moves shows strong demand. Low volume rallies signal weak demand—potential reversal.
2. The Law...
Trading reversals require your stop loss to be set wider to allow for the congestion phase to develop before the trend begins. So this is not for everyone, but if you have the patience, the pay off is greater as you are getting into the trend before it begins so the payout is greater. It's all about risk and returns.
https://youtu.be/AQqakclQlq4...
https://www.youtube.com/watch?v=pwsiXkPV0bM
A video to explain how e mini traders can use the forex market to discover market sentiment, and in particular the aud/jpy.
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