Following up from the previous video, how volume price analysis supported by the Quantum indicators confirmed the reversal signal on the gold chart.
Reversal Signal on Gold Confirmed by Volume Price Analysis
Gold often delivers dramatic reversals. Safe-haven or commodity flows create extremes. A recent setup showed classic signs. Price pushed to highs on weakening momentum. Volume price analysis (VPA) confirmed the turn. Traders spotted the reversal early.
The Reversal Signal in Action
Gold rallied sharply. Risk-on sentiment faded. Price made new highs. But volume fell—divergence appeared. This warned of exhaustion. Buyers lost conviction. A bearish candle formed on high volume. Selling pressure emerged. Reversal lower followed.
VPA revealed distribution. Low volume at highs = professionals unloading. High volume on down candle = conviction selling.
Quantum Tools Highlight the Shift
Quantum Trend Monitor on NinjaTrader flipped from green to red. Accumulation/Distribution indicator turned negative early. VPOC at highs acted as resistance—rejection on volume confirmed.
Practical Trading Insights
Reversals like this reward patience. Wait for volume confirmation. Short on breakdown with high volume. Pullbacks on low volume offer entries. Avoid low-volume spikes—often traps.
Anna Coulling’s VPA approach with Quantum tools turns gold reversals into disciplined trades. Quantum indicators spot them reliably.
This reversal signal on gold was textbook VPA. Quantum tools made it clear and actionable. Trade extremes with volume conviction for consistent results.
Is There A Link Between Gold & Silver?
Yes, there is a strong historical and market-based link between gold and silver prices—they often move in tandem, though not perfectly. This correlation makes them a popular pair for traders to analyze (via the gold/silver ratio), hedge, or speculate on relative performance.
Why Gold and Silver Are Linked
Both are precious metals with overlapping roles:
- Safe-Haven Demand: In risk-off environments (crises, inflation fears, equity drops), investors buy both for protection. This pushes prices higher together.
- Inflation Hedge: They preserve value when fiat currencies weaken.
- Industrial/Monetary Demand: Gold is mostly investment/jewelry/central banks. Silver has ~50% industrial use (solar panels, electronics, EVs)—adding volatility but tying it to growth cycles.
Correlation is typically positive (0.7-0.9 over long periods), meaning they rise/fall together. But silver is more volatile (beta ~1.5-2x gold)—it amplifies gold’s moves.
The Gold/Silver Ratio
This key metric shows ounces of silver needed to buy 1 ounce of gold:
- Historical average: ~40-60.
- Extremes: <30 (silver expensive, e.g., 2011 hunt brothers era) or >100 (silver cheap, e.g., 2020 COVID lows).
- Current (January 18, 2026): ~92-94 (silver relatively cheap vs gold, which hit record highs on safe-haven flows).
High ratio = buy silver/sell gold (mean reversion bet). Low ratio = opposite.
Trading Implications with VPA
Volume price analysis (VPA) spots conviction in the pair:
- High volume on ratio breaks = strong relative move.
- Divergence (gold new high on low volume, silver lagging) = potential reversal.
Quantum indicators on NinjaTrader track both for relational edge.
The link is real but imperfect—silver’s industrial side adds swings. Traders use the ratio for pairs trades or hedges. VPA confirms real momentum.
The Gold/Oil Ratio: A Key Intermarket Tool for Traders
The gold/oil ratio is a powerful intermarket indicator. Traders divide the price of gold (per ounce) by crude oil (per barrel). This reveals relative strength between safe-haven gold and growth-linked oil. It signals sentiment shifts. Volume price analysis (VPA) confirms reactions—high volume in gold or oil validates ratio moves.
How the Gold/Oil Ratio Works
Calculate simply: Gold price ÷ Oil price. Example: Gold $2,500, Oil $80 = ratio ~31.
Historical average ~15-20. Above 25-30 = gold expensive vs oil (risk-off or inflation fears). Below 10-15 = oil expensive (risk-on, growth optimism).
What the Ratio Reveals
- High Ratio: Gold outperforms. Safe-haven demand rises. Risk-off or inflation hedge. Favor gold longs.
- Low Ratio: Oil outperforms. Commodity demand strong. Risk-on environment. Favor energy exposure.
VPA adds depth—high volume gold rallies during high ratio confirm safe-haven conviction.
Trading Insights with the Ratio
Watch extremes. Ratio spikes above 30—gold bullish bias. Drops below 15—oil momentum. Quantum indicators on NinjaTrader track both. Trend Monitor aligns direction. Currency strength shows related AUD/CAD flows (oil-linked).
Anna Coulling’s VPA approach with Quantum tools turns ratio shifts into disciplined trades. Volume confirms real moves.
The gold/oil ratio offers relational edge. It reflects risk and growth sentiment. Quantum indicators make spotting extremes reliable. Trade intermarket relationships with VPA confirmation.
By Anna Coulling