How To Day Trade Futures Using The Volume Strength Relative Indicator On TradingView

A Tutorial On How To Use The VRSI Indicator To Day Trade Futures

The video provides a detailed tutorial on applying the VRSI indicator in Futures trading, demonstrating its effectiveness in identifying trend strength and momentum via volume pressure. The indicator’s colour-coded and bar-height visualisations offer intuitive signals for entry, exit, and position management. When used with VPA and multi-time frame analysis, VRSI helps traders confidently hold positions during volatile or congested phases, reducing emotional exits. The methodology applies universally across instruments and trading venues, including Globex-only environments, making it a versatile tool for day traders, swing traders, and investors alike.

00:00

Introduction to the VRSI indicator and futures application

00:00

The video introduces the Volume Relative Strength Indicator (VRSI) and its use in futures trading. It highlights that the indicator works across all markets, time frames, and instruments, having been previously demonstrated on stocks. The presenter plans to explore its application on futures, ETFs, and slower time frames such as daily, weekly, and monthly charts. The importance of using the VRSI in conjunction with the Volume Price Analysis (VPA) methodology is emphasised, noting that these two tools complement each other for swing, trend, and investment trading strategies.

02:00

Concept of pressure in volume and trend strength

02:00

The segment introduces the concept of pressure in trading, explained through the volume-price relationship to illustrate momentum and trend strength or weakness. It describes a workspace setup showing 5, 10, and 15-minute charts, with the top row featuring the Volume Relative Strength Indicator (VRSI) and the bottom row displaying pure volume data. The speaker clarifies that volume and price analysis are presented separately for clarity and focuses on explaining the VRSI indicator rather than providing detailed volume-price analysis, referring to other resources for that content.

03:49

Key components of the VRSI indicator are explained

03:49

The video explains the key components of an indicator used to analyse market pressure. It highlights the fulcrum point, which marks the shift between bullish and bearish sentiment, and the zero level as important reference points. Colour changes in the indicator represent sentiment strength, with dark colours indicating strong bullish or bearish trends and lighter colours showing weakening sentiment. The height of the pressure bars is emphasised as a critical element: high bars indicate increasing pressure, and low bars indicate decreasing pressure. Overall, the indicator provides a colourful, intuitive way to visualise market volume pressure.

05:04

Using VRSI to manage positions and hold trends

05:04

The speaker explains the challenge of managing positions in trading, especially resisting the emotional urge to close out when the market reverses. They introduce the VRSI indicator, designed to help traders maintain confidence in holding positions by monitoring volume and trend pressure. When pressure bars remain steady and do not drop quickly during a trend, it signals sustained momentum, encouraging traders to stay in the market rather than prematurely taking profits during minor pullbacks or congestion phases, which often prove costly as the trend usually continues afterwards.

06:12

Volume Price Analysis (VPA) is highlighted as a crucial decision-making tool, especially during secondary pullbacks. For example, in a downward trend, if the price rises but volume decreases, it signals the bearish trend will likely resume. The speaker also notes that the current session is purely electronic on Globex, emphasising that volume-based indicators work consistently regardless of location or market type. This session demonstrates that volume analysis remains effective even without the influence of simultaneous cash markets.

07:22

The discussion continues with observations on trading during the UK session on Globex alone, roughly 2.5 hours after the Forex market opens. The speaker notes that price action on Globex tends to be more straightforward and less volatile than during sessions that include cash market openings, which typically trigger large-volume spikes and price swings. This results in more measured, steady price movement during purely electronic trading hours. The speaker prepares to analyse charts and emphasises the importance of using multiple time frames to better understand trends.

08:34

Multi-time frame trend development overview

08:34

The speaker explains how trends develop across multiple time frames, starting from faster ones like the 5-minute chart and progressing to slower ones such as 10-minute and 15-minute charts. Using the example of the E-mini Dow Jones futures and related ETFs, they highlight how initial bullish momentum on the 5-minute chart quickly fades and shifts to bearish sentiment, which becomes less pronounced on slower time frames.

09:48

The discussion continues with the analogy of a pebble creating ripples in a pond to illustrate how trend momentum flows from faster to slower time frames. The bearish trend observed on the 5-minute chart starts to take hold on the 10-minute and 15-minute charts, emphasising the importance of viewing multiple time frames together. Technical signals on slower time frames carry more weight and help confirm trend strength and direction.

10:53

The speaker highlights the sustained height of the pressure bars across the 5-, 10-, and 15-minute charts, indicating sustained selling pressure without a significant drop-off. This multi-time frame pressure confirms the strength of the bearish trend. The importance of using these combined views is stressed to better understand market dynamics and trend development.

11:58

Volume Price Analysis (VPA) is introduced as a method to confirm trend strength, showing rising volume accompanying the downtrend with wide bearish candles. Rising volume supports the developing bearish trend across all three time frames. The relationship between VPA and the VRsi indicator is also noted, with both showing rising pressure and volume during the downtrend.

13:08

The overnight Asian market session is described as entering a congestion phase with low-pressure bars near the fulcrum, indicating limited movement. However, when volume and pressure increase sharply, a steep trend emerges, showing strong bearish sentiment despite the earlier volatility. The pressure bars rise steeply as the market moves lower, reinforcing the sustained bearish momentum.

14:16

As the European session opens around 8:00 UK time, liquidity increases, leading to a strong development of bearish pressure visible on the 15-minute chart. The high, sustained pressure bars confirm that bearish sentiment remains dominant. The speaker emphasises the importance of observing the relative heights of pressure bars to assess the strength and persistence of the trend.

15:22

Analysing bearish trends with VRSI and VPA

15:22

The segment discusses the analysis of pressure bars during the latter part of the Asia session, noting lower pressure but stronger momentum in a developing trend. A two-bar reversal and VPA (Volume Price Analysis) methodology are highlighted. The speaker introduces copper futures as another example, describing a bearish outlook based on volume profiles and chart colours indicating weak bullish momentum.

16:26

A detailed look at copper futures confirms a strong bearish trend with minimal bullish momentum. Volume profiles show a solid downward trend with steady pressure bars maintaining their height even during minor rallies or congestion phases. The trend remains strong and unbroken, indicating ongoing bearish momentum.

17:33

The analysis focuses on the resilience of pressure bars during pauses and congestion phases, showing consistent height and strength. There is some softening of momentum as the trend approaches a fulcrum point, suggesting a potential move into an extended congestion phase or a mild bullish upswing, but the bearish trend is not yet concluded.

18:35

Examining the 10-minute chart reveals a steep bearish trend, confirmed by rising, intensifying pressure bars. The relationship between the VRSI indicator and VPA methodology is emphasized, showing how steep trends correspond to strong, tall pressure bars. Early signs of sentiment weakening may lead to a flattening of the downtrend angle and a possible transition into a congestion phase with continued bearish bias.

20:30

The 15-minute chart continues to confirm the strong bearish momentum through rising pressure bars. Minor green punctuations are insignificant, reinforcing confidence in the downtrend. The importance of patience during congestion phases is stressed, with clear support and resistance levels offering natural price protection. Traders are advised to place stop losses above congestion zones to manage risk effectively.

21:59

The speaker concludes that volume-price analysis applies equally to futures traded on Globex and to cash markets, with timing differences compressing the data but not diminishing its usefulness. The price action in Globex is described as steady and less volatile, making it a viable and less stressful trading environment. The segment ends with a reinforcement of these points through additional future examples.

23:40

Review of crude oil futures using VRSI and VPA

23:40

The video analyses crude oil futures on the seal contract, highlighting a bearish trend with strong momentum across multiple time frames (5, 10, and 15 minutes). The VRSI indicator confirms the trend’s strength, showing no signs of weakening. Although minor reversals occur on the 5-minute chart, the overall pressure bars remain consistent, indicating that traders should stay in the trend without exiting prematurely.

24:45

As the London market opens, volume surges and pressure bars rise steadily, maintaining a consistent height, which supports the continuation of the downtrend. The trend is described as easy to trade with a steady 45-degree decline. VPA analysis on the 10-minute chart reveals an upthrust candle signalling failed rallies by big operators, reinforcing that the bearish trend will continue without reversal.

25:46

Further evidence of the trend’s persistence is provided by two attempts to rally, each with decreasing volume, indicating a secondary reversal against the primary downward trend. The falling volume during rising prices confirms the trend is unlikely to end soon. On the 5-minute chart, a surge in volume and pressure supports the ongoing price decline, emphasising no need to exit positions yet.

26:47

The 5-minute chart shows wide candles and consistent volume pressure as oil prices continue to fall. The discussion notes typical congestion phases and minor reversals near the fulcrum, but overall, the trend remains steady. Traders are advised to use multiple indicators, such as support/resistance, VPA, and trend monitors, to confirm signals rather than relying on a single tool.

27:19

The analysis emphasises considering fundamental factors affecting oil prices, such as OPEC decisions, supply and demand, weekly inventory reports, and seasonal influences. Despite these complexities, the intraday chart remains the primary focus for trading decisions. The current trend on 5, 10, and 15-minute charts is consistent with steady pressure bars and no significant weakening, encouraging traders to maintain their positions without emotional exits.

28:50

Gold futures are in a congestion phase and trading with patience

28:50

The video examines the current state of the gold futures market for the GC contract, noting that gold prices moved sideways within a tight $5 range between 1965 and 1970. This congestion phase is confirmed by the volume indicator, suggesting a period of low volatility. The presenter advises patience and waiting for a breakout from this congestion, with volume confirmation being key to validating any significant price movement.

30:29

The discussion highlights the application of the VRSI indicator on futures charts, emphasising its consistent functionality across different trading platforms and instruments, including cash, Globex, and ETFs. The presenter indicates plans for future videos covering longer-term time frames for investment, trend, and swing trading perspectives, ensuring that the techniques apply broadly across instruments and tickers.