A Classic Volume Price Analysis Signal
A classic volume price analysis (VPA) signal appeared on AUD/USD. The pair was in a clear downtrend. Downward momentum looked set to continue. This signal was hard to miss for VPA traders.
In Falling Markets
In falling markets, one of the great signals we always look for as forex volume traders is the candle highlighted on the chart, and it is often an excellent re-entry signal to any trend if you have missed an opportunity higher in the trend. And the signal is simple and clear. Price weakness as denoted with the deep wick to the upper body of the candle, but associated with high volume. The market has tried to rally on excellent volume but closed lower on the day.
Clearly, the market makers are selling into weakness, and therefore, we can expect the trend lower to continue. You can join me in my free forex webclass where I explain this and other principles of volume price analysis, which you can then apply to your own trading – join here http://bit.ly/3cB64cH
The Signal in the Downtrend
Price fell steadily. Down candles widened. Volume rose on these moves. This showed strong selling conviction. No buying support emerged. Low volume on minor bounces confirmed weakness. Quantum Trend Monitor on MT5 or NinjaTrader stayed aligned bearish.
Why It Signalled Continuation
High volume on down candles in a downtrend signals distribution. Sellers dominate. No exhaustion appeared. This classic VPA setup predicts further declines. Anna Coulling’s methodology teaches spotting these for timely shorts.
AUD/USD’s signal rewarded bearish bias. Quantum indicators made the continuation obvious. Classic VPA like this builds consistent trading discipline. Apply it across pairs for reliable downtrend trades.
Why Falling Markets Are Great for Traders Using VPA
Falling markets scare many traders. Prices drop sharply. Panic sets in. But for volume price analysis (VPA) traders, bear markets are terrific. They offer clear short opportunities. Downtrends often move faster than uptrends. This creates high-probability setups.
Why Downtrends Deliver for VPA Traders
Downtrends show strong conviction selling. Volume price analysis reveals this early. High volume on down candles signals distribution—professionals unloading positions. Low volume rallies warn of traps—weak buying. VPA spots these clearly. Short entries align with momentum.
Falling markets accelerate on fear. Leverage amplifies gains. Pullbacks on low volume offer better risk-reward shorts.
VPA Signals in Bear Markets
VPA shines in declines:
- Distribution at Highs: New highs on low volume—sell into strength.
- High Volume Down Moves: Conviction selling—short continuation.
- Stopping Volume at Lows: Ultra-high volume halting fall—potential reversal (exit shorts).
Quantum Trend Monitor on NinjaTrader stays red in downtrends. Accumulation/Distribution turns negative early. This keeps you aligned.
Practical Advantages for Traders
Bear markets reward shorts. Faster moves mean quicker profits. Fewer “hope” longs interfere. VPA avoids traps—low volume bounces fade. Quantum tools make spotting conviction reliable.
Anna Coulling’s VPA methodology turns falling markets into disciplined opportunities. Quantum indicators deliver the edge in bear phases.
Falling markets are great for VPA traders. They offer clear, high-conviction shorts. Quantum tools make navigating downside reliable. Embrace bear trends—volume reveals the real opportunities.
By Anna Coulling
Creator of Volume Price Analysis