by Quantum Trading Comment Closed

A Morning for the Volatility Indicator and the Volume Point of Control!

A morning of high volatility hit the forex markets. Trade talks between US and China drove the action. Uncertainty sparked sharp moves. Majors like EUR/USD and GBP/USD swung wildly. This created opportunities—and traps.

With the forex markets in a febrile state as trade talks between the US and China continue to rumble on, it was a morning when the volatility indicator and volume point of control indicators from Quantum Trading were much in evidence. And not only on the currency markets but also on Globex for the indices, which reflect this ebb and flow in risk sentiment, which in turn is mirrored in risk assets and risk currencies.

Volatility Indicator in Action

The Quantum volatility indicator signalled early. Spikes highlighted expansion phases. High readings warned of big swings. Traders prepared for momentum. Volume price analysis (VPA) confirmed—high volume on moves showed conviction. Low-volume spikes revealed false breakouts.

Volume Point of Control Takes Centre Stage

The Volume Point of Control (VPOC) took centre stage. It marked fair value levels. Price tested VPOC repeatedly. High volume holds signaled support/resistance. Breaks on volume confirmed direction. Quantum VPOC on MT5 or NinjaTrader made these zones visual and reliable.

Trading Lessons from Trade Talk Volatility

News like US-China talks creates chaos. VPA navigates it. Wait for volume confirmation. Avoid chasing low-volume spikes. Quantum Trend Monitor aligned direction. Patience turned volatility into disciplined trades.

This morning rewarded prepared traders. Volatility indicator and VPOC delivered key insights. Quantum tools with VPA turned event-driven noise into opportunities. Stay volume-focused for consistent results.

The VPOC and Volume Profile: Defining Support and Resistance with Volume on the Y Axis

Volume Price Analysis (VPA) reveals market structure through volume. The Volume Profile displays volume on the Y axis (price levels). This shows where trading activity concentrated. High volume areas act as strong support or resistance. Low volume regions allow price to pass quickly. The Volume Point of Control (VPOC) marks the peak.

Volume Profile on the Y Axis

Traditional charts show volume below price (X axis). Volume Profile flips it—volume bars extend horizontally from price levels on the Y axis. This creates a histogram. It highlights:

  • High Volume Nodes (HVN): Thick bars—much trading occurred. Price accepted here. Strong support/resistance.
  • Low Volume Nodes (LVN): Thin bars—little activity. Price rejects or accelerates through.

Quantum VPOC indicator on NinjaTrader or MT5 plots this clearly.

VPOC: The Strongest Level

The VPOC is the price with highest volume in the profile. It’s “fair value”—most agreement. Price gravitates back. In uptrends, VPOC supports pullbacks. In downtrends, resists rallies. High volume at VPOC confirms conviction.

High Volume Nodes as Support/Resistance

HVN shows professional participation. Price bounces or consolidates here. High volume rejection = strong level. VPA confirms—high volume hold validates S/R.

Low Volume Nodes: Acceleration or Rejection Zones

LVN has little interest. Price moves through fast—breakouts accelerate. Or rejects on retest—reversal potential. Low volume extremes warn of traps.

Practical Trading Insights

Use Volume Profile for:

  • Support in uptrends (HVN/VPOC bounce).
  • Resistance in downtrends.
  • Breakouts through LVN = momentum.

Quantum indicators make profile visual. Combine with Trend Monitor for alignment.

Volume on the Y axis reveals true S/R. VPOC and HVN/LVN define market structure. Quantum tools with VPA deliver reliable levels.

Why Slower Timeframes Have Greater Weight

Time adds conviction. A daily VPOC covers 24 hours of global trading. Weekly even more. High volume at a level over days or weeks shows sustained professional interest. Lower timeframes (hourly, 15-minute) show short-term noise. They react fast but lack depth.

Slower VPOC acts as major support/resistance. Price respects it more. Breaks require high volume conviction. Quantum VPOC indicator on NinjaTrader or MT5 plots across frames—daily for structure, lower for timing.

Practical Multi-Timeframe VPOC Examples

  • Higher Timeframe Strength: Weekly VPOC holds as support. Price tests on daily—high volume bounce confirms. Long entry.
  • Lower Timeframe Timing: Daily VPOC rejection. Hourly shows low volume spike—trap. High volume reversal—short entry.
  • Confluence Power: Daily and weekly VPOC align—ultra-strong level. High volume reaction = high-probability trade.

VPA confirms—high volume at slower VPOC validates real intent.

Benefits for Traders

Multi-timeframe VPOC reduces false signals. Higher frames for bias—avoid counter-trend fights. Lower for precise entries. Slower levels carry “weight of time”—institutions build positions gradually.

Quantum tools make this visual. Switch timeframes seamlessly. Spot weighted levels fast.

Why This Approach Wins

Slower timeframes reveal professional structure. Faster show retail noise. VPA with multi-timeframe VPOC aligns you with smart money. Anna Coulling’s methodology turns time-weighted levels into disciplined trades.

Use VPOC across timeframes. Slower ones carry more weight for good reason. Quantum indicators deliver reliable multi-frame insight.

By Anna Coulling