GBP/USD Potential Reversal: Classic VPA Cycle in Action
GBP/USD shows a classic volume price analysis (VPA) cycle. It starts with congestion. Price ranges tightly. Volume stays low. This builds pressure.
This is a perfect example of Cable in a congestion, followed by the breakaway,then comes the trend and now possibly a reversal.
Breakaway and Trend Phase
A breakaway follows. Price escapes congestion on high volume. This confirms conviction. Trend develops steadily. Up candles widen with rising volume. Quantum Trend Monitor stays aligned, supporting longs.
Signs of Potential Reversal
Now, reversal signals emerge. Price hits highs on falling volume—divergence warns of weakness. Distribution appears. Quantum Accumulation/Distribution indicator turns negative. A bearish candle on volume spike suggests exhaustion.
Trading Lessons from This Cycle
This GBP/USD example teaches patience. Congestion builds setups. Breakaways with volume validate trends. Reversals need confirmation—wait for divergence. Anna Coulling’s VPA methodology spots these phases early. Quantum tools on MT5 or NinjaTrader make them visual.
Watch GBP/USD closely. Potential reversal could shift momentum. Use VPA with Quantum indicators for confident decisions in this pair. Classic cycles like this reward disciplined traders.
Breakout Trading: How Volume Price Analysis (VPA) Confirms Valid Moves
Breakout trading is one of the most exciting strategies. Price escapes a range or level. Momentum follows. Traders enter for quick profits. But many breakouts fail. False moves trap impatient buyers or sellers. Volume price analysis (VPA) solves this. It confirms conviction with volume.
Why Many Breakouts Fail
Ranges consolidate energy. Price tests support/resistance. Spikes attract chasers. But low volume on the break shows no real participation. Professionals fade these—price reverses. This creates classic traps.
How VPA Confirms True Breakouts
VPA reads volume on the breakout candle. High volume with widening spread signals conviction. Buyers (or sellers) dominate. This validates momentum. Low volume break = trap—stay out or fade.
Quantum Trend Monitor on NinjaTrader or MT5 aligns direction. VPOC at the level adds confluence—high volume break from VPOC = strong confirmation.
Practical Breakout Trading Tips with VPA
- Identify the Range: Clear support/resistance on higher timeframe.
- Wait for Break: Price closes beyond level.
- Volume Check: High volume candle = enter. Low volume = avoid.
- Pullback Entry: Re-test broken level on low volume—add position.
- Stop and Target: Stop beyond range. Target next VPOC or measured move.
Example: EUR/USD ranges. High volume upside break—long entry. Pullback to former resistance (now support) on low volume—add. Trend continues.
Benefits of VPA in Breakout Trading
VPA reduces false signals. High volume confirms professional intent. Quantum indicators make it visual. Anna Coulling’s VPA methodology turns breakouts into disciplined trades.
Master breakout trading with VPA confirmation. Quantum tools deliver the edge. Avoid traps—trade conviction, not noise.
By Anna Coulling