A Wonderful Day for Reversal Traders in US Markets
A wonderful day for reversal traders in US markets. Sharp moves created exhaustion signals. Volume price analysis spotted turning points early. Reversal setups appeared across indices and stocks.
Key VPA Reversal Signals
Volume price analysis (VPA) highlighted classic reversals. High volume at highs showed distribution. Stopping volume at lows confirmed buying. Quantum indicators on NinjaTrader flagged these quickly for timely entries.
Benefits for Reversal Traders
Reversal traders thrived on this volatility. Divergence between price and volume warned of changes. Anna Coulling’s methodology with Quantum tools turned potential traps into profits.
Days like this reward patient reversal strategies. Combine VPA with Quantum indicators for consistent results in US markets.
About This Session
A real game of two risk-off today. In the first half, risk off sentiment was duly replaced with a return to risk-on, as the major US indices and exchanges reversed all the losses of the first part of the session to close near or above the opening price.
The reversal was instantly clear in the volume-price action, both intraday and on the daily chart itself. Volume price analysis, as always, is the starting point, and with last week’s NFP still fresh in the mind, the prospect of rising interest rates had taken its toll on the markets. However, on both the 4th and 5th of October, whilst the indices fell during the session, they also recovered off the lows.
More importantly, this was on high volume, sending a clear signal that the big operators were buying and absorbing the selling pressure. Indeed, this was the pattern we saw during the webinar: a dramatic move lower then reversed, ending the day above the open price, and with a deep wick to the lower body once more, and again with excellent volume. The buying that created the reversal was instantly clear to volume-price analysis traders.
What About Relational?
From a relational perspective, it was also very easy to see when and why the markets had reversed in sentiment. We can simply consider the yen index and the yen itself on the currency strength indicator . Here, we had a signal too strong to miss, with the yen selling off sharply and the yen index falling.
So a great session once again and one where there was money to be made on both sides of the market. As always, this is made easier when coupled with the power of the Quantum Trading indicators. These help traders get in, stay in, and get out at the right time. And in summary, a terrific day for reversal traders in the major US indices and stock markets.
How to Spot Reversals Using Volume Price Analysis
Reversals are key turning points in markets. Spotting them early offers high-probability trades. Volume price analysis (VPA) excels here. It reads volume to reveal exhaustion or building strength. Four classic signals help: stopping volume, topping out volume, accumulation, and distribution.
Stopping Volume: The Bottom Reversal Signal
Stopping volume appears at market lows. Price falls sharply. Then ultra-high volume hits on a down candle. This halts the decline. Buyers absorb selling pressure. The candle often closes higher. Reversal upward follows. Quantum VPOC indicator on NinjaTrader highlights these levels.
Topping Out Volume: The Exhaustion Signal
Topping out (or climactic) volume marks highs. Price surges. Volume spikes massively. But price stalls or closes weak. Buyers exhausted. Sellers take control. Reversal lower likely. VPA spots distribution—professionals unloading.
Accumulation: Building Strength at Lows
Accumulation shows smart money buying quietly. Price tests lows. Volume rises on down candles but price holds. Narrow spreads appear. This signals buyers stepping in. Break higher on volume confirms reversal. Quantum Accumulation/Distribution indicator tracks this phase.
Distribution: Hidden Weakness at Highs
Distribution reveals selling at highs. Price makes new peaks. Volume high but price fails to advance. Wide up candles close weak. This shows professionals distributing to retail buyers. Breakdown on volume signals reversal lower.
Practical VPA Reversal Trading
Combine signals for confidence. Stopping volume + accumulation = strong long. Topping volume + distribution = reliable short. Use multiple timeframes—higher for bias, lower for entry. Quantum tools on MT5 or NinjaTrader make spotting them visual. Trend Monitor warns of fading momentum.
Reversals reward patience. VPA reveals true intent through volume. Quantum indicators turn signals into disciplined trades. Anna Coulling’s methodology spots them across forex, stocks, or futures.
Master these VPA reversal signs. Quantum tools enhance precision. Trade turns with greater confidence.
By Anna Coulling
Creator of Volume Price Analysis