In this session Anna and David look at some key stocks and what they said last year, and where they are now. These included Macy, General Electric, Trip Advisor and Kroger and all covered in Anna’s book Stock Trading and Investing Using Volume Price Analysis. Some great examples of volume price analysis in action and whether you are an investor or stock trader, the lessons here can be applied across all timeframes and markets. And ofcourse, supported by the tools and indicators for NinjaTrader from Quantum Trading.
You can find all the analysis of these stocks in Anna’s book, Stock Trading & Investing Using Volume Price Analysis on Amazon.
What this session also shows is how the Quantum Trading tools and indicators can be applied to all markets and all timeframes. In this session we were considering the daily and weekly timeframes for stocks using the NinjaTrader tools and indicators.
Can I Apply Volume Price Analysis as an Investor in Stocks?
Yes, absolutely—Volume Price Analysis (VPA) is not just for day traders or scalpers. It works brilliantly for long-term investors in stocks. VPA reads volume alongside price to reveal professional intent. This helps identify accumulation (buying) phases for entry and distribution (selling) for exits. Investors use higher timeframes to spot sustained trends and avoid traps.
Why VPA Suits Stock Investing
Investors seek quality companies for years of growth. VPA confirms when smart money is building positions:
- Accumulation Phases: High volume at lows on weekly/monthly charts shows professionals buying quietly. Price ranges—perfect entry before markup.
- Trend Confirmation: Rising prices with increasing volume = strong uptrend. Hold confidently.
- Distribution Warnings: New highs on low volume—divergence. Professionals selling. Time to consider exits.
VPA filters noise. Avoid buying into hype (low volume rallies). Focus on conviction moves.
Practical VPA for Investors
Use weekly or monthly charts:
- High volume support hold = accumulation—buy for long-term.
- Low volume at highs = distribution—caution or sell.
- Quantum Accumulation/Distribution indicator on NinjaTrader or TradingView spots phases early.
Example: Stock like AAPL in accumulation—volume rises at lows, price stabilizes. Break higher on volume—long-term uptrend begins.
Advantages for Investors
VPA aligns with fundamentals. Strong volume in growth stocks confirms institutional support. Avoid weak names—low volume extremes signal fading interest.
Anna Coulling’s VPA methodology with Quantum tools turns investing into disciplined decisions. Higher timeframes reveal the big picture.
Yes, apply VPA as a stock investor. It reveals professional intent for long-term holds. Quantum indicators make multi-timeframe analysis reliable. Start with weekly charts—build positions with conviction.
Are Tape Reading, Wyckoff, and VPA Related?
Yes, tape reading, the Wyckoff Method, and Volume Price Analysis (VPA) are deeply connected. They form a direct lineage in market analysis. Each builds on the previous. All focus on reading professional intent through price and volume. This reveals true market direction.
Tape Reading: The Origin
Tape reading began in the early 20th century. Traders watched the “ticker tape”—real-time price and volume data. They interpreted order flow. High volume on upticks showed buying pressure. Low volume rallies hinted at weakness. This was the raw art of reading market psychology.
Wyckoff Method: Formalizing Tape Reading
Richard Wyckoff mastered tape reading. He formalized it into a structured methodology. His three laws (supply/demand, cause/effect, effort/result) explain market behavior. Wyckoff identified phases—accumulation, markup, distribution, markdown. All rooted in volume clues from the tape.
Wyckoff made tape reading systematic. He taught aligning with “smart money.”
VPA: The Modern Evolution
Volume Price Analysis (VPA) is the contemporary application. Anna Coulling refined Wyckoff for digital charts. VPA reads candle anatomy with volume. High volume at lows = accumulation. Low volume at highs = distribution. Divergence warns of reversals.
VPA carries Wyckoff’s laws forward. Quantum indicators on NinjaTrader or MT5 visualize them—VPOC for control levels, Accumulation/Distribution for phases.
The Direct Relationship
Tape reading provided raw data. Wyckoff structured it into principles. VPA applies those principles today. All share the core idea: Volume reveals professional intent price alone hides.
Quantum tools make this lineage actionable. Trend Monitor aligns Wyckoff markup/markdown. Currency strength adds relational depth.
Tape reading, Wyckoff, and VPA are directly related. They evolve the same truth—volume shows the way. Quantum indicators bring it to modern trading.
By Anna Coulling