How to Apply Volume Analysis to Related Currency Pairs and Deliver a Knockout Punch
Related currency pairs offer powerful insights in forex. They share common currencies or risk themes. Applying volume analysis here reveals true sentiment. This can deliver a knockout punch—high-conviction trades with strong confirmation.
Trading using multiple timeframes is a well-established plank for any approach, but how about using the same timeframe across related markets or pairs? In this video we show you how using the US dollar as an example with a currency majors matrix. This reveals the power of the volume price analysis methodology and how using this approach you can add a further three-dimensional approach to your forex trading.
Step 1: Identify Related Pairs
Start with relational pairs. For example, AUD/JPY gauges risk appetite (commodity + safe-haven). EUR/AUD or GBP/AUD show euro or pound vs. commodity currencies. The currency matrix highlights these connections visually.
Step 2: Apply Volume Price Analysis (VPA)
Volume price analysis (VPA) is the knockout tool. Look for high volume on moves in one pair. Check if related pairs confirm with similar volume. Divergence warns of traps. High volume alignment signals conviction—enter for the punch.
Practical Example and Benefits
Suppose AUD strengthens on volume. AUD/JPY rises with volume support. This confirms risk-on sentiment. Short yen crosses or long AUD pairs. Quantum indicators on MT5 or NinjaTrader make spotting this fast. Anna Coulling’s approach turns relational VPA into winning edges.
Deliver knockout punches consistently. Apply volume analysis to related pairs for relational mastery. Quantum tools simplify the process.
Tape Reading and Its Evolution into Volume Price Analysis: Lessons from Wyckoff
Tape reading is one of the oldest trading techniques. It originated in the early 20th century. Traders watched the “ticker tape”—a stream of price and volume data. They interpreted order flow in real time. This revealed professional intent. Richard Wyckoff mastered this art. His methods remain foundational today.
What Tape Reading Revealed
Tape readers focused on volume and price behavior. High volume on upticks showed buying pressure. Low volume rallies hinted at weakness. Divergence—price highs on low volume—signaled distribution. Wyckoff formalized this into laws of supply/demand and cause/effect.
Wyckoff’s Legacy and VPA
Wyckoff’s three laws and Market Profile built the framework. Accumulation, markup, distribution, markdown cycles emerged from tape reading. Volume price analysis (VPA) is the modern evolution. It combines candle anatomy with volume. This makes tape reading accessible on digital charts.
VPA updates Wyckoff for today’s markets. High volume at lows = accumulation. Low volume at highs = distribution. Quantum indicators on NinjaTrader or MT5 visualize these signals—VPOC for control levels, Accumulation/Distribution for phases.
Why Tape Reading (and VPA) Still Matters
Markets haven’t changed at core. Professionals accumulate quietly, distribute into strength. VPA spots this through volume. Quantum tools make Wyckoff’s tape reading reliable in forex, stocks, or futures.
Tape reading gave birth to VPA. Wyckoff’s insights endure. Quantum indicators bring them to life visually. Apply VPA for disciplined trading—read the “tape” like the masters.
By Anna Coulling