More Volume Price Analysis Lessons in the London Forex Session
The London forex session offers more volume price analysis (VPA) lessons. High liquidity creates clear signals. Volume surges early. This reveals true market intent. Traders learn to spot conviction quickly.
More great volume price analysis lessons this morning in the London forex session as we focused on the British pound, with further volatility expected as Brexit continues to exert its influence across the complex.
But we started with a look at the NZD/CAD on the daily timeframe which continues to remain firmly anchored to the top of the heatmap, as we wait for the pair to weaken and move away from this extreme position. As always, patience is required, and the approach here is the same, whether for the currency strength indicator or the currency heatmap when trading extremes. For the former it is the currencies themselves, and for the latter it is the currency pairs. In either case, patience is required along with wide stop loss positioning and then waiting for the move to develop.
From there we moved to the British pound and in particular a move on the GBP/JPY with several signals suggesting a reversal following the initial move higher, with volume, support and resistance, volatility and of course the currency strength indicator all helping to confirm the price action on the screen.
Key VPA Signals at London Open
Volume price analysis shines during overlap. High volume on up candles shows buying pressure. Low volume warns of traps. Quantum indicators on MT5 or NinjaTrader highlight these—Trend Monitor confirms trends, Accumulation/Distribution spots building phases.
Practical Lessons for Traders
Watch major pairs like EUR/USD or GBP/USD. Divergence between price and volume signals reversals. Patience pays—wait for volume confirmation. Anna Coulling’s VPA approach turns session volatility into consistent opportunities. Quantum tools make lessons actionable.
London session delivers rich VPA education. More lessons mean better trading discipline. Apply them with Quantum indicators for confident results across sessions.
Some Trading Examples Using Volume Price Analysis (VPA)
Example 1: Avoiding FOMO at London Open
London open spikes often trigger FOMO. Price gaps higher on EUR/USD. Traders chase the move. But volume is low—no conviction from professionals.
VPA reveals the trap. Candles widen, but volume bars shrink. This shows weakness. Quantum Trend Monitor stays flat. Smart traders wait. Price reverses lower on high volume—distribution confirmed.
Result: Short entry at the high. Profit as the euro falls. Lesson: FOMO ignores volume at your peril. Quantum indicators keep you disciplined.
Example 2: Spotting a Reversal on GBP/JPY
GBP/JPY rallies sharply. Traders pile in, fearing they’ll miss the trend. But VPA signals exhaustion. Price hits new high. Volume drops—divergence!
Quantum Accumulation/Distribution indicator turns red. This warns of selling pressure. A bearish engulfing candle forms on low volume. Reversal confirmed when volume spikes lower.
Result: Short entry on the break. Profit as yen strengthens. Lesson: High price on low volume = professional distribution. Quantum tools spot it early.
Example 3: Confirming a Trend on AUD/USD
AUD/USD trends higher during Asian/London overlap. Volume rises steadily—buying conviction. Quantum Currency Strength Indicator ranks AUD top, USD weak.
No divergence—price and volume align. Trend Monitor stays green. Pullback to support holds on high volume. Perfect long entry.
Result: Ride the trend for multiple days. Profit on continuation. Lesson: Rising price + rising volume = sustainable trend. Quantum matrix confirms relational strength.