Patience Is Required When You See the Signal of Volume Price Analysis
Volume price analysis (VPA) delivers powerful signals. High volume on moves shows conviction. But even strong signals require patience. Jumping in too early often leads to traps. Waiting for confirmation protects capital.
As a student of volume price analysis, it’s very easy to get excited when you see a clear signal of buying or selling by the insiders, and jump straight in. But patience is required as the initial signal may be just that – the first sign of buying or selling which is then confirmed with further signals which reinforce the message. In this video we use an example from spot forex and the GBP/JPY during the online webclass for volume price analysis students.
Why Patience Matters in VPA
VPA spots accumulation or distribution early. A signal appears—high volume at support, for example. But price may test further. Low volume spikes can fake reversals. True strength needs volume alignment. Rushing ignores this subtlety.
Practical Waiting Strategy
See a VPA signal? Pause. Wait for the candle close. Confirm with the next bar volume. High volume continuation validates entry. Low volume warns of trap. Quantum Trend Monitor on MT5 or NinjaTrader helps—stay out until alignment.
Benefits of Patient VPA Trading
Patience turns good signals into great trades. Avoid emotional entries. Let winners develop. Anna Coulling’s VPA methodology teaches this discipline. Quantum indicators make waiting easier—alerts for confirmed moves.
Patience is required when you see the signal. Volume price analysis rewards those who wait. Quantum tools guide disciplined decisions. Master this for consistent results.
Richard Wyckoff and His Three Laws: The Foundation of Volume Price Analysis
Richard Wyckoff was a trading pioneer in the early 20th century. He studied markets intensely. He watched “tape reading”—real-time price and volume data. This revealed professional (smart money) intent. Wyckoff formalized his observations. He developed three fundamental laws. These remain the bedrock of modern Volume Price Analysis (VPA).
Wyckoff’s Background and Tape Reading
Wyckoff started as a runner on Wall Street. He observed how large operators moved markets. They accumulated quietly at lows. Distributed at highs. Tape reading showed volume clues. High volume on up moves = buying pressure. Low volume rallies = weakness. Wyckoff saw markets as cycles driven by supply and demand.
The Three Laws Explained
Wyckoff distilled tape reading into three laws:
- Law of Supply and Demand Price rises when demand exceeds supply. Falls when supply exceeds demand. Balance creates ranges. Volume confirms—high volume up = demand winning.
- Law of Cause and Effect Every effect (price trend) has a cause (prior phase). Accumulation (cause) leads to markup (effect). Distribution to markdown. Larger cause = stronger effect.
- Law of Effort vs Result Effort (volume) should match result (price move). High effort, low result = absorption (professionals opposing). Divergence signals change.
These laws explain market behavior timelessly.
How Wyckoff’s Laws Became VPA Foundation
Volume Price Analysis (VPA) modernizes Wyckoff. It focuses on candle anatomy with volume. High volume at lows = accumulation (Law 1 & 2). Low volume highs = distribution (Law 3). VPA applies these to digital charts. Quantum indicators on NinjaTrader or MT5 visualize them—VPOC for control, Accumulation/Distribution for phases.
Anna Coulling’s VPA builds directly on Wyckoff. It teaches reading professional intent today.
Wyckoff’s three laws are trading’s foundation. They reveal supply/demand, cause/effect, effort/result. VPA with Quantum tools brings them to life. Master these for disciplined, timeless trading.
By Anna Coulling