Understanding how markets relate to one another can help both traders and investors. Volume price analysis and our Quantum tools make this a lot easier and in this video we consider how moves in the Japanese yen were a precursor to yesterday’s dramatic market sell-off.
Trading with Intermarket Analysis
Intermarket analysis is a powerful approach for traders. It studies relationships between asset classes: stocks, bonds, commodities, and currencies. These markets are interconnected. Moves in one influence others. Understanding this reveals broader sentiment. Volume price analysis (VPA) confirms conviction across markets.
Core Intermarket Relationships
Key links drive trading insights:
- Bonds and Stocks: Bond prices fall (yields rise) in risk-on—equities rally. Yields drop in risk-off—stocks weaken.
- USD and Commodities: Strong USD pressures gold/oil lower (priced in dollars). Weak USD boosts them.
- Oil and Commodity Currencies: High oil lifts CAD (Canada exporter). Low oil weakens it.
- Gold and Safe-Havens: Risk-off surges gold and JPY/CHF.
- Equities and Risk Currencies: Stocks up favors AUD/NZD.
These correlations shift but persist long-term.
Why Intermarket Analysis Matters
Single-market focus misses context. A stock rally with falling bonds = risk-on confirmation. Gold rising while USD weakens = safe-haven demand. VPA spots real moves—high volume across related assets validates sentiment.
Quantum currency strength indicator ranks relational extremes. Matrix shows cross-asset flows.
Practical Trading Examples
- Risk-On Signal: Equities rally on high volume. Bond yields rise. AUD/JPY surges—long commodity vs yen crosses.
- Risk-Off Warning: Bonds rally (yields fall). Gold spikes on volume. Short AUD/JPY.
- USD Strength: Yields up, USD rallies vs majors. Short EUR/USD.
VPA confirms—high volume alignment across markets = conviction trade.
Enhancing with Quantum Tools
Quantum indicators on MT5 or NinjaTrader visualize intermarket links. Currency strength ranks safe-havens vs risk currencies. Volatility indicator flags shifts.
Anna Coulling’s VPA approach with Quantum tools turns intermarket relationships into disciplined trades.
Intermarket analysis reveals hidden sentiment. Assets move together for reasons. Quantum with VPA delivers the edge. Trade the big picture.
The 3D Approach to Forex Trading: Technical, Fundamental, and Relational Analysis Explained
Anna Coulling’s book A Three Dimensional Approach to Forex Trading revolutionized how traders view the market. It introduces the “3D” framework. Forex isn’t one-dimensional. Price charts alone miss the full picture. Successful trading requires three layers: technical, fundamental, and relational analysis. Integrating them creates a complete view. This reduces noise. It reveals high-probability opportunities.
1. Technical Analysis: The Price and Volume Foundation
Technical analysis studies price action and volume. This is the core of VPA (Volume Price Analysis).
- Price Action: Candles, support/resistance, trends.
- Volume: Confirms conviction—high volume on moves shows real strength. Low volume warns of traps.
VPA reads professional intent. High volume rallies = sustained buying. Divergence = potential reversal. Quantum indicators on MT5 or NinjaTrader visualize this—Trend Monitor aligns direction, VPOC marks key levels.
Technical is the “what is happening now” layer.
2. Fundamental Analysis: The Economic Drivers
Fundamentals explain why prices move. They include:
- Central bank policy (rates, QE).
- Economic data (GDP, inflation, employment).
- Geopolitical events.
Strong data boosts currency. Weak signals cuts. Hawkish central banks strengthen. Dovish weaken.
This layer provides context. Technical signals without fundamentals risk fighting big forces.
3. Relational Analysis: The Inter-Currency Dimension
Forex is relational—currencies trade in pairs. One’s strength is another’s weakness. Relational analysis ranks currencies against each other.
- Currency Strength Indicator: Live rankings—spot leaders/weak.
- Currency Matrix/Array: Visual grid of cross-pair bias.
Risk-on favors commodity currencies (AUD, NZD). Risk-off boosts safe-havens (JPY, CHF). Quantum tools make this instant—matrix shows “full house” alignments for conviction trades.
Relational is the “how currencies interact” layer—often overlooked but crucial.
Why the 3D Approach Works
Single layers mislead. Technical spike without fundamental support = trap. Relational extreme without volume = false. The 3D integrates:
- Fundamentals for bias.
- Technical (VPA) for timing.
- Relational for pair selection.
Quantum dashboard combines all—strength, matrix, array. VPA confirms with volume.
Anna Coulling’s 3D approach turns forex complexity into clarity. Quantum tools make it actionable.
Master the three dimensions for disciplined trading. Technical, fundamental, relational—together they reveal the full market picture.
Examples of 3D Trading Setups: Combining Technical, Fundamental, and Relational Analysis
Anna Coulling’s “Three Dimensional Approach to Forex Trading” transforms how we view markets. It integrates three layers: technical (price and volume via VPA), fundamental (economic drivers), and relational (currency interactions). This 3D framework spots high-probability setups. Single-layer analysis misses context. Together, they reveal conviction. Quantum indicators make it practical.
Here are real-world examples of 3D setups:
Example 1: Bullish EUR/USD – ECB Dovish Shift Fades
- Fundamental: ECB signals pause on hikes amid cooling inflation. Growth concerns ease. This supports euro relatively.
- Relational: Currency strength indicator ranks EUR rising vs USD (Fed hawkish but overextended). Matrix shows green in EUR pairs.
- Technical (VPA): EUR/USD pullback to support on low volume—weak selling. High volume rebound candle—buying conviction. Long entry.
Outcome: Sustained rally as relational strength aligns with VPA confirmation. Quantum Trend Monitor green throughout.
Example 2: Bearish GBP/JPY – Risk-Off Surge
- Fundamental: UK data weakens (high inflation, slow growth). BoE dovish hints. Global risk-off from equity drops.
- Relational: JPY ranks top (safe-haven buying). GBP low. Matrix deep red in GBP/JPY—yen dominance.
- Technical (VPA): GBP/JPY new high on low volume—divergence. High volume down candle—selling conviction. Short entry.
Outcome: Sharp decline as safe-haven flows accelerate. VPA spots distribution early.
Example 3: Neutral to Bullish AUD/USD – China Recovery
- Fundamental: Strong Chinese PMI/data—commodity demand rises. RBA steady rates.
- Relational: AUD ranks high vs USD (risk-on). Matrix green in AUD pairs.
- Technical (VPA): AUD/USD rangebound. Low volume at lows—accumulation. High volume breakout up—momentum long.
Outcome: Trend higher on commodity strength. Quantum currency array shows steep AUD lines.
Why the 3D Approach Wins
Fundamentals give bias. Relational spots leaders. Technical (VPA) times entries with volume conviction. Missing one layer risks false signals.
Quantum tools on MT5 or NinjaTrader visualize all three—strength for relational, Trend Monitor for technical, volatility for context.
The 3D approach reveals complete market picture. Quantum indicators make it actionable. Trade with all dimensions for disciplined, consistent results.
By Anna Coulling