When Volume Really Does Reveal the Truth Behind the Price Action
Price action can deceive traders. It looks strong or weak. But volume tells the real story. Volume price analysis (VPA) combines both. This uncovers true market intent. High volume on moves shows conviction. Low volume warns of traps.
Classic VPA Signals That Reveal Truth
High volume on up candles confirms buying pressure. Price rises with conviction. Low volume on rallies signals weakness. Sellers absorb buying. This often leads to reversals. Divergence appears when price makes new highs on falling volume. Distribution is underway.
An excellent trading session for US indices, commodities and stocks following the extreme moves of last week and at times such as this, volume price analysis becomes ever more powerful in helping to reveal the truth behind the price action. What was interesting here was the volume associated with the wide spread down candle which was the precursor to extreme volatility which followed and which is likely to continue for the next few days as markets calm after the storm. Whilst the volume associated with the candle was high, as we explained in the session, this appears to be an anomaly, and certainly when compared to volume on the following day, which was extreme, and highlighted this anomaly further. So what are we to make of this, and all was explained in the session as we focused on the YM emini daily chart along with other US indices.
And for intraday index traders, we picked up a great move in the YM emini late in the trading session, which delivered a wonderful trend lower on the renko charts and highlighted the power of blending two charting techniques to help keep you in as the trend extends.
Real Examples in Action
Consider a stock rallying sharply. Price hits new highs. But volume drops. VPA reveals the truth—professionals selling into strength. A reversal follows. Quantum indicators on NinjaTrader highlight this early. Accumulation/Distribution turns negative. Trend Monitor warns of fading momentum.
Why Volume Is the Ultimate Truth-Teller
News or sentiment drives price. Volume shows if institutions agree. High volume validates the move. Low volume exposes illusions. Anna Coulling’s VPA methodology teaches this—trust volume over price alone. Quantum tools make spotting truth visual and reliable.
When volume reveals the truth, trading becomes clearer. Ignore it at your peril. Apply VPA with Quantum indicators for confident decisions. Volume always has the final word.
Who Volume Traders Follow: Market Makers and Their Unhidden Activity
Volume traders have a clear focus. We follow the market makers. These are the professionals—institutions and “smart money.” They drive real trends. Retail traders chase noise. But market makers leave footprints. Volume reveals their activity. They cannot hide where they’re taking the market next.
Why Market Makers Can’t Hide
Market makers trade large volumes. This moves price. High volume on up candles shows buying conviction. Low volume rallies signal distribution—they’re selling into strength. Divergence appears—price highs on low volume warn of reversals. Volume price analysis (VPA) spots this early.
VPA reads their intent. High volume at support = accumulation (buying). High volume at highs = distribution (selling). Quantum Accumulation/Distribution indicator on NinjaTrader highlights phases visually.
Following the Smart Money
Retail traders react. Professionals anticipate. They accumulate quietly at lows. Distribute at highs. VPA aligns you with them. High volume continuation = stay in trend. Low volume extremes = prepare for reversal.
Quantum Trend Monitor keeps you with market makers. VPOC marks their control levels.
Practical Advantages for Traders
Following market makers reduces traps. Avoid low-volume spikes—retail FOMO. Enter on high volume confirmation—professional conviction. Anna Coulling’s VPA methodology teaches this discipline. Quantum tools make spotting their activity reliable.
Volume traders follow market makers. Their activity is unhidden in volume. VPA with Quantum indicators reveals where the market heads next. Trade with the smart money—not against it.
By Anna Coulling
Creator of Volume Price Analysis