Quantum VRSI Indicator Introduction For TradingView

Highlights Of The Volume Relative Strength Indicator (VRSI) For TradingView

The Volume Relative Strength Indicator (VRSI) was developed to integrate price and volume analysis in a novel way, focusing on the concept of “pressure” within market moves. Pressure reflects the intensity or momentum behind price movements, measured through volume and price relationships. The VRSI is designed as a supportive tool for the core Volume Price Analysis (VPA) methodology, providing a clearer graphical view of volume-pressure dynamics across trend and congestion phases. The indicator works across all time frames, from scalping and intraday trading to swing trading and long-term investing.

 

00:00:00 – 00:04:46

Introduction to the Volume Relative Strength Indicator VSI

00:00:00 – 00:03:27
This video introduces the Volume Relative Strength Indicator (VRSI), developed to combine price and volume analysis by focusing on the concept of ‘pressure’ within market moves. The VRSI aims to graphically reveal whether price movements are accompanied by strong, rising, or diminishing volume pressure. It is designed to complement the core Volume Price Analysis methodology by offering a new perspective that peels back layers of the price-volume relationship, emphasising pressure as the key descriptive term. The indicator is versatile and applicable across all time frames, from scalping to long-term investing.

00:02:55 – 00:04:46
For clarity, the video focuses on a single 10-minute chart to demonstrate the VRSI, though other videos will explore multiple time frames, an essential aspect for traders and investors. The VRSI reveals volume-pressure associated with price moves, and the presentation includes six charts: three showing combined price-volume analysis using the VRSI, and three identical charts showing volume alone. This highlights the complementary nature of the VRSI and Volume Price Analysis. The example uses seven well-known stocks to illustrate the indicator’s application.

00:04:06 – 00:08:24

Key components of VRSI: fulcrum line and colour coding

00:04:06 – 00:05:24
The discussion begins with an introduction to an indicator, using Nike as an example, and emphasises four primary components. The first key element is the fulcrum line, which marks the transition point between bullish and bearish trends and serves as a critical level to watch.

00:04:47 – 00:06:04
The second component of the indicator involves colour coding to represent sentiment strength. Darker colours indicate strong bullish or bearish sentiment, while lighter colours represent weaker sentiment. This simple colour scheme helps visually differentiate levels of market sentiment.

00:05:25 – 00:06:44
The third element focuses on the height of the pressure bar, which is derived from volume price analysis. This height reflects the pressure applied to a trend, or the lack thereof, during congestion phases, providing insight into market dynamics.

00:06:05 – 00:07:23
The height of pressure bars is analysed similarly to volume-based price analysis techniques applied to candles and volume bars. This approach helps in understanding trend strength or weakness by observing the pressure being exerted on price movements.

00:06:44 – 00:07:50
Further analysis involves comparing the heights of pressure bars over time and benchmarking the current pressure against earlier phases. This comparative approach helps to determine whether pressure is increasing or decreasing, aiding in trend evaluation.

00:07:16 – 00:08:24
Overall, the indicator integrates the fulcrum line, colour-coded sentiment, and pressure bar height analysis to provide a comprehensive view of market trends. Watching color transitions and pressure bar height changes helps interpret market strength and potential shifts.

00:07:50 – 00:15:38

Analysing pressure bars: height and trend relation

00:07:50 – 00:10:42
The video explains how price bars relate to one another in sequence and their behaviour across multiple time frames. Using a specific stock chart example, it highlights a phase of low price pressure oscillating around a fulcrum, followed by the emergence of bullish sentiment. The discussion compares rising pressure bars to rising volume in volume price analysis (VPA), showing a steep upward trend with increasing momentum and pressure that aligns with rising price, indicating agreement between price and volume.

00:10:07 – 00:13:03
The segment focuses on a minor pullback within the bullish trend, noting that pressure bars have diminished slightly but have not returned to the fulcrum, indicating the pullback is not a full reversal. The pressure bar changes to a lighter blue, signalling easing bullish pressure, and the subsequent price bar shows a narrower spread with lower pressure. However, pressure quickly increases again, continuing the upward move. Another sequence of narrowing candles with declining pressure bars follows, showing a phase of measured bullish sentiment with a less steep trend angle.

00:12:22 – 00:15:38
This section discusses benchmarking pressure bars within the same session, emphasising that although pressure is present, its level is lower due to a flatter trend angle compared to the earlier steep rise. The height of pressure bars typically corresponds to candle spread and trend steepness: steeper trends show higher pressure bars, while flatter trends show lower ones. The video then describes a congestion phase at the top of the trend, characterised by narrow spreads and diminishing pressure bars returning to the fulcrum, indicating the trend is losing momentum and likely running out of strength.

00:15:05 – 00:20:42

Pressure bar behaviour in uptrends and downtrends

00:15:05 – 00:16:47
The market is currently in a congestion phase, indicating a loss of momentum after an initial surge. This phase shows that the upward pressure has dissipated, returning the market to a neutral fulcrum point. The analogy to volume in a price waterfall is introduced: rising volume accompanies descending prices, with widening or stable spreads. The pressure bars reflect this dynamic by increasing in height and changing colour, skipping a gradual transition and instead showing a rapid shift in sentiment.

00:16:13 – 00:17:55
A rapid and significant change in market sentiment is marked by an immediate colour shift in the pressure bars from light blue directly to brick red, bypassing the intermediate salmon pink. This indicates a swift move from bullish to bearish conditions. The subsequent pressure bars confirm a strong downward trend with increasing height and consistent colour, resembling a clean price waterfall without pullbacks, signalling a clear injection of selling pressure and momentum.

00:17:21 – 00:19:08
The increasing height of pressure bars during the downtrend signals growing momentum and confirms the strength of the bearish trend. This pattern is akin to rising volume in a falling market, which indicates the trend is supported by strong market activity. The consistent increase in pressure bars underscores the solid and sustainable nature of the downward movement.

00:18:31 – 00:20:42
Throughout this phase, the bearish sentiment remains intact as evidenced by pressure bars maintaining similar or increasing heights, with occasional shifts to salmon pink reflecting minor market rallies. These minor rallies are weak, indicated by wicks and a lack of strong supporting volume, suggesting market makers may be dumping into weakness. The overall analysis concludes that the downward trend continues robustly, with no significant reduction in selling pressure or momentum.

00:20:10 – 00:24:33

Using the VRSI to maintain confidence in trends

00:20:10 – 00:21:38
The speaker discusses the challenge of staying in a profitable trading trend after entering a position, particularly during congestion phases when stop-losses can protect trades. Trading from breakaways in congestion phases offers protection, but the main difficulty is holding the position to maximise profits. Emotional triggers often cause traders to close positions prematurely when the market pulls back, even though the trend may later resume strongly.

00:21:07 – 00:22:50
The emotional difficulty of maintaining a profitable trade is emphasised, as traders often close positions during pullbacks, missing out on further gains. Market makers exploit this fear and the fear of missing out, often leading traders to enter at the peak before a reversal or congestion. To address this, the speaker introduces an indicator designed to support the volume price analysis (VPA) methodology, helping traders remain confident and hold trends even during minor reversals.

00:22:14 – 00:24:33
The new indicator complements the VPA methodology by building additional confidence for traders to hold positions through minor reversals and avoid emotional reactions. It reinforces logical and analytical decision-making rather than fear-based responses. Using Nike as an example, the speaker highlights how the indicator clarifies the key points and analytical approach, ultimately helping traders maintain positions and manage their fear of losing profits more effectively.

00:23:52 – 00:31:28

Oracle example: interpreting pressure during session start

00:23:52 – 00:26:04
The segment introduces an Oracle stock example, highlighting bullish and bearish sentiment through pressure bars. The session starts at 2:30 UK time, coinciding with the US market opening, resulting in high volatility and volume. Initially, there is strong bullish pressure indicated by tall bars, though a single candle shows a slight reduction in bullish sentiment without a significant drop in the pressure bar height.

00:25:34 – 00:27:12
The example continues with pressure bars maintaining similar heights, indicating steady bullish momentum. A minor congestion phase follows, where pressure bars begin to decline, signalling a weakening trend. This trend weakening is compared to volume bars in traditional volume analysis, emphasising the importance of comparing the height and sequence of pressure bars to assess trend strength.

00:26:36 – 00:28:12
The bullish trend diminishes to zero, transitioning into a bearish phase. Falling prices coincide with rising pressure bars, turning from light to dark red, indicating strong bearish sentiment. Although prices are declining, the pressure bars remain elevated, suggesting sustained bearish strength in the stock.

00:28:13 – 00:30:28
The presenter explains how large volume or pressure bars early in the session can distort chart interpretation. By expanding the chart and removing the early, large bars, a clearer view of subsequent pressure bar heights is achieved. This adjustment reveals the true strength of pressure during the downtrend. The typical daily volume profile is also described, with high-volume spikes at the market open and close and lower volume during the trading day.

00:29:54 – 00:31:28
Expanding the chart to exclude early-session spikes provides a clearer perspective on pressure bar strength without distortion. This technique helps separate the influence of initial volume surges from later trading activity. The segment concludes with the presenter transitioning to a new example focusing on Disney stock.

00:30:56 – 00:35:25

Disney example: pressure changes in bullish and bearish phases

00:30:56 – 00:32:38
The segment explains the transition between market phases, starting with a bearish phase that quickly weakens, as indicated by falling pressure bars turning salmon pink. The trend then shifts sharply into a bullish phase, as pressure bars turn dark blue and rise steeply, reflecting strong momentum and increasing bullish sentiment.

00:32:04 – 00:33:45
This part covers a congestion phase in which the pressure bars’ heights decline rapidly as the trend loses strength, despite small momentum injections. The price action stagnates, and later the market reverses sharply from bullish to bearish, indicated by a colour change from light blue directly to brick red without an intermediate stage, with pressure bar heights remaining steady but showing downward momentum.

00:33:12 – 00:34:45
Throughout this phase, pressure bars maintain a consistent height and strong colour intensity, indicating steady bearish pressure. Minor fluctuations in colour reflect slight weakening, but overall strength remains. The segment highlights that a significant drop in the pressure bar height signals waning bearish momentum, which is observed near the end of the day, followed by a snap move back to bullish sentiment.

00:34:14 – 00:35:25
The focus shifts to JPMorgan Chase’s price action, illustrating a typical congestion phase. Initially, there is bullish momentum with a steep trend, but it quickly fades, signalling that the bullish trend is losing strength and the market is entering a phase of uncertainty or consolidation.

00:34:50 – 00:37:11

JP Morgan example: congestion and strong bearish pressure

00:34:50 – 00:37:11
The segment discusses observing a congestion phase characterised by low-pressure bars that eventually lead to a fulcrum point, followed by a strong bearish pressure reversal indicated by rising pressure bars. This pattern is likened to a volume price analysis (VPA) chart, where falling prices paired with rising volume confirm a strong trend supported by pressure. The persistence in bar height, despite a lighter colour tone, suggests ongoing trend strength until the bars begin to shrink, signalling a possible trend end. The speaker then introduces PepsiCo as an example to further illustrate how trends develop and how congestion phases appear using this indicator.

00:36:35 – 00:41:56

PepsiCo example: gentle bearish trend and momentum shifts

00:36:35 – 00:38:57
The segment explains a gradual downward price trend characterised by a gentle decline rather than a sharp drop, likened to a deflating balloon. The trend is bearish, confirmed by being below the fulcrum, and the pressure bars during this phase are relatively short, indicating moderate bearish momentum. Toward the end of the segment, momentum increases as pressure bars grow taller and spreads widen, signalling a stronger bearish push and setting the stage for a significant price collapse.

00:38:25 – 00:40:07
This part details the dramatic price collapse, accompanied by a sharp increase in pressure bar height and intensity, as highlighted by dark red and tall salmon-pink bars. The sustained height of these bars indicates no slowing of bearish momentum, suggesting traders should hold their positions rather than exit. The speaker emphasises the complementary nature of volume price analysis (VPA) alongside this indicator, reinforcing the strength of the combined approach to interpreting price action.

00:39:33 – 00:41:56
The discussion highlights how the indicator extends volume-price analysis, making it easier to understand and maintain positions. The example demonstrates that the steepness of a trend—whether bearish or bullish—is reflected in the pressure bar patterns, with gradual trends showing shorter bars and sudden rallies causing sharp pressure increases. The speaker transitions to introduce Exxon Mobil (XOM) as the next example to analyse, continuing the exploration of these principles.

00:41:21 – 00:45:22

Exxon Mobile example: waning momentum and bearish reversal

00:41:21 – 00:43:37
The price action segment analysis shows initial bullish momentum, marked by tall pressure bars over four candles. The stock then enters a mild bullish congestion phase, during which it struggles to advance, with narrow spreads and two-way price action indicating a lack of strong momentum. This leads to a slow, steady decline, resembling a downward spiral, as bullish pressure drains away and the price slides toward a fulcrum.

00:43:03 – 00:44:35
Following the decline, the stock rolls over into a bearish phase characterised by rising pressure despite falling prices. The analysis highlights a brief two-bar recovery with narrowing spreads, signalling a weak attempt to rally. This signals that bearish momentum is quickly restored, as indicated by the height of subsequent candles and continuing downward pressure, reinforcing the ineffectiveness of the minor rally attempt.

00:44:04 – 00:45:22
The speaker concludes by emphasising the importance of volume alongside price and spread indicators when assessing momentum and trend strength. The final example, featuring Wells Fargo (WFC), is introduced to illustrate a complete price cycle, tying together the principles demonstrated throughout the video for understanding bullish and bearish phases using the indicator.

00:44:43 – 00:48:33

Wells Fargo example: full cycle from bullish to bearish pressure

00:44:43 – 00:45:42
The segment explains bullish momentum initially showing rising pressure, which then diminishes and falls away rapidly. Despite intermittent pressure spikes, the trend stalls and begins to slide, with oscillation around a fulcrum point and very narrow price action indicating stagnation.

00:45:13 – 00:46:14
In congestion phases, narrow pressure bars oscillate around the fulcrum, indicating little trend movement. This is reinforced by the volume profile. The speaker introduces an almost perfect price waterfall pattern characterised by a sequence of eight consecutive pressure bars building on one another.

00:45:43 – 00:46:41
The price waterfall pattern is an ideal example of a falling price accompanied by rising volume, forming a smooth arc. The presenter notes that this pattern could be graphically demonstrated and is typical of volume rising as price declines.

00:46:12 – 00:47:13
As the price action phase ends, bearish pressure continues but shows signs of reversal. Pressure bars fall and price returns to the fulcrum point, suggesting a potential shift in trend direction is approaching.

00:46:42 – 00:47:45
At the close of the trading day, an injection of upward pressure often occurs, causing a reversal in the final bar. This phenomenon is common across many stocks during the last 5 to 15 minutes of the session due to increased volume entering at session start and close.

00:47:14 – 00:48:33
The video concludes by summarising the seven examples covered to explain the indicator’s concepts, its development, and how it integrates with the Cornerstone methodology of volume price analysis. The importance of using the indicator in combination with volume price analysis is emphasized, with further demonstrations promised in subsequent videos.

00:47:53 – 00:49:41

Summary and future VSI applications across time frames and markets

00:47:53 – 00:49:24
The speaker explains that they prefer to show a clean price chart with volume below, focusing initially on the volume relative strength indicator alone. Future videos will combine these elements and explore multiple time frames, different markets, and various examples, including stocks, ETFs, and indices. The indicator is versatile and applicable across all time frames, from seconds to monthly charts.

00:49:24 – 00:50:00
The volume relative strength indicator works consistently across asset types—stocks, crypto, indices, futures, commodities, or ETFs—because it is based on price and volume principles. The speaker concludes by expressing enthusiasm for upcoming content on the TradingView platform and the indicator itself.

00:49:27 – 00:49:41
The video ends with a brief closing and farewell accompanied by music.