Trading Volatility at the Start of the US Session
Trading volatility at the start of the US session offers exciting opportunities. The overlap with New York brings high liquidity. Price moves accelerate. This creates sharp trends or reversals. Traders who prepare can capitalize. At the start of the US trading session two things happen at the same time. First comes the surge in volume as the cash markets open alongside Globex and second this is always accompanied with volatility. Here we explain how to trade volatility at these times.
Why Volatility Spikes at US Open
The US session overlaps with London close. News releases and institutional flows drive action. Volume surges early. Volume price analysis (VPA) reveals true intent—high volume on moves shows conviction. Low volume spikes warn of traps.
Key VPA Signals in Volatile Opens
Look for widening candles with rising volume. This confirms momentum. Divergence—price new highs on low volume—signals exhaustion. Quantum volatility indicator on MT5 or NinjaTrader highlights these surges. Trend Monitor...
https://youtu.be/IZmiweJ8Hgk
Why We Have Seen Divergence in the US Indices and More Trading Lessons Using Volume
Divergence in US indices has caught attention recently. Major benchmarks move differently. Nasdaq surges on tech strength. Dow lags with industrial weakness. S&P 500 sits in between. This relational split reveals underlying market dynamics. Over the last few months, there has been a considerable divergence between the Nasdaq 100 and the two primary indices of the Dow Jones and the S&P 500. There is a reason for this which I explain before David takes over with more volume lessons on gold and oil as markets wait for the FOMC release due later.
What Causes Index Divergence
Divergence often signals shifting sentiment. Sector rotation plays a role—money flows from one group to another. Economic data or earnings drive it. Volume price analysis (VPA) uncovers the truth. High volume in leading indices shows conviction. Low volume in laggards warns of exhaustion.
VPA Lessons from Divergence
Volume price analysis teaches key lessons here....
The renko optimizer indicator for NinjaTrader is a powerful indicator in it's own right, delivering the optimatal brick size for all markets and instruments. But when used in this way, it will take your trading to a new level. In the video we explain how.
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Trading can trigger many emotions including the fear of missing a trade and the fear of a loss. However, with volume price analysis and the Quantum tools and indicators will help traders and investors manage these fears as the methodology and tools anticipate where the market is going next....
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GBP/USD Potential Reversal: Classic VPA Cycle in Action
GBP/USD shows a classic volume price analysis (VPA) cycle. It starts with congestion. Price ranges tightly. Volume stays low. This builds pressure.
This is a perfect example of Cable in a congestion, followed by the breakaway,then comes the trend and now possibly a reversal.
Breakaway and Trend Phase
A breakaway follows. Price escapes congestion on high volume. This confirms conviction. Trend develops steadily. Up candles widen with rising volume. Quantum Trend Monitor stays aligned, supporting longs.
Signs of Potential Reversal
Now, reversal signals emerge. Price hits highs on falling volume—divergence warns of weakness. Distribution appears. Quantum Accumulation/Distribution indicator turns negative. A bearish candle on volume spike suggests exhaustion.
Trading Lessons from This Cycle
This GBP/USD example teaches patience. Congestion builds setups. Breakaways with volume validate trends. Reversals need confirmation—wait for divergence. Anna Coulling's VPA methodology spots these phases early. Quantum tools on MT5 or NinjaTrader make them visual.
Watch GBP/USD closely. Potential reversal could shift momentum. Use VPA with Quantum indicators...
https://youtu.be/ABAGHm4-Yi0
What Relational Analysis Reveals About Sentiment and Risk
Relational analysis is a core part of modern forex trading. It examines how currencies perform against each other. This reveals hidden sentiment and risk appetite. Single-pair views miss the big picture. Relational tools show the full market mood. Sentiment in the financial markets is expressed as risk-on or risk-off, and following the release of Chinese data overnight, market reaction could best be described as mixed with not universal agreement in risk asset classes.
Sentiment Signals from Relational Strength
Relational analysis highlights risk-on or risk-off sentiment. Strong commodity currencies like AUD or NZD signal risk-on. Investors favor growth assets. Weak safe-havens like JPY or CHF confirm this. Reverse for risk-off—yen and Swiss franc lead rankings.
Risk Appetite and Currency Flows
High relational extremes reveal risk levels. AUD/JPY rising shows appetite for risk. Falling pair warns of caution. Volume price analysis (VPA) confirms—high volume on moves validates sentiment. Quantum currency matrix and strength indicator on MT5 or NinjaTrader make...
The emini micros from the CME are new small size index futures, which are great for those getting started day trading the emini index markets.
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Learn How to Read the Economic Data and What It Reveals in the Cycle
Economic data releases drive market moves. Traders must learn to read them correctly. Data reveals where we are in the economic cycle. This guides sentiment and trading decisions. Volume price analysis (VPA) adds confirmation. Learn how to read the economic data and what it reveals in the cycle
Key Economic Indicators and Cycle Phases
The cycle has four phases: recovery, expansion, slowdown, recession. Leading indicators like PMI signal early turns. Coincident indicators (GDP, employment) show current state. Lagging indicators (unemployment rate) confirm trends.
Strong data (high PMI, low unemployment) points to expansion. Weak data signals slowdown. Central bank responses follow—rate hikes in expansion, cuts in recession.
How Data Reveals Cycle Position
Positive surprises boost risk-on sentiment. Commodity currencies (AUD, CAD) strengthen. Negative surprises favor safe-havens (JPY, CHF). Volume price analysis confirms reactions—high volume on moves shows conviction.
Trading with Data and VPA
Wait for data release. Watch initial reaction. Use VPA for confirmation—high volume...
https://www.youtube.com/watch?v=MkThi9XkRIE
Combining time charts with a non time based charts such as a Renko can give day traders a huge advantage as they not only highlight smart entries and exits but will also help stay in a trend. The Renko Optimizer takes trading with a Renko chart one step further in that it automatically calculates the optimum pip value for different time frames....
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Even as a day trader it's important not to underestimate the price action and volume on the daily time frame particularly from a volume price analysis perspective when increased buying and selling does not often play out immediately. The NQ was a great example with major buying coming in a few days before a significant move in the index.
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