Volume price analysis and the British pound

Volume price analysis and the British pound

by Quantum Trading Comment Closed
Another interesting session with the British pound once again in focus for several reasons. First of course Brexit continues to dominate the news, and whenever an item of fundamental news is released it is the context of the bigger picture, and therefore has relatively little impact. Second, a volume price analysis anomaly was clearly in evidence on the daily chart for the GBP/AUD. Here we saw a wide spread up candle, yet the associated volume was not in agreement with such a strong move. Clearly the market makers were not participating in the move higher, with the pair duly rolling over a few days later to deliver a clear trading opportunity to the short side. Finally we focused on the new release of retail sales to demonstrate volume price analysis in action on the 1 minute timeframe, and moreover the trap moves initiated on any such release, with the volatility indicator revealing its true power. https://youtu.be/bb_ENLt0X8o...
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Potential reversals now ahead after the storm of last week!

by Quantum Trading Comment Closed
https://youtu.be/cfzpUT701Dk Potential Reversals Now Ahead After the Storm of Last Week! The forex market endured a storm of volatility last week. Sharp moves created exhaustion. Now, potential reversals loom. Traders watch for turning points. Volume price analysis (VPA) spots them early. In this morning's forex session, we looked at some of the interesting setups now on the horizon using the longer-term perspective of the currency heatmap. The currency heatmap can be viewed in much the same way as the currency strength indicator. For the heatmap, we consider pairs rather than currencies, and a great way to use the indicator is to look for the extremes as potential reversals. With the yen now weakening following the flash crash and risk sentiment shifting, these now look like good prospects for the longer term. At the other end of the ladder, we have several euro cross pairs to consider. And all, of course, confirmed with volume price analysis and the Quantum Trading tools and indicators for MT4/5...
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The forex libary for volume price analysis

The forex libary for volume price analysis

by Quantum Trading Comment Closed
If you’re serious about succeeding as a forex trader, this box set if for you. It’s the complete forex trading library which explains all you need to know. Four great books in one powerful package and for just $9.99 - available on Amazon now! https://youtu.be/boBwBtRowOQ Grab your copy by clicking the link now...
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The FED, and the Quantum Trading indicators for short and longer term trading

The FED, and the Quantum Trading indicators for short and longer term trading

by Quantum Trading Comment Closed
In this session, we stressed once again the importance of distinguishing between the signal and the noise from the FED ahead of the FOMC minutes later. Once again we have seen how the Federal Reserve is the most powerful central bank in the world and how its words and actions impact all markets and the global economy. We then focused on the pound in a variety of timeframes, with some great volume price anlaysis lessons in several pairs. Finally we looked at the currency heatmap and the extremes for some longer term trading opportunities. https://youtu.be/6PuiHUClDhM...
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Great forex session with the GBP/AUD, the GBP/JPY and the AUD/JPY all in focus

Great forex session with the GBP/AUD, the GBP/JPY and the AUD/JPY all in focus

by Quantum Trading Comment Closed
A great forex session this morning in the live webinar with David and myself, and one where we were spoilt for choice in terms of trading lessons and also trading opportunities. The pairs we chose were the GBP/AUD on the MT5 platform and the AUD/JPY on the NinjaTrader platform, before moving to look at the GBP/JPY later in the webinar and of course all analysed through the prism of volume price analysis and the Quantum Trading tools and indicators. For the GBP/AUD is was a case of further heavy selling in this pair and reflected in the time based charts supported by the MT5 renko chart. As always the currency strength indicator signalled the strength of the move and again using multiple timeframes giving the clear signals we need to select the currency or currency pair for further analysis. One of the keys to success is in applying volume price analysis which then helps to identify whether a reversal is...
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Volatility indicator detects and protects

Volatility indicator detects and protects

by Quantum Trading Comment Closed
Volatility Indicator Detects and Protects The volatility indicator detects market movement early. It measures price swings in real time. High readings signal increased activity. Low readings show calm periods. This helps traders prepare for changes. A great example of the Quantum volatility indicator in action yesterday in the eur/aud currency pair. The indicator was triggered on unexpected comments from ECB member Nowotny - noted hawk - who suggested the ECB's current program of QE was likely to come to an end sooner rather than later. Ahead of these comments eur/aud was looking to continue its bearish tone. However, on the comments hitting the newswires sentiment in the euro changed and euro pairs soared as volatility hit the market. This indicator triggers in real time so, as traders, we know instantly something is afoot. What then generally happens is that on completion of the volatility candle, price action retraces to within the spread of the candle as the sting is taken out of the move....
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Classic VPA on GBP/JPY

by Quantum Trading Comment Closed
Classic VPA on GBP/JPY GBP/JPY often delivers classic volume price analysis (VPA) signals. This yen cross is volatile. It reacts strongly to risk sentiment. High volume on moves shows conviction. Low volume warns of traps. A classic VPA on 5 min chart of GBP/JPY on the release of NFP today. Huge down candle on light volume, before we saw a switch back higher as market absorbed poor numbers, and likelihood of a September FED hike in interest rates disappear faster than snow in July. The trigger of the volatility indicator (purple arrows) also signaled high probability of a re-trace to within spread of the down candle. Volume simply validated this point. Indeed, FED Funds Rate now pricing in a 44% probability of a rise in rates in December, which is a re-run of last year's interest rate saga. As of yesterday FED funds showing a 30% probability of a rise in September Spotting Accumulation and Distribution Look for accumulation on down candles with rising volume. This...
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Euro delivers in London forex session

by Quantum Trading Comment Closed
Which Pairs Should I Focus On as a Forex Beginner and Why? As a forex beginner, the market can feel overwhelming with dozens of pairs. But starting smart is key. Focus on the major pairs. These involve the US dollar (USD) and another strong currency. They offer the best conditions for learning. Here's why—and which to prioritize. The Major Pairs: Your Starting Point The seven majors: EUR/USD (Eurodollar): Most traded. Tightest spreads. Reacts to ECB/Fed policy. GBP/USD (Cable): Volatile but liquid. UK data drives swings. USD/JPY: Yen safe-haven flows. Low spreads. USD/CHF: Swiss stability vs USD. AUD/USD: Commodity-linked Aussie. USD/CAD: Oil-driven CAD. NZD/USD: Kiwi, similar to AUD. These account for ~85% of forex volume. Why Majors Are Best for Beginners High Liquidity: Fast execution. Minimal slippage—even in news. Tight Spreads: Low costs (0.0-1 pip on ECN). Profits easier to keep. Reliable Volume: Tick data consistent—perfect for volume price analysis (VPA). High volume moves show real conviction. Predictable Behavior: Clear trends or ranges. Easier to learn...
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Cable waits on PMI

by Quantum Trading Comment Closed
Understanding PMI Data: What It Is, Key Global Releases, and Why Chinese PMI Matters Most Purchasing Managers' Index (PMI) data is one of the most watched economic indicators in forex and global markets. It's a leading gauge of business health. Traders use it for clues on growth, inflation, and central bank policy. Volume price analysis (VPA) confirms reactions—high volume on moves post-PMI shows conviction. New trading month sees the usual crop of PMI releases. China has already reported today we have the numbers from Italy, Spain and France as well as the UK. Although UK economy is predominantly services based, the manufacturing number has been managing to hold above the key 50 level. From a technical perspective so far best move for GBP has been against the AUD with cable confined to a relatively tight range. However, we should start to see some movement once the PMI number has been released, and the new week gets under way. Interestingly cable on the daily chart...
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