https://www.youtube.com/watch?v=9cXJ892ZHv4
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Richard Wyckoff’s Three Laws Explained
Richard Wyckoff was a pioneering trader in the early 20th century. He studied markets through "tape reading"—real-time price and volume data. From this, he distilled three fundamental laws. These explain how markets move and why. They remain the foundation of modern Volume Price Analysis (VPA). Understanding them helps spot professional intent and high-probability trades.
1. The Law of Supply and Demand
Price moves based on the balance between buyers (demand) and sellers (supply).
Demand exceeds supply → price rises.
Supply exceeds demand → price falls.
Balance → price ranges sideways.
Volume confirms this. High volume on up moves shows strong demand. Low volume rallies signal weak demand—potential reversal.
2. The Law...
https://youtu.be/4jPioInlNyg
If you're looking for a volatile currency pair to trade look no further than the GBP/JPY as I take a look at where it might be heading next.
The "dragon" in trading circles (a fun metaphor for powerful, trending market momentum—often fierce and unpredictable like a Chinese dragon) has been coiling and breathing fire lately. But where is it heading next as of January 13, 2026?
Current Market Snapshot
Global equities are mixed but leaning bullish early 2026. S&P 500 and Nasdaq hover near records on AI/tech optimism, but with caution from Fed watch and geopolitical noise. Forex sees USD softening (DXY ~102-103), commodity currencies (AUD, CAD) gaining on risk-on flows, and safe-havens (JPY, CHF) quiet.
The dragon looks headed higher in risk assets short-term—continued equity grind up, USD weakness supporting commodities/gold. But coiled for potential fire-breath downside if inflation data surprises hot or risk-off triggers hit.
Volume Price Analysis (VPA) View
VPA shows sustained buying in indices—rising prices with steady (not climactic) volume = conviction,...
Trading reversals require your stop loss to be set wider to allow for the congestion phase to develop before the trend begins. So this is not for everyone, but if you have the patience, the pay off is greater as you are getting into the trend before it begins so the payout is greater. It's all about risk and returns.
https://youtu.be/AQqakclQlq4...
https://youtu.be/jXM8xgVjiB8
Mean Reversion in Currency Markets Explained
Mean reversion is a key concept in forex trading. It states that currency prices tend to return to their historical average (or "mean") after significant deviations. Extremes are temporary. Markets correct toward equilibrium. This makes mean reversion powerful in currencies—especially in ranging conditions.
Why Mean Reversion Works in Forex
Forex is relational. Currencies trade in pairs. Balance pulls prices back. No single currency dominates forever. Central banks and arbitrage maintain fair value. Most pairs spend ~70% of time ranging, not trending. This creates frequent reversion opportunities.
Volume price analysis (VPA) spots them—low volume at extremes signals fading conviction. High opposing volume confirms the turn.
How Mean Reversion Manifests
Overbought/Oversold: Currency too strong (top rankings)—sellers emerge. Price corrects lower.
Oversold: Too weak—buyers step in. Rally follows.
Relational Balance: USD extreme vs EUR—pair reverts as fundamentals align.
Quantum currency strength indicator ranks extremes live. This flags reversion setups early.
Trading Mean Reversion with VPA
Strategies:
Fade Extremes: Sell overbought, buy oversold on volume rejection.
...
https://www.youtube.com/watch?v=QfAO71OA89I
Candles and candle patterns are one of the five pillars of volume price analysis and together with a currency dashboard can help to identify and validate reversal trading opportunities.
...
https://www.youtube.com/watch?v=0yp5qtDMiKI
Waiting for Reversal Signals on EUR/NZD
EUR/NZD shows signs of potential reversal. The pair has trended steadily. Now extremes appear. Traders wait patiently for confirmation. Volume price analysis (VPA) guides the timing.
Patience is the key when waiting for reversal signals, particularly after a sharp move lower. In this excerpt from this morning's forex webinar the eur/nzd pair entered into consolidation trading between two key levels.
Key VPA Reversal Signals
Look for divergence. Price makes new extremes on low volume. This warns of exhaustion. High volume at turning points signals stopping action. Quantum Accumulation/Distribution indicator highlights weakening momentum.
Relational Context with Quantum Tools
The currency strength indicator ranks EUR and NZD. Overstretched rankings hint at turns. Currency matrix shows cross-pair dynamics. Quantum tools on MT5 or NinjaTrader make these visible quickly. Anna Coulling's VPA approach waits for volume support.
Practical Waiting Strategy
Avoid forcing trades. Wait for candle close with volume confirmation. High volume reversal candles offer entries. Low volume extremes often trap early movers.
EUR/NZD reversal signals build...
https://www.youtube.com/watch?v=58aiMiJrZyE
In this section of a recent webinar, we highlight the importance of the R4 Camarilla level and how this level can give us an insight into possible reversals....
https://www.youtube.com/watch?v=677FopMyFaA
Some reversal examples based on volume price analysis as well as the volatility trap which is usually triggered following a significant news release.
...
https://www.youtube.com/watch?v=azf7b6ror6c&t=2s
Market reversals happen for many reasons including fundamental news or a change in sentiment. However, one reversal that consistently happens in the forex market is designed to trap traders on the wrong side of the market. It happens at session cross overs and in particular at the London open. This section from a recent webinar explains.
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