How to identify the energy in the trend and whether the momentum is rising or falling using volume – stay in the trend longer!

One of the biggest challenges in trading is knowing when a trend still has energy — and when the momentum is starting to fade. In this lesson, Anna Coulling shows you how to use volume price analysis (VPA) and the Quantum Volume Relative Strength Index (VRSI) indicator to measure trend strength and momentum direction. Spot rising or falling participation early, avoid getting shaken out prematurely, and stay in winning trends longer with confidence.

[00:21]

Introduction to Trading Platforms and Indicators

The presenter introduces two trading platforms: TradingView (used by Anna) and NinjaTrader (used by the presenter).
Focus is on live charts and specifically two areas:
The Volume Relative Strength Indicator (VRSI) on time-based charts.
Tick charts, which are less commonly used but favored by some traders for their unique benefits.
Purpose: To familiarize traders with tick charts and illustrate their application alongside volume-based indicators.
[00:58]

Current Promotion and Educational Programs

A 20% discount (LS20%) is available on educational programs via quantumradingeducation.com.
Programs offered:
Stock trading program
Forex program
Both programs emphasize foundational volume price analysis (VPA) methodology and include hundreds of video and PDF examples.
They also come bundled with various indicators.
Customized discount codes can be created for specific indicator-platform bundles upon emailing the team.
[01:58]

Current Market Environment and Mindset: Thinking Like a Market Maker

Recent market behavior includes:
Oil markets experiencing sharp rises and falls.
Indices showing a large overnight gap down (e.g., ENQ down about 300 points initially, then further declines before rallying).
Two key trading principles emphasized:
Gaps get filled.
Price action is non-linear and often manipulated by market makers.
Market makers and insiders aim to mislead retail traders, often triggering emotional reactions like FOMO (fear of missing out) to trap them on the wrong side of the market.
Therefore, traders must think like market makers, anticipating that market moves may be counterintuitive.
[04:02]

Volume Price Analysis and the Volume Relative Strength Indicator (VRSI)

The presenter uses multiple time frames on the MNQ (Micro NASDAQ futures, 1/10th standard size, ideal for beginners): 1-minute, 2-minute, and 3-minute charts.
Two rows of charts:
Top row uses the VRSI, a proprietary volume-based indicator measuring volume effort and energy relative to price bars.
Bottom row displays standard volume bars for comparison.
The VRSI visualizes volume energy through bar height and color coding (bright colors indicate high volume energy, duller colors indicate low energy).
The indicator helps interpret volume trends in real time, showing:
Increasing energy during strong trends (bars rising in height and bright colors).
Declining energy during pauses or consolidations (lower bars and faded colors).
The indicator is designed as a complementary tool to traditional volume price analysis, providing additional visual cues to assist with market interpretation.
[07:14]

Interpreting Volume and Energy in Trends and Consolidations

During strong uptrends, volume energy increases (seen as higher, bright bars on VRSI).
When volume energy declines, the trend is weakening or pausing.
Consolidation phases show:
Narrow candle spreads.
Low volume bars.
Corresponding low-energy colors on VRSI.
Volume price analysis confirms these phases by examining volume relative to price action (e.g., large wicks indicating buying pressure).
Volume and energy indicators mirror each other, reinforcing the validity of analysis.
[10:53]

Multi-Time Frame Analysis and Trend Confirmation

The 2-minute and 3-minute charts show similar patterns with slower time frames smoothing out noise.
The 3-minute chart still shows bullish momentum without crossing the VRSI fulcrum (zero line), indicating the primary trend remains intact.
Using multiple time frames is critical to:
Gain perspective on trend strength and direction.
Avoid premature exits based on short-term noise.
Traders should pick slower time frames relative to their trading style (e.g., a 1-minute scalper might use 3-5 minute charts as slower frames).
Volume price analysis can distinguish between:
Secondary trends (minor pullbacks within a primary trend, characterized by falling volume and narrowing spreads—no panic needed).
Primary trend reversals (widening spreads and rising volume indicating a true trend change).
[15:06]

Introduction to Tick Charts: Definition and Benefits

Tick charts are non-time-based charts that form candles based on a fixed number of price “ticks” (price changes), not elapsed time.
Example used: 233 ticks per candle, meaning a candle closes after 233 price changes, regardless of time taken.
Advantages of tick charts:
Reflect market activity and momentum more immediately than time-based charts.
During fast moves, candles appear rapidly, reflecting real-time momentum rather than waiting for a time interval to close.
Reveal the underlying “building blocks” of price moves that time charts smooth over.
[18:02]

Tick Speedometer Indicator: Visualizing Market Momentum and Energy

The Tick Speedometer is a color-coded tool (green, orange, red) showing current market energy or momentum.
Green and orange indicate higher momentum and activity; red indicates low momentum and congestion.
The tick speedometer provides:
A visual gauge of market energy similar to VRSI but focused on tick activity.
Helps traders identify periods of high momentum or congestion quickly.
It can be used alongside time-based charts or tick charts to enhance decision-making.
[20:07]

Optimizing Tick Chart Settings Using the Tick Speedometer

Different markets and instruments require different tick counts for optimal chart settings.
The tick speedometer helps identify the appropriate tick setting so traders do not have to guess or rely on external forums.
Example adjustments:
Changing from 233 ticks to 4181 ticks for better alignment with current market conditions.
Later adjusting to 1597 ticks as momentum and market speed fluctuate.
This dynamic adjustment ensures traders are “trading at the speed of the market,” enhancing responsiveness.
[21:07]

Trend Monitor Indicator: Staying in the Trend

The Trend Monitor indicator tracks whether the market is bullish, bearish, or in transition, using color cues:
Bright blue/red for strong trends.
Darker shades indicate congestion or weakening trends.
It works on all chart types and time frames, including tick charts.
Staying in the trend is emphasized as the most challenging part of trading.
The Trend Monitor combined with VRSI and tick speedometer helps confirm trend strength and avoid premature exits.
[22:34]

Volatility Indicator: Managing Risk and Avoiding Traps

The Volatility Indicator triggers in real time based on average true range (ATR).
It alerts traders to high volatility events before the candle closes, especially useful on longer time frames like 15 minutes.
Post-volatility, the market typically either enters congestion or reverses.
Market makers use volatility moves to trap traders into weak positions.
The recommended rule: wait until the ultimate high or low of the volatility range is broken before re-entering the market, ensuring safer trades.
[25:27]

Currency Dashboard Snapshot: Yen Activity

A brief update on the currency dashboard focusing on the Japanese Yen shows:
Yen buying activity has started to weaken, consistent with expectations.
As the Yen is a counter currency, buying or selling activity tends to move related pairs together.
The dashboard operates on a 1-minute timeframe, providing quick insights into currency sentiment shifts.
[26:58]

Closing Remarks and Future Sessions

The presenter plans to return, likely on Wednesday, depending on market conditions.
Future sessions will continue exploring tick charts, volume price analysis, and other trading lessons.
Final reminder: “Think like a market maker”, emphasizing the importance of mindset and understanding market dynamics to succeed.