Anna Coulling > Commodity Market Analysis > Gold > A tutorial on trading gold – staying in the trend using VPA on the one minute gold chart using VPA

Want to stop getting chopped up in gold and start staying in the trend, trading gold like the pros?In this video, I walk you through exactly how I use Volume Price Analysis (VPA) on the 1-minute Gold chart to:

1. Spot high-probability trend continuations
2. Filter out weak or fake moves
3. Time entries and exits with much greater clarity

Whether you’re a scalper or intraday trader, this approach can seriously tighten up your Gold trading. Learn how to use VPA in your trading. Watch the full tutorial below

A tutorial on trading gold – staying in the trend using VPA on the one minute gold chart using VPA

00:22

Introduction to the commodities workspace trading gold

00:22

The speaker introduces a commodities workspace featuring four different commodities displayed on one-minute charts. Gold is shown in the top left, silver in the top right, oil in the bottom left, and copper (the HD contract) in the bottom right. Most contracts are for May, except gold, which is on the June contract.

00:53

Market strength indicator overview for trading gold

00:53

The speaker introduces the market strength indicator from Quantum Trading, which is similar to their currency strength indicator but applicable to various instruments such as futures, indices, stocks, ETFs, and commodities. The indicator can be customized for simplicity or complexity. It can be used across multiple time frames to analyze trend development, much like the currency strength indicator used in forex. The speaker demonstrates a simple setup for this video, but in practice, traders might use several indicators spanning different time horizons tailored to their trading style, such as scalping with 1, 2, or 3-minute intervals.

02:01

Using an indicator for scalping trades

02:01

The segment explains how to use a visual indicator to assess whether commodities like oil, silver, copper, and gold are overbought or oversold on short time frames. It highlights the strategy of scalping by identifying extremes to either jump into a trend early for maximum profit or wait until the trend develops. The discussion includes the benefits of entering once a trend is underway, such as tighter stop losses, with examples showing gold and other metals potentially reversing or continuing their trends.

03:33

Trend momentum vs reversals trading gold

03:33

The speaker explains the difference between trends with momentum and potential reversals, emphasizing patience when waiting for price reversals, as prices may linger before changing direction. Using oil as an example, the price stayed steady before declining, illustrating that price movements do not always follow a smooth path to tops or bottoms. Trends often pause or kink before continuing, as seen in a developing oil trend linked to analysis using volume price analysis (VPA) and volatility indicators.

04:29

Volume price analysis basics

04:29

The segment explains the concept of Volume Price Analysis (VPA), focusing on whether the volume associated with a price candle aligns with the price action or if it shows an anomaly. When price and volume agree, the trend is confirmed and trading can continue confidently. However, anomalies indicate that something unusual has occurred. The discussion then introduces examples of such anomalies, starting with a clear trend development marked by a volatility candle, which can signal congestion or a potential reversal.

05:23

Identifying anomalies and traps

05:23

The segment discusses unusual volume and price action in trading candles, highlighting a suspicious wide candle with low volume and a red candle with higher volume but a smaller spread. This anomaly suggests a potential trap, confirmed by the following candle showing very high volume with a narrower spread, indicating significant activity by insiders or large operators.

06:23

The analysis continues with the appearance of a hammer candle following the trap, characterized by good volume and a deep wick regardless of candle color. This formation signals a potential reversal in trend despite falling volume and narrow spreads afterward. The explanation emphasizes that wick depth and volume are more important than candle body color when interpreting volume price analysis (VPA).

07:19

Signs of market weakness and selling

07:19

The segment analyses volume and price action using volatility candles to identify potential market weakness. Despite high volume and upward price movement, the candles fail to close near their highs, indicating selling pressure. This discrepancy between volume and price suggests that sellers are overpowering buyers, causing the price to fall back and signaling expected market weakness.

08:18

The discussion continues on how selling pressure from big operators is dominating buying, pushing prices downward to about halfway levels. Traders using Volume Price Analysis (VPA) anticipate a pause or possible reversal rather than a continued upward surge. The focus is on observing upcoming candle behavior to confirm these expectations.

09:13

The market exhibits congestion as expected, with some encouraging signs of buying support despite red candles. A red candle with a wide body typical of a strong reversal is not seen; instead, volume decreases during subsequent red candles. This suggests that although selling is present, it is losing strength, which complicates the interpretation of a clear downward reversal.

10:10

The volume associated with red selling candles diminishes, indicating that the selling pressure may not be sufficient to confirm a primary trend reversal from uptrend to downtrend. This anomaly suggests that the expected strong reversal to a lower primary trend is not materializing, and the market may instead be in a different phase than a straightforward decline.

10:40

Primary vs secondary trends explained

10:40

The segment explains the concept of a secondary pullback or secondary reversal, as described by Wyoff, where a primary trend temporarily pauses or reverses into a secondary trend before continuing. Traders must interpret these phases carefully to remain in trades during inevitable price fluctuations, as trends never move in straight lines but instead include pauses and pullbacks. The discussion highlights volume patterns during these congestion phases, noting that falling volume on both red and blue candlesticks signals a lack of panic selling. Traders are advised to stay patient and alert, watching for price movements beyond specific levels to confirm continuation of the primary trend and maintain their positions.

12:44

Using faster charts for deeper analysis

12:44

The speaker explains the strategy of switching to faster time frames, such as a 30-second chart, to gain a deeper insight into market activity when concerned about the current time horizon. The 30-second chart expands the candle data, allowing a more detailed view. During the explanation, a significant volume spike and a volatility trigger occur, indicating movement beyond the average true range. This volatility indicator is valuable because it activates in real time before the candle closes, offering early warning signals, especially important on longer time frames like a 5-minute chart. The video concludes with an invitation to watch more content in the future.
By Anna Coulling – creator of volume price analysis

By Anna Coulling – creator of volume price analysis