Anna Coulling > Commodity Market Analysis > Gold > Trading gold, oil and copper using volume price analysis, volatility and the market strength indicator

In this in-depth session for trading gold, Anna breaks down practical strategies for reading real market behaviour in these key commodities. Learn how to interpret volume signals at critical price levels, measure volatility for better trade timing, and use the Market Strength Indicator to gauge momentum and confirm high-probability setups.

Trading gold, oil and copper using volume price analysis, volatility and the market strength indicator

00:21

Introduction to commodity trading workspace trading gold

00:21

The speaker discusses the current trading week, noting that it’s Tuesday and the US cash markets have been open for about an hour and 20 minutes. They introduce a custom workspace designed to provide quick insights into the commodities market, highlighting that it includes four charts, starting with gold (GC).

00:49

Overview of key commodity contracts

00:49

The speaker introduces various commodity contracts displayed on the screen, including the June contract, silver May contract, oil May contract, and copper HG. They highlight the key commodities being tracked and mention a market strength indicator on the left side, similar to one used in Quantum, which some viewers may recognize from the currency market.

01:20

Market strength indicator explained

01:20

The strength indicator provides a clear visual representation of market focus areas across different asset types such as commodities, stocks, and futures. The speaker demonstrates its use with three commodities: gold (GC), oil (CL), and copper, highlighting how the tool can handle multiple assets simultaneously to gauge market strength.

01:48

Uses of the market strength indicator

01:48

The indicator helps identify when a commodity or instrument is overbought or oversold, providing an opportunity to enter trends early. Specifically, the currency strength indicator highlights potential overbought and oversold conditions, signaling possible reversals between bearish and bullish trends, offering clear insight into market shifts.

02:20

Trend strength and congestion signals

02:20

The speaker explains how the strength of a trend is indicated by the steepness of a line on a chart. A steeper line reflects a stronger and quickly developing trend, while a flat or oscillating line signals no clear trend, indicating congestion. They also highlight the usefulness of setting up this indicator across multiple time frames, allowing traders, such as scalpers, to monitor trends starting at faster intervals to better inform their trading decisions.

03:19

Multiple timeframe analysis benefits

03:19

The segment explains the use of multiple time frames in trading, highlighting how analyzing slower time frames alongside faster ones provides a visual representation of market strength for the traded instrument. It emphasizes using these visuals similarly to charts to identify overbought or oversold conditions and to spot early entry opportunities as trends begin to peak and possibly reverse.

03:50

Volume Price Analysis (VPA) on gold

03:50

The video explains Volume Price Analysis (VPA) using a gold contract chart as an example, highlighting a ‘sumo candle’ where large volume results in little price movement, indicating a potential reversal. It emphasizes the importance of matching effort (volume) with results (price change) and shows how combining VPA with a market strength indicator can reinforce confidence in identifying trend reversals. Additionally, a silver market example demonstrates VPA through candles with large wicks and varying volume, illustrating another reversal scenario.

05:27

VPA and trend reversal on silver

05:27

The segment explains how selling pressure in a downtrend has been absorbed, leading to the start of an uptrend characterized by rising volume. This volume price analysis (VPA) indicates buying activity from major market players, causing a mini trend reversal and a pause in the bearish trend, presenting an early entry opportunity. The discussion then shifts to oil prices, noting their oscillations due to broader market factors, and introduces another classic market indicator without detailed explanation.

06:26

Volatility indicator and trading signals

06:26

The volatility indicator uses purple dots to signal volatility in a given timeframe for an instrument, indicating either congestion or a full reversal. High volume accompanying this signal suggests active participation by market makers and big operators, which can halt price movement. The OP indicator is valuable as it warns traders of potential congestion or reversal, helping them decide whether to close or partially close positions to protect profits.

07:25

When volatility is detected, it is advisable to take profits off the table and wait for the market to clear. This clearing is gauged by whether the price breaks beyond the ultimate high or low levels, indicating the end of the volatility trap. The volatility indicator works across timeframes and is particularly useful on slower timeframes, as it triggers before candle closure, providing early warning of volatility and allowing traders to act promptly.

08:27

The indicator offers an advanced warning of potential traps like congestion or reversals without needing to wait for candle closure, especially helpful on 15-minute or slower timeframes. Early detection in the initial minutes of a candle allows traders to pay attention, make timely decisions, and close positions if profits are sufficient to avoid losses.

08:53

Volatility traps and trade management

08:53

The speaker discusses volatility in the copper market, highlighting a volatility trap where the price sharply rose before quickly falling back. This movement attracted many traders who bought in at the peak, only to see the price drop. The increased volume suggests that market makers are selling into the weakness, pushing the price up to trap traders before reversing. The observed pattern indicates either ongoing congestion or a full bearish reversal, with current evidence pointing to a continuation of the previous downward trend. The key takeaway is to recognize these volatility triggers and adjust trading strategies accordingly.

09:47

Copper volatility and market makers’ actions

09:47

The segment explains volume price analysis, emphasizing that huge volume can indicate weakness rather than strength. It describes how market makers and big operators sell into weakness to prepare for further market declines. The discussion then shifts to gold, highlighting a strong downward trend supported by volume patterns.

10:15

Gold trap moves and price trends

10:15

The segment discusses a clear trap move characterized by very low volume, warning traders against assuming the bottom has been reached. It highlights a continuing downward price trend with a potential minor buying interest emerging. The speaker advises monitoring silver alongside gold to get a complete view, noting a volatility trigger indicated by increasing volume before the candle closes, suggesting possible congestion or a reversal ahead.

11:14

Correlation of silver and gold signals

11:14

The speaker discusses the lack of volatility in gold compared to a volatility signal in silver, which aids in trading gold charts. They note significant volume activity, suggesting potential congestion or a possible full bone reversal soon. The video concludes with the speaker expressing hope that viewers enjoyed this unique presentation and hints at more content to come.
By Anna Coulling – creator of volume price analysis

By Anna Coulling – creator of volume price analysis