In this video, we focus on the one-minute chart for a trade on gold, using the gold futures contract, and explain how to apply volume price analysis to help you get in and stay in the trade. Volume price analysis shows you where to get in, but more importantly, to help you stay in the trade and ride the trend.

00:21

Introduction to gold one minute chart analysis

00:21

The speaker is analyzing the one-minute chart for the gold April contract (GC). The cash markets have been open for about an hour and a half, starting at 2:30 PM UK time. The recording is intended to highlight Volume Price Analysis (VPA) lessons related to spotting market reversals and understanding the subsequent price action following a reversal.

00:57

High volume selling signals potential pause

00:57

The discussion focuses on the recent price action of gold, noting a significant price drop accompanied by the highest trading volume of the session, indicating heavy selling pressure. This is followed by a narrower candle with still above-average volume, suggesting potential weakening but also a possible pause or sideways consolidation. The speaker highlights the importance of observing candle spreads and volume to identify potential reversal points, noting that an anticipated bounce occurs but does not appear particularly strong at this stage.

02:03

Volume falling during attempted reversal

02:03

The segment analyzes a market reversal attempt characterized by declining volume, which is considered anomalous. It emphasizes the importance of examining both individual candles and volume bars, as well as groups of them. The market is trying to rally from a bearish trend, but volume is falling and spreads remain narrow. Comparing different candles shows weak volume support, indicating a fragile rally. This leads to a sideways movement with efforts to rally that ultimately fail, as evidenced by more wicks at the top than the bottom.

03:02

Two bar reversal patterns explained

03:02

The segment explains the concept of a two-bar reversal, illustrating both downside and upside reversals and how combining them shows a mixed price action with a small body and a significant upper wick, indicating weak strength. It highlights an effort to rally that fails due to declining volume, signaling a lack of buyer conviction. The discussion continues by comparing candles with varying volume levels, emphasizing how despite a previous candle having enormous volume, the subsequent similar-sized down candle indicates continued weakness.

04:06

Diminishing selling pressure insight

04:06

The speaker discusses comparing two similarly sized candles where the second has roughly half the volume of the first, indicating diminishing selling pressure despite similar price areas. This analysis highlights how volume anomalies provide insights into market behavior, focusing on either confirmation or disagreement between price and volume patterns.

05:14

Volume price anomaly indicating buying

05:14

The discussion focuses on analyzing a narrow spread candle with a lower wick and high volume, indicating buying pressure as the price remains steady despite selling pressure diminishing. By comparing recent volume bars and candle patterns, the speaker suggests a potential price reversal, supported by the smooth, consistent rallies observed in the last hour, contrasting with previous erratic movements.

06:22

Consistent trend after removing high volume bar

06:22

The speaker explains a technique for analyzing volume bars by removing very high volume bars that compress the rest of the data, providing a clearer view of market activity at the live edge. This adjustment reveals strong buying signals that were previously obscured by large volume bars, allowing for a more accurate interpretation of market strength.

07:20

The discussion focuses on interpreting volume trends during a consistent price movement with pauses and pullbacks. The key is to observe volume behavior under selling candles: falling price accompanied by falling volume suggests weak selling pressure rather than a true bearish reversal. The expected signs of a reversal—widening price spreads and rising volume—are absent, indicating that the selling is likely just profit-taking rather than a shift in trend.

08:20

Analyzing pullbacks and volume in uptrend

08:20

The speaker explains how to interpret red candles during an uptrend by examining spreads and volume to gauge selling pressure. Narrow spreads indicate that selling pressure is not increasing significantly, suggesting no panic to sell. Volume levels are also assessed, with average or low volume alongside narrow spreads acting as warning signals rather than strong sell indicators. The analysis continues with observing rising volume and widening spreads at higher levels, which are positive signs despite minor pullbacks, emphasizing the importance of monitoring subsequent candles for confirmation.

09:42

Volume price analysis identifies minor reversals

09:42

The speaker analyzes a secondary reversal within a primary bullish uptrend, focusing on volume and price spread characteristics. They note that volume is low and the candle spreads narrow, indicating the market is not yet ready to reverse into a bearish primary trend. Market makers appear to be maintaining price compression and sideways movement, suggesting potential reversal points and congestion phases that provide valuable insights for volume price analysis and trading opportunities.

11:19

Differentiating primary and secondary trends with VPA</h3.

11:19

The speaker explains how emotional reactions can cause traders to exit trades prematurely. They introduce volume price analysis as a method to discern whether a market movement is a genuine reversal from a primary bullish trend to bearish or just a minor secondary trend against the primary trend, suggesting the main trend will likely continue upward.

11:52

Summary and trading gold with dollar context

11:52

The speaker highlights a valuable example that combines many VBA lessons within a one-minute gold chart. They emphasize the importance of monitoring the dollar index or spot dollar prices alongside gold since gold and other commodities are quoted against the dollar. The segment concludes with thanks for watching and a promise of more videos to come.