This video focuses on the price action in the London session for the NQ Emini futures contract and the one-minute timeframe. In it, we explain how volume price analysis helps you to stay in the primary trend when a secondary trend develops, and this methodology will help you to recognise what is likely to happen next, thus avoiding the emotional trap of exiting too early.

00:22

Market setup and instruments overview – staying in the primary trend

00:22

The speaker describes the current time as 10:30 AM London time, noting that futures have been trading since the London open for about 2.5 hours. They introduce their trading workspace on Ninja Trader, explaining their setup with three indices: YM, NQ, and ES. The workspace displays 1-minute charts on the top line and 3-minute charts on the bottom line, with volume as the only indicator used, and focuses on staying in the primary trend.

00:48

Accumulation distribution indicator explained

00:48

The accumulation distribution indicator is explained as a tool that automatically identifies significant price levels, showing areas of strong or weak activity that may act as support or resistance. The focus is on the ENQ indicator, though others could be used. The speaker highlights recent excellent price action and volume price analysis (VPA) lessons, describing a straightforward trade that benefits from understanding secondary trends in relation to primary trends.

01:22

Understanding trends and trade insights

01:22

Staying in the primary trend with no emotion is hard. This segment explains the reasons behind maintaining a trading trend successfully to maximize profitability instead of exiting prematurely due to emotional reactions during pullbacks. It focuses on a primary trend observed about an hour after market opening, highlighting a strong downward trend with multiple opportunities for continuation trades.

02:00

Primary downtrend and trend continuation signs

02:00

The speaker explains the chart setup, highlighting a clear buy signal at the bottom that indicates a reversal to the upside, currently in a congestion phase. They describe how the accumulation distribution indicator helps identify the ceiling and floor levels within this congestion. The focus then shifts to the morning’s downward trend on the one-minute chart, noting the importance of timing for entry.

02:31

Signs of rally effort and volume analysis

02:31

The segment explains the signs indicating a continuing downward market trend despite initial attempts to rally. It highlights the presence of upper wicks on candles, rising volume indicating selling pressure, and a pause in selling shown by price compression on the third candle. The market makers appear to be stepping in to momentarily halt the decline, suggesting a potential secondary reversal against the primary downtrend, but the final outcome depends on subsequent candles.

03:29

Secondary reversal against primary trend

03:29

The segment explains a price movement characterized by a narrow candle with half the size of the previous and double the volume, indicating buying interest. However, this buying does not reverse the downtrend because volume falls, signaling a secondary reversal that lacks strength. For a true primary reversal from a downtrend to an uptrend, volume should increase, which is not happening here. The price then enters congestion and breaks down further with significant volume and price weakness, marked by deep wicks and falling volume at pause points, indicating continued bearish momentum.

04:22

Pause points and bearish engulfing candle

04:22

The segment explains that a current market trend has temporarily paused, signaling a potential rally. During the rally, there are three upward bars with rising volume. However, despite the increased volume, the price spread remains the same, indicating stagnation. This situation suggests an impending reversal, confirmed by the appearance of a bearish engulfing red candle.

04:49

Stopping volume and trend reversal signals

04:49

The segment explains the concept of stopping volume, where a large influx of volume signals market makers and big operators entering to halt a price movement. This creates a pause and sideways trading before a true reversal in the primary trend occurs, shifting from a downtrend to an uptrend. The volume price analysis (VPA) technique helps distinguish between secondary efforts and a genuine primary trend reversal, highlighting the importance of stopping volume as a signal of change in market direction.

05:51

Volume changes indicating selling pressure

05:51

The segment explains a reversal pattern observed on a candle where price action occurs in the same area as an earlier high-volume zone, but now with significantly lower volume. This indicates that selling pressure is diminishing as it has been absorbed by the market. The expectation is for a reversal, though its extent is uncertain. Traders who were short would likely close their positions and wait for further price developments. The segment also notes a recent surge in volume at the market’s live edge, identifying it as a trap move.

06:51

Trap move and weak price action analysis

06:51

The speaker analyzes recent market volume and price action, noting that despite significant trading effort indicated by large green candles, the price has not moved substantially. This disparity suggests market weakness, implying that the current trend may continue downward or experience further weakness.

07:19

Accumulation distribution and breakout setup

07:19

The bullish trend has lost momentum, and the accumulation distribution indicator is now the key factor to watch. This indicator’s strength is shown by numerical values and the thickness of lines, which increase as levels are tested more frequently. A significant breakout trade from this region is anticipated. Patience is advised to wait for a breakout confirmed by strong volume and a clean candle without major wicks, indicating a solid move from the trading range. Similar patterns are observed in other indices.

08:16

Summary and closing remarks

08:16

The speaker concludes with a positive remark about the example discussed earlier, expresses hope that the audience enjoyed the session, and signs off with thanks and a goodbye.