An excellent trade on cable this morning as the pair broke away from congestion at the volume point of control on the 30-minute chart as the London forex session opened. The initial weakness was signaled with the effort to rise on good volume and closing with a deep wick to the upper body. This attempt to rise also hit strong resistance on the accumulation and distribution indicator denoted with the red dashed line. Heavy selling then followed with the wide spread down candle on high volume. Wyckoff’s third law of effort and result. Then comes the re-entry signal if you missed the breakaway. High volume on an effort to rise. The market makers are selling into weakness here and preparing for the next leg down. These are extremely strong signals and a terrific place to enter, in preparation for the continuation lower. And of course this is an anomaly – effort and result are in disagreement! And down we go, with cable now trading at 1.2283.
By Anna Coulling
You can discover more about the power of volume price analysis in The Complete Forex Trading Program.
anna, if you are scalping , you use instant market execution, if i want to use pending order like buy/sell limit or buy/sell stop… how you use vpa to make it, i like your book about vpa but i got confuse about pending order, where entry, where stop loss, where target profit..
regards
fran
HI Fran – many thanks and you would use these orders more where you are looking for breakout or breakaways from congestion regions or if you do not have the luxury of being at a screen all day – hope this helps Anna
hmm so vpa good for breakout trading from congestion area? not reversal trade or pull back trade
VPA works for everything:-) not sure where you got this idea from? regards Anna
pardon me from my ignorance, can you give example in your next forex article, how to place pending order like sell/buy limit or sell/buy stop, where the stop loss and where the target profit.. thank you for your knowledge
regards
fran
Hi Fran – all explained in the forex program – regards Anna