In this video, Anna focuses on the five-minute chart for the MNQ as trading gets underway following the outbreak of war in the Middle East. Now we have to think like a market maker and volume price analysis gives us this insight in this volume price analysis lesson with Anna.

00:22

Introduction and market overview

00:22

The live stream begins by addressing the significant market reactions on the first full working day following major events in the Middle East over the weekend. The discussion focuses on various markets including futures, commodities, and the US dollar. The hosts consider how markets may have anticipated or been surprised by these developments, referencing prediction markets like the Polymarket that had speculated on a relevant date. They plan to analyse current price action and chart movements, with co-host David joining the conversation. The session will be recorded, uploaded to YouTube, and segmented into shorter highlight videos for further viewing.

02:22

Indicators and education programs

02:22

The speaker introduces the session by explaining their focus on analysing charts using Volume Price Analysis (VPA) and proprietary indicators developed by themselves, available at quantumtrading.com. They highlight their educational programs for forex and stocks, noting the importance of understanding the options market as a major influence on stock prices today. Details and a 20% discount code (LS20%) for these programs are available at quantumtradingeducation.com. For purchasing individual indicators or bundles, customers need to contact customer service due to platform differences. The speaker apologizes for a brief correction regarding the discount code and thanks the audience for their patience.

04:59

Futures market reaction analysis

04:59

The discussion focuses on whether futures markets lead or lag in response to events, highlighting that futures typically lead because they open earlier, such as on Sunday evenings. Using the example of the MNQ E-mini NASDAQ futures, the speaker notes a noticeable gap down following weekend events. They mention ongoing analysis and threads about the SPY and QQQ ETFs, emphasizing that futures reflect underlying market conditions. The segment also touches on recent price action and a prolonged consolidation phase seen in both ETFs and futures leading into the London market open.

06:22

Market consolidation and trends

06:22

The speaker discusses markets that are range-bound with well-defined support and resistance levels, emphasizing the importance of patience and waiting for key levels to break before a trend is confirmed. They introduce Wolfe’s second law, the law of cause and effect, explaining that the longer a market remains in congestion (cause), the stronger the resulting trend tends to be once it breaks with strong volume. Within congestion, periods may appear as distribution or accumulation, but true shifts are identified through anomalies—disharmony between price action and volume. The speaker is currently awaiting the opening of the North American market to observe further developments.

08:14

Trading psychology and volatility

08:14

The speaker discusses the recent dramatic market reactions, emphasising that traders—not investors—are responding to volatility. They advise maintaining a calm mindset and not rushing into a rapidly moving market driven by emotion. Volatility is necessary as it creates trading opportunities, but it’s important to step back and analyze the situation carefully. Volume price analysis is recommended as a useful tool to gain an edge. The speaker also notes that it’s perfectly acceptable to refrain from trading when the market feels beyond one’s comfort zone.

09:31

The discussion focuses on the discomfort and uncertainty caused by volatility, illustrated by recent geopolitical tensions in the Middle East. The speaker describes the impact of drone attacks on a Saudi oil refinery and the resulting effects on oil prices. They highlight the unpredictable nature of such conflicts and the difficulty in containing them once they escalate. This uncertainty leads to increased market volatility, compounding the existing instability and affecting all market participants.

10:48

Risk management and position sizing

10:48

The speaker discusses the concept of risk in trading, emphasising that while monetary risk is straightforward to calculate based on one’s trading account, the risk inherent in the trade itself is often overlooked by newer traders.

11:22

Volatile markets naturally carry higher risk, but traders often hesitate to step back because volatility also presents opportunities. Managing this risk effectively involves adjusting position sizes rather than avoiding trades altogether.

12:02

Experienced traders highlight two key disciplines for success: maintaining discipline and mastering position sizing. Properly adjusting position sizes is crucial for longevity in trading and managing risk during volatile times.

12:42

Traders should seize opportunities in volatile markets but with smaller position sizes than usual to control risk. The speaker hints at further insights from a colleague and introduces a five-minute chart of the MNQ as an example.

13:16

Analysing gap down and volume spikes

13:16

The segment discusses a significant market event from last Friday, focusing on a large gap down and a volatility candle observed on Sunday evening. It highlights the initial market reaction involving heavy trading volume and a pronounced tail at the bottom of the first 5-minute candle, indicating buying activity following the gap down.

13:52

This part explains how market makers use volatility to track traders’ behaviour during gap-downs. It mentions resources like David’s videos and X (formerly Twitter) for further insights. The text stresses that a gap down was expected, and that buying activity emerges after an initial drop, illustrating market maker strategies.

14:24

Here, the focus is on traders’ reactions to the gap down, where many go short initially, but the market quickly reverses with a volatility candle that has a wick at the bottom and high volume. This reversal would have caught many traders off guard, triggering stops and driving a subsequent upward move contrary to expectations.

15:02

This segment describes the market’s unpredictable behaviour following the initial reversal, showing some congestion but with an upward bias. It emphasizes how market makers control price movements, exploiting traders’ expectations by moving the market opposite to conventional assumptions during volatile events.

15:48

The discussion here focuses on understanding volatility through candle patterns and volume analysis to gain a trading edge. It highlights the importance of position sizing, patience, and using Volume Price Analysis (VPA) principles combined with indicators from standard and quantum trading tools to navigate market maker-driven moves.

16:29

This final segment references a volatility candle to the upside and buying-volume zones before a move lower, noting the significance of trends in the Asia-Pacific market. It implies that understanding these patterns in different regions is crucial for anticipating market direction and market maker tactics.

17:06

Trend continuation and reversal signals

17:06

The speaker discusses the challenge of deciding when to enter a falling market trend, particularly as European trading hours begin. They emphasise watching for discrepancies between price action and volume as potential entry signals. An example is given where a downward move is followed by a pullback, highlighting an anomaly: price is falling while volume is rising, with a narrow candle spread, suggesting a possible pause in the trend.

18:14

The concept of primary, secondary, and micro trends is introduced to analyze whether the observed pause is a reversal or just a temporary halt in the downward trend. By examining volume beneath the candles, it becomes clear the primary downtrend is likely to continue despite the pause. The speaker points out another volume-price anomaly indicating the trend will proceed lower, which may offer another entry opportunity.

19:20

As the trend continues downward with increased volatility, traders might expect a reversal, but the speaker shows that small upward moves with declining volume are merely pauses rather than trend changes. These volume and price signposts help traders decide whether to hold their positions or take partial profits, reinforcing the importance of volume analysis in trend trading.

20:26

Traders are encouraged to accept capturing only portions of a trend rather than the entire move, as high-probability trades are preferable to chasing perfect entries and exits. The speaker acknowledges that while confident analysis often aligns with outcomes, no trading method is 100% reliable, and partial gains within evolving price action are still valuable.