In “Stock Trading & Investing Using Volume Price Analysis”, the author emphasizes the enduring effectiveness of Volume Price Analysis (VPA) as a trading method. Anna Coulling emphasizes that Volume Price Analysis (VPA) combines volume and price as key indicators, offering better insights into market dynamics than using price alone. She highlights that this method has been used for over a century by famous traders like Charles Dow and Jesse Livermore, and remains relevant today in stocks, futures, and cryptocurrencies.
Coulling strongly believes in the VPA approach, noting how it has positively changed the trading experiences of many users. She advises both new and experienced traders to incorporate Volume Price Analysis (VPA) into their current strategies, stating it can be used across various timeframes and markets without requiring a complete change of methods.
Success in trading relies on understanding the relationship between volume and price, making Volume Price Analysis (VPA) a valuable tool for traders. This makes the book a valuable resource for anyone looking to elevate their trading or investing game.
Stock Trading & Investing Using Volume Price Analysis by Anna Coulling Summary
Section 1 – What Happened Next?
The author presents charts from weekly and monthly timeframes, mainly focusing on US stocks, commodities, and currency futures. These charts illustrate how trends developed and evolved over time. The charts cover the period of 2016 to 2017 and highlight the following key points:
- Comparison of weekly vs monthly timeframes: How the two timeframes provide different perspectives on price movements.
- Volume-Price Analysis (VPA): Illustrates the principles of VPA through historical data, focusing on how volume predicts future market movements.
- Multiple market sectors: This section includes not only stocks but also commodities and bonds to demonstrate the versatility of VPA.
Section 2 – Monthly Stock Charts
This section further builds on the analysis by using monthly charts from key U.S. indices like the S&P 500, Nasdaq 100, and Dow 30. The primary focus is on long-term investing perspectives:
- VPA in different markets: The chapter demonstrates how the volume-price relationship applies across various stock indices.
- Market trends and reversals: The charts in this section show how VPA can identify key moments when the market is poised for reversal or breakout.
- Patterns and cycles: Understanding the price and volume cycles in different indices helps long-term investors time their entry and exit strategies.
Section 3 – What Happened Next in Other Markets?
Here, the author shifts attention to other markets such as commodities, indices, bonds, and currency futures. Similar to stocks, VPA principles hold true in these markets:
- Futures markets: The futures markets’ unique dynamics are explored, showing how large operators drive these markets.
- Market manipulation: A focus on how the big players (market makers and insiders) influence futures prices, providing insights for traders to align themselves with these market moves.
- Key examples: Specific case studies highlight how to identify market tops and bottoms using volume signals.
Section 4 – Trading the Daily Charts
In this section, the focus moves to daily charts, which are more relevant for active traders or investors with shorter-term goals:
- Daily timeframe dynamics: The daily chart examples offer insights into how short-term volume patterns can help predict price movements.
- Congestion phases: Emphasizes the importance of patience during consolidation phases, and how these moments often precede significant price moves.
- Volume consistency: Understanding how consistent volume during price moves can signal whether a trend will continue or reverse.
Section 5 – Speculative Markets
This section covers speculative markets such as commodities, bonds, indices, and currency futures, showing how VPA applies in highly speculative environments:
- Volatility and volume: Speculative markets often experience sharp price movements. This section explains how traders can use VPA to anticipate and profit from these moves.
- Supply and demand dynamics: Offers a deeper understanding of how volume reflects the balance between buyers and sellers in speculative markets.
- Key examples: Provides detailed case studies of major market moves and how VPA signals indicated potential turning points.
Why You Should Buy and Read Stock Trading & Investing Using Volume Price Analysis
The “Complete TurtleTrader” by Anna Coulling offers invaluable insights into the world of Volume Price Analysis, providing readers with tools to anticipate market movements across a wide range of markets. By focusing on the underlying dynamics of volume and price, this book empowers traders and investors to make informed decisions. With real-world examples and a systematic approach, it is a must-read for anyone serious about understanding market behavior and achieving consistent success.
This post is part of Making Money in the Stock Market, where you can read about the overview of strategies in investment and short term trading.