The document you provided is an excerpt from the book "Stock Trading & Investing Using

Volume Price Analysis" by Anna Coulling, published in 2017. This book serves as a practical
guide to understanding and applying Volume Price Analysis (VPA), a technical analysis
methodology that combines price movements with trading volume to forecast market direction.
Below is an explanation of the key sections and concepts covered in the document, based on the
provided OCR content:

Overview of the Book

 Author: Anna Coulling

 Purpose: The book aims to teach traders and investors how to use VPA to interpret
market behavior, identify insider activity (e.g., market makers or big operators), and
make informed trading decisions. It includes over 200 worked examples across various
markets and timeframes.
 Target Audience: Both novice and experienced traders/investors interested in technical
analysis, particularly those unfamiliar with or seeking to deepen their understanding of
VPA.
 Publication Details: © 2017 Anna Coulling, self-published with copyright protection
emphasized.

Key Sections Explained

1. Foreword (Pages 5-6)

 Introduction by Anna Coulling: The author welcomes readers and outlines her goal to
illustrate VPA concepts using real-world examples from stocks, commodities, indices,
bonds, and currency futures across weekly, monthly, and daily charts.
 Focus: The book deliberately avoids additional indicators, focusing solely on the
relationship between volume and price, supplemented by support/resistance and
candlestick patterns.
 Versatility of VPA: Coulling emphasizes that VPA applies to all markets and
timeframes, whether for long-term investing or short-term trading. She highlights its
relevance for understanding market manipulation by "insiders" (market makers or big
operators).
 Historical Context: The methodology traces back to iconic traders like Charles Dow,
Richard Wyckoff, and Jesse Livermore, who used volume and price data from ticker
tapes.
 Personal Insight: Coulling shares her 20+ years of experience using VPA and references
the recovery from the 2007/2008 financial crisis as an example where VPA signaled a
bull market when others predicted a "Great Short."

2. Introduction to Volume Price Analysis (Pages 7-10)

  Core Concept: VPA extends traditional price-based technical analysis by incorporating
volume, which reveals market manipulation and insider activity that price alone cannot
show.
 Historical Roots: Developed by Charles Dow and refined by Richard Wyckoff, VPA is
based on the idea that markets are manipulated by insiders who know future directions.
Traders can follow these moves by analyzing volume alongside price.
 Wyckoff’s Three Laws:
1. Supply and Demand: Prices rise when demand exceeds supply and fall when
supply exceeds demand.
2. Cause and Effect: A significant "cause" (e.g., prolonged accumulation) leads to a
proportional "effect" (e.g., extended price movement).
3. Effort vs. Result: Volume (effort) should align with price movement (result);
discrepancies signal insider buying or selling.
 Market Cycles: Markets move from selling climaxes (insiders sell at tops) to buying
climaxes (insiders buy at bottoms), often using news and volatility to manipulate
sentiment (e.g., FOMO or fear of loss).
 Practical Application: VPA helps traders identify when insiders are buying, selling, or
absent, especially during congestion phases (70-80% of market time), where trends are
born.
 Volume Definitions: Varies by market—exchange-reported for stocks/ETFs, futures
volume for futures, tick activity for forex, and buyer/seller activity for cryptocurrencies.

3. Section 1 - What Happened Next? (Pages 11-37)

 Structure: This section analyzes weekly charts from a 2016 presentation to private
traders in London, updated with monthly charts to late 2017, showing how predictions
played out.
 Examples:
o AAP (Advance Auto Parts): Weekly (Jan-Aug 2016) shows hammer candles and
high volume signaling insider buying, followed by a rally. Monthly (Nov 2015-
Nov 2017) reveals a bearish trend with a price waterfall, but stopping volume in
mid-2017 suggests accumulation.
o ADM (Archer-Daniels-Midland): Weekly shows a rising trend with insider
absorption of selling. Monthly indicates a labored rally that weakens by 2017,
heading bearish.
o ADBE (Adobe): Weekly highlights insider buying reversing a downtrend, with
congestion suggesting distribution. Monthly confirms a strong bullish trend to
$180.94 by late 2017.
o AIV (Apartment Investment): Weekly shows accumulation and bullish
potential. Monthly reveals an 18-month rangebound phase, ideal for covered calls.
o AJG (Arthur J. Gallagher): Weekly notes a volume spike anomaly and delayed
reversal. Monthly confirms a steady bullish trend to $63.40 by 2017.
o AMAT (Applied Materials): Weekly demonstrates breakout confirmation with
volume. Monthly shows a sustained bullish trend to $56.20.
o BAX (Baxter International): Weekly includes low-volume tests and a shakeout.
Monthly notes volume distortion but a steady bullish trend.
 o BBBY (Bed Bath & Beyond): Weekly shows a trap move higher. Monthly
details a price waterfall and insider buying by late 2017.
o CFG (Citizens Financial Group): Weekly shows accumulation and a double
bottom. Monthly confirms a bullish trend with congestion by 2017.
o CHD (Church & Dwight): Weekly signals weakness with high volume. Monthly
shows a bearish trend after topping out.
o COST (Costco): Weekly notes anomalies (rising prices, falling volume). Monthly
reveals traps and insider buying for a potential rally.
o CRM (Salesforce): Weekly shows a V-shaped rally. Monthly details a gap-down
trap and a bullish trend to over $100.

4. Section 5 - Speculative Markets (Pages 273-313)

 Focus: Daily charts for futures markets (commodities, bonds, indices, currency futures),
emphasizing VPA’s universal applicability.
 Examples:
o Soybean: Shows big operators driving trends with shooting star candles signaling
weakness.
o Corn: Illustrates a selling climax and bearish trend confirmation.
o Gold: Highlights Brexit volatility and bearish congestion.
o Cocoa: Demonstrates absorption of selling and weak rallies.
o Natural Gas: Notes extreme volume and selling into weakness.
o Lean Hogs: Shows a price waterfall with high volume selling.
o Silver: Emphasizes patience after extreme volume signals.
o Platinum: Details accumulation and trend development.
o Oil: Features two-bar reversals amid OPEC supply dynamics.
o Copper: Highlights accumulation and selling into weakness.
o US Treasuries (2, 5, 10-year): Shows Brexit-driven volatility and congestion.
o US Indices (YM, NQ, ES emini): Reflects Brexit recovery and bullish trends.
o Currency Futures (AUD/USD, GBP/USD, CAD/USD, EUR/USD, USD/JPY):
Demonstrates reversals, insider activity, and Brexit impacts.

5. My Other Books (Pages 314-321)

 Lists Coulling’s other works, all incorporating VPA:

o A Complete Guide to Volume Price Analysis: Foundational VPA text.
o Forex For Beginners: Beginner’s guide to forex trading.
o Binary Options Unmasked: Balanced view on binary options.
o A Three Dimensional Approach to Forex Trading: Holistic forex strategy.
o Forex Trading Using Volume Price Analysis: VPA for forex.
o Investing & Trading in Cryptocurrencies Using Volume Price Analysis: VPA for
crypto markets.

6. Thank You & Acknowledgements (Page 322)

  Gratitude to readers, mentions her website ([Link]), Quantum Trading tools,
and educational programs. Credits NinjaTrader and MetaQuotes for charting software.

Key Concepts of Volume Price Analysis (VPA)

 Insider Activity: Market makers manipulate prices, and volume reveals their
participation or absence.
 Agreement/Disagreement: Price and volume should align (e.g., high volume with big
price moves). Discrepancies signal traps or insider moves.
 Climaxes: Selling climaxes (tops) and buying climaxes (bottoms) mark trend reversals,
often triggered by news or volatility.
 Congestion Phases: Where trends are prepared, requiring patience and volume
confirmation for breakouts.
 Tests: Low-volume moves to test supply (before bullish trends) or demand (before
bearish trends).
 Comparative Volume: Volume must be judged relative to historical or slower timeframe
data to avoid distortion.

Practical Takeaways

 Application: Readers can use VPA to spot trends, avoid traps, and confirm breakouts
across markets (stocks, futures, forex, crypto).
 Examples: The book’s 200+ annotated charts (e.g., AAP, Gold, ES emini) provide
actionable insights into real price/volume relationships.
 Mindset: Emphasizes patience, practice (e.g., on fast charts), and a multi-timeframe
approach to refine analysis.

Conclusion

Anna Coulling’s book is a comprehensive resource for mastering VPA, blending theory with
practical examples. It positions VPA as a timeless, adaptable tool rooted in the wisdom of
legendary traders, updated for modern markets. The document’s excerpts showcase its depth,
from foundational concepts to detailed chart analyses, making it valuable for anyone seeking to
decode market behavior through volume and price.