Volume point of control indicator
Session crossovers provide market makers with the perfect opportunity to trap traders into losing positions. Sadly, many traders are still unaware that this happens regularly and across all markets. It is done using the volatility we always see when transitioning from one financial centre to another or at the opening of a physical market. For example, at the Wall Street open, there is an inrush of participants into equities and markets such as Globex. The result is always volatile, with prices moving quickly in one direction before reversing sharply.
However, traders who use price action and volume analysis recognize these traps and stay out until the true market direction is confirmed. There was a great example this week on the gbp/jpy at the London open when as we can see from the 15 min chart above, the currency pair seemed poised to reverse lower following a strong move higher at Eurex (the European open) and following such a move a reversal...
