https://youtu.be/1jssQveEdh0
Learn How to Trade Index Futures and the Importance of Divergence in Price Action
Index futures like ES, NQ, or YM offer high liquidity and volatility. They track major stock indices. Trading them requires understanding price action. Divergence is a key signal. It warns of potential reversals when price and momentum disagree.
What Is Divergence in Price Action?
Divergence occurs when price makes new highs or lows. But an oscillator (like RSI or MACD) fails to confirm. Bullish divergence: Price new low, oscillator higher low—buyers stepping in. Bearish divergence: Price new high, oscillator lower high—sellers distributing.
Why Divergence Matters in Index Futures
Index futures trend strongly but reverse sharply. Divergence spots exhaustion early. For example, ES rallies to new high. But volume drops and RSI shows lower high. This signals weakness. Volume price analysis (VPA) confirms—high price on low volume means distribution.
Applying VPA to Divergence
Volume price analysis (VPA) strengthens divergence signals. High volume on reversal candles validates the turn. Quantum indicators on NinjaTrader highlight this—Accumulation/Distribution...
https://www.youtube.com/watch?v=F0pOfBXHYyU
The yen is a unique currency in the forex market as it can confirm either risk on or risk off sentiment. In this excerpt from today's forex webinar, it was a case of which of the yen pairs offered the best trading opportunity as the indices moved higher.
The Yen Complex Confirms Market Sentiment: Why JPY Behaves This Way and Key Pairs to Watch
The Japanese yen (JPY) complex is a powerful barometer for global risk sentiment. When yen pairs move together, it confirms market mood clearly. JPY strengthens in risk-off (fear). It weakens in risk-on (optimism). This relational behavior creates high-probability trades. Volume price analysis (VPA) validates conviction—high volume on yen moves shows real sentiment shifts.
Why the Yen Behaves This Way
JPY is the premier safe-haven currency:
Low Interest Rates: BoJ policy keeps rates near zero. This makes yen cheap to borrow—fueling carry trades in risk-on.
Safe-Haven Demand: In uncertainty (equities drop, crises), investors repatriate funds. Yen buying surges.
Carry Trade Dynamics:...
https://www.youtube.com/watch?v=acHeR60b8Yk
Market reversals happen for many reasons and as traders, we are constantly scanning the market to try and judge its mood and whether the sentiment is going to be risk on or risk off? One way to is to consider related markets such as bond or proxy instruments such as the aud/jpy from the forex market. In this video we consider the aud/jpy and how it signalled a potential move higher in the indices.
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https://www.youtube.com/watch?v=t14k-qi7i54
Using a non time based chart such as a Renko will not only give traders smarter more precise entries but also help to stay in a trade. However, there is an issue in that traders have to guess the value of the Renko brick. However, the Renko Optimizer for Ninjatrader will calculate the optimal value in different time frames. The video explains how to use this indicator in multiple time frames to trade the ES emini contract (futures contract for the S&P500).
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