Hey Trader,
Lack of Buying Interest at Prior Highs Triggers Opening Bell Short Play
Hello traders, Anthony Speciale here with Hawkeye Traders. I hope you're having a fantastic day.
Today, I want to share a live trade I executed, alongside other traders using live money.
This detailed walkthrough of my thought process will illustrate how I identify and react to trading opportunities based on the relationship between volume and price action.
The Power of Volume and Price Action
Understanding the interaction between volume and price action is crucial for trading.
Once you grasp this relationship, it becomes almost instinctive to identify profitable trades.
Today’s trade on light sweet crude oil (on a 5-minute chart) serves as a perfect example.
Identifying Key Market Levels
Early in the session, around 5:30 AM New York time, the market hit the session's high and sold off.
It made several attempts to break this high but failed each time.
The market surged into this supply area right after the 9:00 AM open, only to face significant resistance.
The Crucial 9:05 Candle
What stood out was the 9:05 AM candle.
Despite a significant increase in buying volume, the market failed to break the supply area.
This is a fundamental concept in trading: understanding supply and demand zones where buyers and sellers dominate.
The inability to surpass this high, despite strong buying volume, was a clear signal to me.
Strategic Timing and Execution
I avoid entering trades right at the 9:00 AM or 9:30 AM opens due to heightened volatility.
After the 9:30 AM open, I observed a surge in selling volume, reinforcing my conviction that the market would likely test the session lows.
I targeted a specific support area that had been tested multiple times, signaling a potential breakdown.
Trade Execution and Management
I entered the trade anticipating a drop to the session lows.
The market, indeed, fell through, validating my analysis.
I moved my stop quickly to break even to manage risk.
The trade played out as expected, offering a significant profit opportunity.
Learning from Live Trades
I encourage you to watch the accompanying video in the blog post. It shows the trade's entry, exit, and my rationale in real-time.
Seeing the highest buying volume of the session with no follow-through was a red flag. As soon as selling gained momentum, I capitalized on the move.
The Importance of Simplicity in Trading
Trading doesn’t need to be complicated.
Traders clutter their charts with indicators like MACDs or Bollinger Bands, losing clarity.
Trading on a "naked chart" – one devoid of unnecessary indicators – allows for a clearer interpretation of the market. Understanding price action and volume is paramount.
If you’re intrigued by this approach and want to master the relationship between volume and price action, join our training webinar.
We’ll delve deeper into these concepts and get these powerful indicators on your trading platform, whether you use TradeStation, NinjaTrader, TradingView, or MetaTrader.
Additionally, you’ll gain access to the Hawkeye Volume Mastery Series, a comprehensive resource designed to enhance your trading skills at your own pace.
This series will help you build a solid foundation in understanding volume and price action, leading to more informed and profitable trading decisions.
Take the Next Step in Your Trading Journey
Don’t miss this opportunity to elevate your trading skills.
Click the link below to register for the training webinar.
This session will be the first step in transforming your approach to trading.
Following the webinar, we’ll assist you in integrating these indicators into your platform and provide ongoing education through the Hawkeye Volume Mastery Series.
Join me, and let’s unlock the full potential of volume and price action trading together. Your path to trading success starts here.
Thank you for being here today. Feel free to reach out with any questions. We are here to support you. God bless, and I look forward to seeing you in the next video.
Happy Trading,
Anthony Speciale
Speciale Analysis
About the Author:
Anthony Speciale is a seasoned market analyst with over 13 years of experience trading. Through his platform, Speciale Analysis, he offers in-depth market analysis, interpretation, and expectations designed to help all types of traders, at every skill levels reach their full potential.
Analysis, Interpretation and Expectations
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NOTE: Trading involves significant risk, and it's essential to approach it with a well-defined strategy and a disciplined mindset. This blog post is intended for educational purposes and should not be considered financial advice. Always conduct your own research and consult with a professional before making an financial decisions. For further risk related information, please refer to: www.specialeanalysis.com/disclaimer
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