Hey Trader,
One Candle Sets Stage For Session Sell-Off
Welcome, traders! Anthony here with Hawkeye Traders. I hope you're having a fantastic day.
Today, I want to dive into a real, live trade that I identified and executed. This wasn't just any trade—I called it live in front of other traders who were trading with real money.
While I can't say whether they took the trade or not, my analysis was based on volume and price action, which led to what I believe was a great trading opportunity.
The Importance of Volume and Price Action
At Hawkeye, we emphasize the significance of volume and price action in trading.
Let's break down the trade that highlights how crucial these elements are. The key moment occurred at 3:54 a.m. Eastern Standard Time. A Hawkeye Wide Bar formed, showing the highest buying volume since the overnight open.
However, what happened next is crucial: we saw rejection immediately after this high buying volume, indicating a potential exhaustion or volume climax.
Identifying the Set-Up
I drew a box around this significant bar and monitored price action every time it retraced into this area. We noticed a push below, a high that couldn’t be overcome at 77.15, and a double top pattern—a clear sign of buyer exhaustion.
This double top, coupled with a downward trend line from the overnight highs, suggested a strong shorting opportunity.
Trading the Double Top
A double top is formed when the price fails to surpass a particular high on two occasions, creating a resistance level. In our scenario, the double top at 77.15 indicated a high probability of a downtrend.
The neckline, or the low between the double tops, becomes the initial target.
As the price pushed below this neckline, it targeted prior lows and continued lower, hitting all projected targets and even exceeding them.
Achieving Targets
From the double top, the market pushed down to $74.
Initially, I identified targets below the session's prior lows at 76.30, 76.10, 75.80, 75.60, 75.30, 74.70, and 74.50.
The market eventually hit $74, well beyond the initial target, demonstrating the power of understanding volume and price action.
The Power of Live Analysis
Analyzing and predicting market movements live in front of an audience adds an extra layer of accountability.
It’s not about hindsight but about real-time interpretation of market signals.
This particular trade underscored the importance of recognizing high buying volumes without follow-through as a sign of buyer exhaustion.
Simplicity in Trading
One of the core philosophies we advocate at Hawkeye is the simplicity of focusing on volume and price action. Before adding various indicators to your charts, consider how much clarity you can gain from understanding these two fundamental aspects.
Often, less is more. A clean chart with multiple time frames focused on volume and price action can provide all the information you need for successful trading.
I invite you to watch the training webinar and reach out to the Hawkeye team.
Many traders rely on strategies that don’t prioritize volume and price action, and this often leads to inconsistent results. Our volume driven tools and mastery library can transform your approach, making your trading clearer and more effective.
Trading with a focus on volume and price action, complemented by Hawkeye indicators, simplifies the process and enhances clarity.
It’s about mastering your emotional state, trading psychology, and analytical skills. This focus can be the pivotal change in your trading career.
Thank you for taking the time to read this post. I look forward to seeing you in our next video.
Don’t hesitate to reach out with any questions—we're here to help you on your trading journey. Volume and price action are the keys to success, and with Hawkeye, you can unlock your full trading potential.
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.
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