Hey Trader,
Ultra-High Volume At Supply Triggers Sell-Off, Massive PROFITS Captured
In this post, I want to share a recent trade that we took inside the Big Energy Profits Program, focusing on how the Hawkeye Volume Indicator played a critical role in our decision-making process.
The trade was on Plug Power Inc. (PLUG), and I believe the details of this case study will provide you with valuable insights that can enhance your own trading strategy.
The Setup: Analyzing Plug Power’s Price Action
Let’s dive into the daily chart of Plug Power, traded on the NASDAQ.
What caught our attention was a period of consolidation followed by a sharp price move that presented a potential trading opportunity.
Our focus was on the price action around October 11, 2023.
On this day, we observed an unusually high selling volume that didn’t lead to a new low.
This high-volume activity at a critical area of consolidation was a red flag.
It suggested that sellers were stepping in aggressively, but buyers were unable to push the price above the consolidation zone.
This failure to break higher despite strong selling volume indicated a potential downside move.
The Trade: Executing the Short Position
Based on our analysis, we entered a short position at $7.35.
The high selling volume and failure to close above the consolidation area were key factors in making this decision.
We set initial profit target at $6.25, a level we reached fairly quickly, locking in a 15% gain.
Our strategy involved managing the trade dynamically.
After hitting the first profit target, we moved our stop-loss to the entry point to protect our position. This approach allowed us to ride the trend while minimizing risk.
Risk vs. Reward: A Strategic Approach
At the time of entry, our risk-to-reward ratio was nearly 2:1. This setup gave us confidence in the trade, knowing that we had a favorable probability of success.
As the trade progressed, we continued to manage our position, ultimately taking additional profits when the market gapped down, offering us a nearly 50% gain.
The Outcome: A Successful Trade with Room for More
To date, we’re still holding a portion of this position, which is currently up almost 73% as it approaches our final profit target.
The market's behavior—particularly the price gaps that often occur in high-momentum trades like this—has worked in our favor.
Our decision to take profits incrementally and adjust stops as the trade moved in our direction has been validated by the market action.
As of now, we’re just 16 cents away from hitting our final target. If the price continues to fall, we’ll analyze further to determine if there’s potential for additional gains.
Key Takeaways: The Power of Volume Analysis
This trade was driven by one fundamental concept: understanding the relationship between volume and price action.
By recognizing the significant selling volume at a critical point of consolidation, we were able to position ourselves for a highly profitable trade.
Invitation to Learn More
If you’re interested in diving deeper into how volume and price action can transform your trading, I’d like to invite you to join me in a training webinar.
During this session, I’ll go into detail about the techniques used in this trade and how you can apply them to your own trading, regardless of the asset class or time frame.
In the webinar, we’ll explore how these concepts can be applied to day trading, swing trading, scalping, and even options trading.
Plus, you’ll gain access to the Hawkeye Volume Indicators, which work seamlessly on platforms like TradeStation, TradingView, NinjaTrader, and MetaTrader.
Additionally, I’ll grant you access to the Hawkeye Volume Mastery Series, where you can learn at your own pace and develop a deep understanding of how volume drives market movements.
Join me in this journey to better trading. Click here to sign up for the webinar, and let’s take your trading skills to the next level.
I look forward to seeing you there and helping you succeed in the markets.
Stay informed, stay focused and stay disciplined ! ! !
Thank you for reading, and I look forward to seeing you in our next session . . .
God bless, and have a wonderful day!
If you have any questions or need further guidance, please don't hesitate . . . info@specialeanalysis.com May the markets be ever in your favor!
Happy Trading,
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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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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