Hey Trader,
Understanding Apple’s Price to Volume Divergence: What It Means for Traders
As traders, one of the most critical skills to develop is the ability to read the market beyond just price action.
Understanding the relationship between volume and price can often provide the missing piece in predicting market movements with higher accuracy.
In this post, I want to take you through a recent observation I've made on Apple’s chart that may signal an important turning point.
Apple’s Price to Volume Divergence: A Closer Look
In recent trading sessions, Apple’s daily chart on the NASDAQ has shown some intriguing signals that every trader should be aware of.
Specifically, I noticed a divergence between price and volume that could suggest a significant move is on the horizon.
Let's break this down:
Recent Candle Analysis: The most recent candle on Apple’s chart closed with notably high selling volume. At first glance, this might suggest bearish sentiment; however, a closer look reveals something more nuanced. Despite the surge in selling volume, Apple failed to make a new low compared to the previous session.
Comparison with Previous Candles: If we compare this with the candle that closed before it, we notice that the prior candle had less volume but a more significant downward move. It opened near the high and closed in the bottom 15% of the candle's range. This is a classic bearish signal. Yet, the next session’s increase in volume didn’t result in a lower price, which raises a red flag.
What Does This Mean for Traders?
When volume increases significantly without corresponding price movement, it suggests that there’s a battle happening between buyers and sellers.
In this case, despite the sellers' best efforts, the buyers seem to be holding the line.
This can often be a sign of a potential reversal, where the market absorbs selling pressure and prepares for a move higher.
For those trading Apple, whether you’re trading the stock directly or using options, this is a crucial moment to watch.
Over the next few sessions, pay close attention to how Apple behaves around this support level.
If the stock holds and begins to move higher, this could confirm that we’ve seen a selling climax—a point where selling pressure is exhausted, and a reversal is likely.
Potential Scenarios Moving Forward
Support Holds and a Reversal Occurs: If Apple holds its current support level, we could see a move back up toward the $230-$233 range. This would align with the idea of a selling climax, where the downward pressure is absorbed, and buyers begin to take control.
Support Breaks and Further Downside: If the support fails, we could see Apple retest lower levels, possibly around the previous wide bar's low. This scenario would suggest that the selling pressure is too strong for the buyers to hold off, leading to further declines.
Why Understanding Volume and Price is Key
This situation with Apple is a perfect example of why traders need to understand the relationship between volume and price action.
Volume tells us the story behind the price movement—who is in control, buyers or sellers, and how strong their conviction is.
If you're not yet comfortable with interpreting these signals, or if you're looking to refine your skills, I invite you to join me for an upcoming training webinar.
During this session, we’ll dive deeper into these concepts and explore how you can apply them across different assets and timeframes—whether you're day trading, swing trading, or even holding longer-term positions.
What’s Next?
In the webinar, I’ll also introduce you to the Hawkeye Volume Indicator, a tool that has been instrumental in my trading strategy.
This indicator helps to clarify the relationship between volume and price, giving you a clearer picture of what’s happening in the market.
You’ll also gain access to our Hawkeye Volume Mastery series, where you can learn at your own pace and start applying these techniques to your trading immediately.
If you’re ready to take your trading to the next level and start making more informed decisions based on what truly moves the market—volume and price action—then I encourage you to join me.
Click the link below to sign up for the webinar and start your journey toward becoming a more confident, disciplined, and profitable trader.
I look forward to seeing you there and helping you achieve greater success in your trading career.
The market is constantly sending signals, and the ability to interpret these signals can make all the difference in your trading results.
By understanding the nuances of volume and price action, you can anticipate moves before they happen and position yourself to capitalize on them.
Don’t miss out on this opportunity to deepen your understanding and improve your trading performance.
Join me in the training webinar to learn more and gain the tools you need to succeed.
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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