Congrats To BEP Members Locking In An Additional 400 TICKS Of PROFIT
Welcome to our latest update from Hawkeye Traders. Anthony Speciale here, and today, I’m thrilled to share some exciting news and valuable insights that can help you navigate the ever-changing landscape of the markets more effectively.
We initially entered the trade at $78, and today, we hit a high of $82.0, taking profits at $80 and $82, respectively.
This fantastic setup has provided our members with substantial gains, especially during the summertime rally in crude oil.
In this blog post, I want to focus on the importance of volume in trading and how it can help you make more informed decisions.
Understanding volume can provide you with critical insights into market behavior, allowing you to identify potential highs and lows during a trading session.
Let’s delve into a recent example from the crude oil market to illustrate this concept.
The Power of Volume Analysis
Crude oil opened the New York session at 9:00 AM, and we witnessed significant activity right out of the gate.
At 9:05 AM, the buying volume peaked, which is clearly visible on the volume chart.
However, by 9:10 AM, we saw the session high being placed on lower buying volume, followed by a substantial sell-off of approximately 55 ticks.
Why did this happen?
Many traders, including Big Energy Profits members, were eyeing $82 as a major target.
When significant targets are reached, a large number of sell orders typically get triggered, overpowering the remaining buyers and causing the price to drop.
This pattern can provide traders with valuable clues about potential resistance levels.
Identifying Key Trading Signals
Let’s break down the key signals from the crude oil session:
- Initial High on Lower Volume: The session high was established with lower buying volume at 9:10 AM, indicating a potential peak.
- Aggressive Sell-Off: Following the high, a sharp sell-off occurred as sell orders flooded the market, leading to a significant price drop.
- Failed Retest of High: Later in the session, a second attempt to breach the high on high buying volume failed, reinforcing the resistance level.
These signals suggest that the high established at $82.04 was a significant resistance point. When the market fails to push through a high on increased buying volume, it often indicates that a peak has been reached, at least for the current session.
Practical Application for Traders
As a trader, recognizing these volume patterns can help you make more informed decisions.
Here are some practical steps to incorporate volume analysis into your trading strategy:
- Stay Informed: Continuously monitor volume levels alongside price action. High volume at significant price points can indicate potential reversals or continuations.
- Be Flexible: Adapt your trading strategy based on volume signals. If you notice a high being placed on lower volume followed by a sell-off, consider adjusting your positions accordingly.
- Use Simple Tools: Rely on essential indicators like volume and price action. Avoid cluttering your charts with unnecessary tools that can lead to confusion.
Invitation to Enhance Your Trading Skills
To further enhance your trading skills, I invite you to explore the resources we offer at Hawkeye Traders.
CLICK HERE to access our powerful indicators and Hawkeye Volume Mastery series.
Additionally, we provide information on Big Energy Profits for those interested in swing trading the energy sector using volume and price action.
Congratulations again to our Big Energy Profits members for achieving 400 ticks – that’s $4,000 per contract closed at our current target.
We’re still aiming for higher targets, but taking profits along the way ensures consistent gains and minimizes risk.
Understanding volume and its relationship with price action is crucial for successful trading.
By focusing on these core elements, you can gain valuable insights into market behavior, identify key levels, and make more informed trading decisions.
We look forward to helping you integrate these strategies into your trading routine.
Thank you for being a part of our community. If you have any questions or need assistance, please don’t hesitate to reach out. We’re here to support your journey!
Happy Trading,
Anthony Speciale
Hawkeye Traders
Big Energy Profits
