Anthony here at Hawkeye Traders, and today I will focus my intake in a reversal case, delving into a topic that’s absolutely crucial for any trader looking to gain an edge in the market: VOLUME. In this case, identifying volume-driven reversal patterns.

In this in-depth special video, we’re going to explore how you can identify key areas in the market that were previously resistance but have now become newly appointed support. 

Not only that, but we’ll also talk about how you can confirm these areas using volume, providing you with foresight into potential market movements.

Now, you might be wondering, “How exactly do we do this?” Well, fear not, because I’m going to break it all down for you step by step.

First things first, let’s strip away any complexity. When it comes to my trading approach, I keep it simple. I focus solely on volume and price action. 

With these two powerful trading tools at my disposal, I’m able to perform my own analysis and craft a thesis around what I believe is happening in the market.

Here’s the thing: while many indicators out there are lagging, meaning they only provide information after the fact, volume and price action offer a glimpse into future market movements before they even happen. 

That’s the kind of foresight every trader dreams of!

Now, if there’s one specific aspect within volume and price action that I urge you to master, it’s identifying reversals. 

Why? Because nailing reversal patterns with accuracy can lead to incredibly profitable trades.

Let’s dive into a real-world example to illustrate this concept. Take a look at Bank of America (ticker: BAC) on a daily chart spanning approximately six months. What do we see? We see a trend line with multiple touches, indicating significant support.

But here’s where it gets interesting. Pay close attention to a specific candle marked by ultra-high selling volume. Despite the heavy selling pressure, price pulled back into two critical areas: the lower channel line and previously resistance-now-support levels.

What happened next? Price didn’t plummet as many expected. Instead, it showed resilience, closing well above the lows of the candle. This lack of follow-through on the downside, coupled with absorption of selling volume, signaled a near-perfect reversal.

The result? A rapid ascent back into the upward channel structure, yielding significant gains for savvy traders who recognized the opportunity.

So, why is mastering volume and price action so vital? Because it empowers you to enter trades with the lowest risk and the highest probability of success. 

Whether you’re day trading, swing trading, or position trading, this strategy and our Hawkeye Volume Tools applicable across various timeframes.

Ready to take your trading to the next level? Dive deeper into this theory and explore our Hawkeye trading tools by clicking here now.

Don’t hesitate to reach out to myself or my team with any questions you may have. Together, let’s approach the market with mastery in volume and price action!

To Your Trading Success,

Anthony Speciale

Hawkeye Traders

888-233-8598