Anthony Speciale here with Hawkeye Traders, bringing you another live volume interaction analysis.
Today, I want to walk you through the thought process behind these two trade setups, emphasizing the critical role of context in the market.
My goal is to help you harness volume and price action as the foundation of your trading strategy.
Whether you’re building on existing skills or just starting out, this is where it all begins.
The Importance of Live Market Experience
I watch the market live every single day. Why?
Because true experience and learning come from observing live market conditions.
It’s easy to look back in hindsight and see patterns, but trading in real time involves emotions and discipline that can’t be replicated any other way.
When I analyze the market live, I do it in front of other traders.
This adds a layer of accountability and credibility to my work.
These traders are using their own money, and my real-time analysis helps them make informed decisions based on the evidence the market provides.
Today’s Market Setup
Let’s dive into today’s session. At 7:42 AM Eastern Standard Time, we saw a massive candle with ultra-high buying volume. This was a critical moment.
We had two possible scenarios: a reversal or follow-through.
At Hawkeye, we call this a “green bottom” when dealing with buying volume.
The wide bar was highlighted in magenta, indicating it was significantly larger than previous bars over a calculated period.
Analyzing Key Market Movements
I focus on whether the price closes above or below such significant volume bars.
We saw the price push back up to the high, fail, and then retest the low, creating a short-term double bottom.
The middle high of this formation is known as the neckline.
By 8:00 AM, we saw a candle closing above the neckline, suggesting a potential push towards the previous high before the aggressive selling.
This movement offered about 47-48 ticks, a respectable trade opportunity.
Managing the Trade
As the price continued to move, I was closely watching for a close below the double bottom, which occurred with strong selling volume.
This was a critical signal. It indicated a potential for the market to fall further, aligning with our expectations based on the volume and price action observed.
My analysis predicted specific profit targets to the downside:
- 56 ticks into 2400
- 110 ticks into 2394.5
- 135 ticks into 2392
- 177 ticks into 2388
The Power of Volume and Price Action
This trade setup illustrates how volume and price action create a story that traders need to read, interpret, and act upon.
Understanding the relationship between high buying and selling volumes is crucial.
When ultra-high buying volume meets resistance, it takes equally high selling volume to break through those levels.
Hawkeye’s software simplifies this analysis.
It color-codes the bars and volume spikes, highlighting areas of significant activity.
This visual representation helps traders quickly understand who is in control – buyers or sellers – and make informed decisions.
Consistent, Predictable Trading
The key to successful trading is consistency and discipline.
By employing a well-defined trade plan and risk management approach, traders can take advantage of predictable market movements.
The goal is not to play in uncertain, “junk” areas of the market but to focus on clear, high-probability setups.
Learn and Master Your Trading
To help you master these techniques, we offer Hawkeye’s volume and price action tools along with comprehensive training resources.
This combination will enable you to understand and apply these principles in real-time market conditions.
Ready to learn more about how to leverage these VOLUME tools? CLICK HERE NOW.
Reach out to me or the Hawkeye team with any questions, and we’ll get you started on the path to more informed and confident trading. I’ll see you in the next video!
Happy Trading,
Anthony Speciale
Hawkeye Traders
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