Why I Reversed My LONG Position When This Happened And How to Predict A Potential Reversal

Anthony Speciale here with Hawkeye Traders. I hope you’re having a wonderful day.

In today’s fast-paced trading environment, making informed decisions is crucial.

As retail traders, our success often hinges on our ability to analyze market movements and act swiftly based on reliable data.

One of the most powerful tools in our arsenal is the relationship between volume and price action, a concept that can often be the difference between a profitable trade and a costly mistake.

In a recent session, I found myself navigating the complex waters of crude oil trading, and I want to share a pivotal moment with you—a moment that underscored the importance of understanding volume and price action.

The Trade: A Real-Time Decision

Let’s set the scene: It was a typical trading day, and I was closely watching the Light Sweet Crude Oil futures on a three-minute chart.

The market had been in a moderate uptrend, marked by higher lows and a gradual increase in price. However, something caught my eye around 8:00 AM.

After a significant push upwards around 7:30 AM with minimal follow-through, the market made another aggressive push at 8:00 AM.

Initially, I was long, anticipating continued upward momentum. But as I observed the candles, something didn’t sit right with me.

The candle that formed at 8:00 AM opened near its low and closed near its high, typically a bullish sign.

However, the subsequent candle failed to follow through despite a surge in buying volume.This discrepancy between the volume surge and the lack of price movement rang alarm bells.

It was a classic sign of potential reversal—a situation where buying volume spikes but fails to drive prices higher, often indicating that buyers are running out of steam.

The Reversal: Acting on the Signs

Recognizing the potential for a reversal, I made a swift decision to reverse my long position and go short. The reasoning was simple: if the market couldn’t sustain its upward momentum despite high buying volume, a downside move was likely.

I placed my stop just above the candle that had triggered my decision, minimizing my risk.

The market soon confirmed my suspicion. We saw a sharp move to the downside, a retest that failed, and then the market continued to sell off.

In a short span, crude oil futures dropped by 70 to 80 ticks—a substantial move for an intraday trade. This wasn’t just a lucky call.

It was a calculated decision based on the interaction between volume and price action—one of the most reliable indicators in trading.

Why Volume and Price Action Matter

You might wonder why I emphasize volume and price action so much.

The answer is straightforward: these are the only real-time indicators that reflect the market’s intentions.

While many traders rely on lagging indicators that tell you what has already happened, volume and price action offer a glimpse into what is happening right now—and what might happen next.

By mastering the relationship between these two factors, you can start to see the market’s moves before they happen.

You’ll be able to spot potential reversals, identify exhaustion points, and make more informed trading decisions.

Join Me for a Deeper Dive

If you’re serious about improving your trading skills, I invite you to join me for an in-depth training webinar.

We’ll explore the concept of volume and price action across multiple asset classes and timeframes, helping you apply these principles to your own trading.

During the webinar, I’ll show you how to set up the Hawkeye Volume Indicators on your trading platform, and my team will assist you in getting everything running smoothly.

Plus, you’ll gain access to the Hawkeye Volume Mastery Series, allowing you to continue your education at your own pace.

This is more than just a webinar—it’s a chance to transform your trading approach by focusing on what really matters.

Volume and price action are the keys to unlocking the market’s intentions, and I’m excited to help you discover them.

Click the link below to join the training webinar. I look forward to seeing you there!

Join the Webinar

Don’t miss this opportunity to deepen your understanding of the market and improve your trading skills. Join me in the training webinar by clicking the link below.

I look forward to seeing you there and helping you take your trading to the next level!

Happy Trading,

Anthony Speciale

Hawkeye Traders

Big Energy Profits