More Than 2000 Ticks IntraDay Nasdaq Reversal Identified By Volume Climax
Welcome, fellow traders! Anthony Speciale here with Hawkeye Traders. As a retail trader, you know that the opening bell often sets the tone for the day.
This morning, the NASDAQ 100 provided a textbook example of how understanding the relationship between volume and price action can lead to successful trades.
In this blog post, I’ll walk you through the key moments from this morning’s session, highlighting a massive volume climax that set the stage for a significant selloff.
The Opening Bell and Volume Climax
At 9:30 AM Eastern Standard Time, the U.S. market opened, and immediately, we saw a substantial spike in volume—what we call a “volume climax.”
This type of spike is critical because it often indicates a potential shift in market direction.
Specifically, I was focused on the 9:30 AM candle on the NASDAQ 100 Futures, highlighted by our Hawkeye Wide Bar indicator.
This wide bar, colored in magenta on our charts, signaled the presence of ultra-high volume, a key indicator that something significant was about to happen.
The high of this candle was 18,540.75, a level that the market repeatedly tested—five times, in fact—before ultimately collapsing.
The Significance of the 15-Minute Chart
As an intraday trader, you might typically reference a 4-hour or 60-minute chart for overall market direction.
From there, you might zoom into a 30-minute or 15-minute chart, and then finally dial down to a 5, 3, 2, or 1-minute chart depending on how aggressively you trade.
In this case, the 15-minute chart was particularly telling.
The volume climax that occurred at the opening bell was fully respected by the market throughout the morning session.
Despite multiple attempts to break above the high of that initial wide bar, the market couldn’t do it.
This failure to follow through on the buying volume was a clear signal that a selloff was likely.
Over 2000 Ticks of Opportunity
What happened next was dramatic but not entirely surprising if you understood the relationship between volume and price action.
After failing to break above the high of the opening candle, the NASDAQ 100 Futures began a steep decline, resulting in a drop of over 2000 ticks.
This kind of move represents a significant opportunity for traders who were paying attention to the signals provided by volume.
The aggressive intention of buyers at the open, followed by their inability to push the market higher, was a clear indication that the momentum had shifted to the sellers.
Why Volume and Price Action Matter
The key takeaway here is the importance of understanding the relationship between volume and price action. Volume is often the only precursor to what price is likely to do next.
By paying attention to volume climaxes, like the one we saw this morning, you can gain an edge in predicting market direction.
This concept is critical across all asset classes and timeframes.
Whether you’re trading stocks, futures, forex, or cryptocurrencies, understanding the intention behind market moves—whether driven by buyers or sellers—can dramatically improve your trading outcomes.
Take Your Trading to the Next Level
If this type of analysis interests you, I’d like to invite you to join me in a training webinar where we’ll dive deeper into this relationship between volume and price action.
During the webinar, we’ll explore how this concept applies across different markets and timeframes, whether you’re a scalper, day trader, swing trader, or position trader.
Once you’ve grasped the concept, we’ll also walk you through installing the Hawkeye volume indicators on your trading platform.
These tools are compatible with TradeStation, TradingView, NinjaTrader, and MetaTrader, making it easy for you to apply what you’ve learned to your own trading.
In addition, you’ll gain access to the Hawkeye Volume Mastery Series, a comprehensive educational resource that will help you continue learning at your own pace.
Our team will be there to support you every step of the way.
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
