Today, I want to highlight that trouble is brewing in the markets. Price working together with volume is a good indication of future price direction. Today’s video shows why I think the markets are setup for a correction.
What do the charts say
Looking at the daily and weekly charts, volume and price show an engulfing bar that takes out the previous 4 trading day’s ranges. Historically, that is a very good indicator of either a reversal, or a correction.
The daily S&P 500 e-mini futures index (ES) shows this well, as does the NQ, YM, and RTY. Volume is showing high activity in this setup, and I want to refer to a new term for this activity: “V-Swarm”. In the coming weeks, I will be referring to v-swarm as the volume action in these markets.
The Hawkeye Perspective
When you see an opposing volume price bar completely engulfing a previous day’s price range, look for a correction at least, or possibly a full reversal. Only time will tell, but now you know why. Learn to trade the Hawkeye way.
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