Ultra-High Volume: Adding More Risk for Greater Rewards

Ultra-High Volume Offers Opportunity To Add More Risk

Welcome, traders! This is Anthony Speciale with Hawkeye Traders, and today, I want to share an insightful analysis of my morning trading session.

I focus primarily on Light Sweet Crude Oil, using Hawkeye volume indicators to guide my decisions.

By sharing my thought process and strategy, I aim to provide you with actionable insights that can enhance your trading performance.

Morning Market Overview

Today’s analysis revolves around a 5-minute chart of Light Sweet Crude Oil.

Each candle represents five minutes of price action, offering a detailed view of market dynamics.

As I began my morning session, the market was struggling to break through prior highs, creating a critical level of resistance.

At around 5:45 AM and again at 8:00 AM, the market revisited a significant resistance level but failed to rally beyond it.

This failure signaled a potential opportunity for a short position.

I drew a simple zone around this consolidation area and identified a trend line that the market was respecting.

One of the most critical aspects of my analysis was the volume.

At 8:00 AM, the market exhibited ultra-high buying volume, the highest of the session so far.

However, despite this significant buying pressure, the candle closed roughly at the midpoint of its range.

This indicated that the buyers were unable to push the price higher, a classic sign of a potential reversal.

Seeing the market’s failure to break through resistance, I entered a short position.

As the market began to move lower, I scaled out of my position, taking profits at predefined levels.

My higher time frame analysis suggested support around 80.35, slightly above the session low at 80.27.

When the market pulled back and printed another high-volume candle at resistance, I re-added to my short position.

The key here was the combination of high buying volume and the market’s inability to close in the top percentile of the candle.

This reinforced my belief that the market would continue to push lower.

The success of this trade hinged on understanding the relationship between volume and price action.

The ultra-high volume at resistance, followed by a failure to break through, was a clear signal of a reversal.

This understanding allowed me to confidently add to my position and maximize my profits.

If you found this analysis insightful, I invite you to attend our training webinar.

We’ll dive deeper into the relationship between volume and price action, equipping you with the tools to apply these principles to your trading.

You’ll gain access to the Hawkeye Volume Mastery Library, a comprehensive resource designed to enhance your understanding and proficiency in trading.

Mastering the market requires a keen understanding of the dynamics between volume and price action.

By focusing on these elements, you can make more informed trading decisions and improve your overall performance.

Thank you for reading, and I hope this post has provided you with valuable insights.

Remember, the key to successful trading is not just understanding the market but also understanding how volume and price interact.

See you in the next post!

Happy Trading,

Anthony Speciale

Hawkeye Traders

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