Using Hawkeye Volume To Stack The Odds In My Favor – Flawless Reversal
Anthony Speciale here from Hawkeye Traders. I hope you’re having a wonderful day.
Today, I want to share the details of a trade I executed in the crude oil futures market and illustrate how Hawkeye Volume Analysis was pivotal in making my trading decisions.
The Setup: Crude Oil Futures on a 5-Minute Chart
The trade took place on a 5-minute chart of WTI Light Sweet Crude Oil Futures.
At 7:15 AM, I entered a short position. The key factor in my decision was the market’s behavior around the 6:55 AM mark.
Analyzing the Volume and Price Action
At 6:55 AM, the chart showed a build-up in buying volume followed by a Hawkeye Wide Bar.
This wide bar often signals a potential flawless reversal. I patiently waited for the price to revisit this wide bar’s wick area.
The rationale was that if the price failed to break above this wick, it would likely head back towards the prior lows, which is exactly what transpired.
Key Observations
- Strong Buying Volume with Weak Candle Close: Despite a significant increase in buying volume, the candle closed at about the 60-65 percentile of its range. This indicated that the buyers couldn’t maintain control in the upper 30-35% of the candle’s range.
- Repeated Failures at Resistance: The price tested the resistance area again and failed, reinforcing my short bias.
- Previous Hawkeye Wide Bars: Looking back, another Hawkeye Wide Bar on high selling volume had shown similar behavior, failing to close in the bottom 10 percentile, indicating strong support at that level.
The Trade Execution
I shorted at 7:15 AM, targeting the prior lows, supported by the analysis of Hawkeye Wide Bars and volume behavior. As price approached these prior lows, I started to take profits incrementally, adhering to the principles of paying and protecting myself.
The Importance of Volume and Price Action
Understanding the relationship between volume and price action is crucial.
Hawkeye’s indicators provided the confidence to place the trade by highlighting significant buying volume that couldn’t sustain higher prices, suggesting a likely downturn.
Key Takeaways for Traders
- Volume Analysis: The highest buying volume in the session failed to push prices significantly higher, indicating potential weakness.
- Hawkeye Wide Bars: These bars, combined with volume analysis, are powerful tools for identifying key support and resistance levels.
- Risk Management: Always have a trade plan and good risk management strategies in place. Protect your profits by adjusting your stops and taking profits when the market offers them.
Join Me for a Deeper Dive
To truly grasp these concepts and apply them to your trading, I invite you to join me in a training webinar. We will delve deeper into the interaction between volume and price action, regardless of the market or timeframe you trade.
In the webinar, you will learn:
- How to identify key trading opportunities using volume analysis.
- The significance of Hawkeye Wide Bars in your trading strategy.
- Practical tips for effective risk management and trade planning.
Whether you’re trading stocks, futures, forex, or cryptocurrencies, understanding these concepts will revolutionize your trading approach.
I look forward to seeing you in the webinar. Until then, may your days be profitable!
Happy Trading,
Anthony Speciale
Hawkeye Traders
Big Energy Profits
