Spotting Volume Dynamics That Resulted In A 1500+ Tick Intraday Nasdaq Sell-Off
Anthony Speciale here with Hawkeye Traders. I hope you’re having a phenomenal day.
I want to share with you a bold call I recently made and the outcome that followed.
This isn’t just about showcasing a successful trade, but rather about understanding the principles that led to this decision, which you can apply to your own trading strategies.
Setting the Scene
While trading LIVE with a group of traders, I saw a significant opportunity in the market.
It was around 10:55 AM on 7/30/24, just before I stepped out of the office for the day.
I shared my insights, suggesting that the NASDAQ and the S&P could continue to move lower based on the current market evidence offered.
Now, let me walk you through exactly what I saw, why I made this call, and the subsequent market movements.
The Analysis
Volume and Price Action
This isn’t about an ego stroke or boasting. It’s about leveraging 13 years of studying volume and price action with the assistance of Hawkeye Volume Based Tools.
These tools help in analyzing, interpreting, and creating expectations based on volume.
As I made my statement at 10:55 AM, here’s what the market looked like:
- Floor Formation: The price had formed a floor, failing to close below it initially, but eventually breaking through.
- Volume Dynamics: We saw an increase in selling volume, followed by a slight decrease, possibly due to profit-taking. However, there was no new significant buying volume, indicating a lack of aggressive buyers.
- Sellers Stepping In: With no new aggressive buyers stepping in, the sellers took control, leading to a significant price drop.
Execution and Outcome
At 10:55 AM, I told the traders that if the market couldn’t get back above the key level, it was likely to continue lower.
The evidence was clear: no new aggressive buyers meant the market would NOT go higher.
Here’s what happened next:
- Market Movement: From the point of my call, the market fell significantly. We saw a drop of around 1,576 ticks by the closing bell.
- Profit Calculation: This movement translated to approximately $7,880 per contract, at a $5 per tick value.
Key Takeaways
- Understanding Aggression: The market moves based on aggressive participants. Without aggressive buyers, the market can’t go higher.
- Volume Interpretation: Analyzing volume can provide insights into market intentions, helping you make informed decisions.
- Hawkeye Tools: Utilizing Hawkeye volume tools can significantly enhance your market analysis, making it more achievable to predict market movements.
Invitation to Learn More
For those of you who aren’t yet using Hawkeye tools or don’t fully understand the interaction between volume and price action, I’d like to invite you to a training webinar.
I’ll explain these concepts in detail and show you how to apply them in your trading.
You can join the webinar by clicking the link below. Bring a piece of paper and a pen, take notes, and feel free to reach out with any questions. Our team is here to help you!
Trading isn’t about being right all the time; it’s about understanding the market and making informed decisions based on evidence.
Trading can be a rewarding career once you master the necessary skills.
Understanding volume and price action provides clarity in a cluttered market, leading to consistent and profitable trading.
I am passionate about helping other traders achieve success, and I look forward to seeing you in the training webinar.
Click here to join the training webinar and start your journey towards mastering volume and price action.
Thank you for your time, and I look forward to seeing you succeed as a trader.
Happy Trading,
Anthony Speciale
Hawkeye Traders
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