$11.1K Trading Crude Oil From Key Overhead Resistance Reversal Through VWAP's
- Anthony Speciale
- Sep 13, 2024
- 4 min read
Updated: Sep 13, 2024
My goal is to motivate, educate, inspire and make a positive impact on your trading. Whether you're brand new to trading, or you've invested years into the craft -
I invite you to experience the Speciale Analysis Family of Traders difference!
Hey Trader,
Finding Strength in the Ultimate Source
In the ever-changing world of trading, it's easy to feel overwhelmed by uncertainty. But no matter the market's twists and turns, our true source of strength remains constant.
Remember, as you navigate the highs and lows of trading, your ultimate help comes from the Creator of all things.
Trust in Him, and let that assurance guide your steps with confidence!
Be Relentless In Pursuit Of The Will Which God Has Set Upon Your Heart,
Anthony Speciale
$11.1K Trading Crude Oil From Key Overhead Resistance Reversal Through VWAP's
Happy Friday, traders! I hope you've had a productive week, filled with opportunities in the markets.
As we wrap up this week, I want to dive into a recent trade I executed in the Crude Oil market, focusing on risk management, trend trading, and how reading the market’s evidence can lead to successful outcomes.
Analyzing the Setup
This morning, Crude Oil pushed into a higher timeframe resistance level, which immediately caught my attention.
For those new to trading, resistance levels are price points where an asset historically struggles to move higher. These levels often signal potential reversals or pauses in price.
On my top chart, I noticed several signals that the market was running into this resistance and likely to face difficulty continuing its upward movement.
I had my eye on a pullback, specifically targeting the $69.55 level, which I believed represented a key price area for ideal profit taking.
At this point, the market was consolidating, showing signs of indecision.
But a few candles forming in quick succession confirmed my suspicion that we were about to see a move lower.
These minor details—the consolidation and the follow-up candle patterns—were crucial evidence that validated my plan to short the market.
When the market started to flush through the volume-weighted average price (VWAP) levels, it was clear that the trend was shifting in my favor.
Executing the Trade
My initial target was $69.55, a level that took some time to hit.
We saw some consolidation before that, but once the market began to move, it was decisive.
The trade continued to push through both VWAPs, eventually reaching $69.55.
My secondary target was $69.30, but as the market started to reverse, stopping me at $69.65.
Despite not hitting my final target, I was able to secure a sizable profit.
By the time I closed my position, I had locked in over $11,000 in net profits—before 10:00 AM.
It’s a great example of how proper planning and market interpretation can lead to significant gains!
The Importance of Evidence in Trading
When it comes to trading, intuition isn’t enough. Every trade needs to be backed by concrete evidence.
In this trade, the resistance level, consolidation, and candle formation provided the evidence I needed to justify my decision.
For newer traders, it’s essential to lean on proven, evidence-backed strategies until you build the confidence and experience needed to make more aggressive, advanced trades.
Trend following is one of the most reliable strategies for newer traders, as it’s easier to identify and generally offers a higher probability of success.
Aggressive Reversals are NOT for Everyone
While I often take more aggressive trades—such as reversals off resistance or support—this is something I recommend only for traders who have advanced market reading skills.
Reversal trading can be highly profitable, but it also comes with increased risk.
Before attempting these trades, make sure you’re comfortable reading order flow, understanding market structure, and can back up your trade ideas with solid evidence.
For newer traders, stick with the basics: identify trending markets, hop on the trend, and ride it until your target is reached.
Build your consistency and discipline with this method first, and only then should you consider evolving into more complex trade setups.
Evolving as a Trader
The evolution of a trader is a journey.
We all start by following the trend, learning the fundamentals of risk management, and building a strong trading foundation.
As we gain experience, we begin to trust our intuition more, taking on more aggressive and complex trades.
But remember—each trade must still be backed by evidence.
This morning’s Crude Oil trade was a perfect example of the power of evidence-based trading.
Even though I didn’t hit all my targets, the trade was still highly profitable due to my preparation and risk management.
For those of you still working on your consistency, focus on identifying clear trends, executing with discipline, and always backing up your trades with evidence.
Over time, you’ll naturally evolve into more aggressive strategies, just as I did.
Stay informed, stay focused and stay disciplined ! ! !
Thank you for reading, and I look forward to seeing you in our next session . . .
God bless, and have a wonderful day!
If you have any questions or need further guidance, please don't hesitate . . . info@specialeanalysis.com May the markets be ever in your favor!
Happy Trading,
Speciale Analysis
About the Author:
Anthony Speciale is a seasoned market analyst with over 13 years of experience trading. Through his platform, Speciale Analysis, he offers in-depth market analysis, interpretation, and expectations designed to help all types of traders, at every skill levels reach their full potential.
Analysis, Interpretation & Expectations
Day, Swing & Position Trade Analysis
Daily LIVE Market & Orderflow Analysis
NOTE: Trading involves significant risk, and it's essential to approach it with a well-defined strategy and a disciplined mindset. This blog post is intended for educational purposes and should not be considered financial advice. Always conduct your own research and consult with a professional before making an financial decisions. For further risk related information, please refer to: www.specialeanalysis.com/disclaimer
Comments