Cumulative Volume Delta Divergence Reversal At Double Top
- Anthony Speciale
- Jun 24, 2024
- 4 min read
Hey Trader,
Finding Strength and Purpose in Your Trading Journey
I hope this message finds you well. Today, I wanted to share a verse that has been a source of inspiration and guidance in both my personal life and my trading journey:
"Speak up for those who cannot speak for themselves, for the rights of all who are destitute." - Proverbs 31:8
In the fast-paced world of trading, it's easy to become solely focused on numbers and profits. However, this verse reminds us of a higher calling – to stand up for others and make a positive impact in their lives.
As retail traders, we have the opportunity not only to improve our own financial futures but also to support and uplift those who are less fortunate.
Just as we analyze charts and identify trends, let’s also be vigilant in seeking ways to contribute to the greater good. Whether it’s through mentorship, charitable giving, or simply sharing knowledge, our actions can create ripples of positive change.
Let's strive to trade with purpose and integrity, using our skills and successes to speak up for those who cannot speak for themselves. Together, we can make a difference.
Wishing you continued success and fulfillment in your trading journey!
Be Relentless In Pursuit Of The Will
Which God Has Set Upon Your Heart,
Anthony Speciale
Cumulative Volume Delta Divergence Reversal At Double Top
Hello, traders! Anthony here from Speciale Analysis. I hope you're having a fantastic day. Today, I want to walk you through the thought process I employed during our morning session, specifically focusing on light sweet crude oil.
This is the market I personally trade, though we also cover NASDAQ, S&P, and Gold in our LIVE Futures Analysis room.
Morning Market Overview
This morning, the indices were somewhat detached, making them less than ideal for trading. Gold was bound within its volume-weighted averages (VWAP's), offering limited potential. However, crude oil presented a promising setup.
During the overnight session, crude oil exhibited a strong uptrend, identified by multiple touches on a trend line, indicating a bullish bias. As I observed the market early in the morning, we faced resistance around 5:45 AM to 6:30 AM at a previous high.
Morning Routine and Market Entry
I usually start my day with a cup of coffee and some quiet time with my wife. By the time I joined our live session at 8:00 AM, we were testing this prior high again.
I noticed trapped buyers at the 5:45 AM and 8:00 AM candles, indicated by cumulative volume delta divergence (CVDD).
Analysis and Expectations
I shared with our LIVE Futures Analysis room participants that if we failed to close above the 5:45 AM high, we could see a pullback.
The targets defined were:
80.80
80.65
80.35
I also mentioned that there was liquidity at 80.40, which could cause a bounce.
Trading Execution
As expected, we saw a pullback to these levels, providing profitable opportunities:
From the 5:45 high to 80.80, we had about 28 ticks.
To 80.65, there were 43 ticks.
To 80.35, it was around 72 ticks.
When the market opened at 9:00 AM, we tested the VWAP's. Despite strong buying volume, the candle closed at 50-60% of the candle move, indicating weak buyers.
We saw absorption at the candle's top, leading to a significant drop to 80.35.
Taking Profits and Final Thoughts
I was satisfied with my trades for the day.
I added to my short position at the 9:00 AM candle print, confident in a further push.
We identified that breaking the 80.23 lows could push towards $80.
However, we saw a rotation and ended the day near session highs.
Emphasizing Process Over Profits
In my experience, the most successful traders are those who focus on the process rather than profits.
The trade plan should be executed consistently, and profits will follow.
My aim in the live analysis room is to help traders grow into the process, as the trader's mindset is often the variable determining success.
I hope you found this analysis recap insightful.
If you're interested in joining our live analysis sessions, where we cover the NASDAQ, S&P 500, Crude Oil, and Gold Futures markets.
The Speciale Analysis Family of Traders thrives on commitment to the process, and I'm here to share my journey to help accelerate yours.
Thank you for being here. God bless, and I'll see you in the next video.
If you have any questions or need further guidance, feel free to reach out. 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.
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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
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