$10,650 PROFIT, Identified LIVE: VWAP Re-Test Into Support Level
- Anthony Speciale
- Sep 23, 2024
- 5 min read
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Hey Trader,
Nourishing Your Growth
Just as a newborn craves milk for nourishment, our spiritual and personal growth requires feeding on the right sources of wisdom and strength.
In trading and in life, we must continually seek what builds us up and strengthens our foundation.
As you pursue success in the markets, remember to nourish your soul with truth and wisdom, allowing it to guide your decisions and fuel your growth.
Wishing you strength and clarity on your journey!
Be Relentless In Pursuit Of The Will Which God Has Set Upon Your Heart,
Anthony Speciale
$10,650 PROFIT, Identified LIVE: VWAP Re-Test Into Support Level
Welcome, traders! Today is Tuesday, September 24th, 2024, and I want to walk you through a detailed breakdown of the live trade I took this morning.
This trade was executed on crude oil, and I'll be sharing my thought process, key levels, and how I managed the trade.
Whether you're a seasoned trader or just getting started, I believe there are some valuable insights here that can benefit your approach to the markets.
Key Market Setup: Crude Oil's Double Top and Breakdown
Early on, the market formed a double top, which is a key reversal pattern, signaling potential downside if the market fails to break higher.
This double top was clearly visible on the chart, and I identified a significant resistance level (represented by a thick yellow line on my screen) that the market struggled to push through.
The market danced around this level for a bit, but eventually, it failed to make a higher high.
This was my signal that we could see a breakdown, and if price fell below that key level, we’d likely see further downside pressure.
The next target on my radar was the 71.20 level, which I had marked as a key support level.
The Breakdown: How I Positioned My Trade
Once price broke below that key resistance, I waited for a retest of the session VWAP (Volume Weighted Average Price).
This is an important level for determining intraday value, and the market tends to react around it.
I got short in the vicinity of the VWAP and placed my stop just above the most recent candle that showed a bit of pushback from buyers.
This allowed me to keep my risk small while still giving the trade room to develop.
My first profit target was at 71.45, and I was planning to take more profit at the 71.20 level, where I anticipated stronger buying interest to come in.
Managing the Trade: Profits, Protection, and Exit Strategy
As the market moved lower, it hit my first profit target at 71.45, and I took partial profits.
After testing the 71.20 level, the market rebounded slightly but remained below the VWAP, which told me there was still room for further downside.
Once price hit the 71.20 level again, I decided to take the remainder of my profits.
It’s important to remember that overtrading can often lead to giving back profits, so I chose to stick to my plan and call it a day.
Avoiding the Chop: Why One Good Trade Was Enough
If you look at the market earlier in the morning, you’ll notice it was pretty choppy.
There wasn’t much directional clarity, and I prefer to avoid trading in such conditions.
Choppy markets increase the likelihood of getting stopped out, and without a clear trend, the probability of success decreases.
It wasn’t until we broke down through that key support level that I felt confident there was going to be continuation to the downside.
Once I had that confirmation, I was ready to take action.
The trade setup aligned with my plan, and everything unfolded according to the risk parameters I had set.
Today was a great example of that. I executed the trade, managed it properly, took profits, and was done.
There’s no need to force additional trades just because the market is moving.
Overtrading often leads to poor decision-making and unnecessary losses.
The Importance of Trade Discipline
One of the key takeaways from today’s session is the importance of discipline.
If the market isn’t offering a clear setup or direction, I don’t trade.
Whether you’re seeing losses due to market chop or struggling to find a good entry, it’s crucial to know when to step back and wait for the right opportunity.
I was patient today, waiting for the market to define a direction.
Once it did, I identified where the aggressive players were in the market using the footprint chart, which shows order flow.
The footprint chart is an excellent tool for seeing where buying and selling aggression is occurring, and it helps pinpoint low-risk, high-probability entries.
When I saw the breakdown and identified where the aggression was coming in, that’s when I made my move.
Why Less Can Be More in Trading
I found a spot I liked, executed the trade according to my plan, protected myself with a well-placed stop, and took profits at my target levels.
I didn’t overtrade, and I didn’t stick around trying to squeeze out more from the market.
By sticking to a single, well-calculated trade, I was able to hit my profit target and walk away from the screen for the day.
This is the kind of approach that can lead to consistent profitability over the long run.
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.
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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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