Let Volume Lead the Way in Your Trading Journey
- Anthony Speciale
- May 15, 2024
- 3 min read
Hey Trader,
Cultivate Your Trading Success with Timeless Wisdom
As we navigate the ups and downs of the trading world, it's crucial to remember the principles that guide us toward success. I recently came across a verse that resonated deeply with me, and I believe it can inspire and empower your trading journey as well:
"Every branch in me that does not bear fruit he takes away, and every branch that does bear fruit he prunes, that it may bear more fruit."— John 15:2
Just like in our spiritual lives, in trading, it's essential to prune away the strategies and habits that aren't yielding results. By focusing on and refining the methods that are working, we can cultivate greater success and bear even more fruit.
Here's how this wisdom applies to your trading:
Identify and Eliminate Ineffective Strategies: Cut out what isn’t working to make room for growth.
Refine and Enhance Successful Techniques: Continuously improve your winning strategies to maximize your profits.
Embrace Discipline and Patience: Understand that growth often comes through thoughtful pruning and consistent effort.
Remember, every challenge and adjustment is an opportunity to grow stronger and more proficient in your trading. Stay focused, stay disciplined, and let's bear more fruit together in our trading endeavors.
Be Relentless In Pursuit Of The Will
Which God Has Set Upon Your Heart,
Anthony Speciale
Let Volume Lead the Way in Your Trading Journey
Today, I want to dive deep into a concept that can revolutionize your trading approach: letting volume lead the way.
This isn't just a theory—it's a practice that I apply live and in real-time, resulting in profitable trades.
If you're ready to enhance your trading career, understanding the relationship between volume and price action is crucial.
Before we get into the specifics, let's establish one key principle: volume precedes price action.
This means that significant changes in trading volume often foreshadow price movements.
When you can interpret volume correctly, you gain a significant edge in predicting market behavior.
The Live Scenario Breakdown
Let's examine a live trading scenario to illustrate this principle in action.
The 7 AM Candle Analysis
At 7:06 AM EST, I noticed an ultra-high buying volume candle. The candle opened at .83 and closed at .87, a narrow four-tick range despite the heavy buying volume.
This discrepancy signaled that buyers were trying to push the price higher, but sellers were absorbing their efforts.
Recognizing Absorption and Market Direction
As the market attempted to move up, it became clear that sellers were absorbing the buying pressure. This absorption suggested that the market, which had been trending downward with lower highs and lower lows, was likely to continue in that direction.
The 8:30 AM Confirmation
By 8:30 AM, the market confirmed this hypothesis.
A new buying candle appeared, but it was only half the size of the previous high-volume candle and managed to close higher.
This indicated that buyers were still being absorbed. The market failed to break above the prior wick, reinforcing my belief that it would push lower.
Executing the Trade
Based on this analysis, I placed a short trade. Here’s the detailed breakdown:
Entry Point: After identifying the absorption, I entered short.
Risk Management: My total risk was 20 ticks.
Profit Targets: The first target was at the prior lows (60 ticks), giving a 3:1 risk-reward ratio. The trade ultimately moved 135 ticks in my favor.
The Power of Hawkeye Volume and Price Action
This trade, which I identified and executed live, was a prime example of how understanding volume and price action can lead to significant profits.
By analyzing these two factors together, you can develop a more accurate thesis about market movements.
How Hawkeye Traders Can Help
At Hawkeye Traders, we specialize in helping traders like you revolutionize their approach.
Our proprietary volume indicators paired with price action analysis enable you to interpret market signals accurately and profitably.
Ready to Transform Your Trading?
I encourage you to explore the resources we offer at Hawkeye Traders.
Click the links below to consume more content, and don't hesitate to reach out to me or my team with any questions.
Our goal is to equip you with the tools and knowledge to capitalize on trading opportunities effectively. Click here to embark on your Volume Mastery Journey
Happy Trading,
Speciale Analysis
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