Quick Scalp At ReTest Of Double-Top Neckline
- Anthony Speciale
- Jun 27, 2024
- 4 min read
Hey Trader,
Steadfastness and Legacy in Your Trading Journey
I hope this message finds you well. As you continue to navigate the complexities of the trading world, I wanted to share a verse that offers encouragement and a reminder of the strength that comes from living with integrity:
"Surely the righteous will never be shaken; they will be remembered forever."
Psalm 112:6
In the often unpredictable and volatile environment of the financial markets, it's crucial to stay grounded and resilient.
This verse reassures us that those who act with righteousness and integrity will remain unshaken, no matter the challenges they face.
Your dedication, ethical practices, and unwavering commitment to your principles will not only help you stand firm during tumultuous times but also leave a lasting legacy.
As you make your trading decisions, let this verse inspire you to remain steadfast in your values and confident in your strategies.
Your integrity and hard work will ensure that you are not only successful but also remembered and respected in the trading community.
May this assurance of stability and enduring impact guide you in all your trading endeavors. Wishing you success and strength in your journey!
Be Relentless In Pursuit Of The Will
Which God Has Set Upon Your Heart,
Anthony Speciale
Quick Scalp At ReTest Of Double-Top Neckline
Hey there, fellow traders. Anthony Speciale here from Speciale Analysis.
I hope everyone’s having a phenomenal day!
I want to share an insightful analysis of a recent trade I executed in the crude oil market.
I’ll walk you through my entire thought process from beginning to end.
This should give you a clearer picture of how I approach the market, especially on days that start off less than perfect.
A Rocky Start
Let me give you a little backstory before we dive into the trade details.
Last night, a storm knocked out our power, and we had to rely on a generator.
We had cable when we went to bed but woke up with no internet connection.
So, it was a bumpy morning. I wasn’t fully dialed into the market until the afternoon, after getting everything reset once the power and internet were restored.
The Trade Setup
Although this program is more swing trading-oriented, I also conduct intraday trades with folks who trade live with me daily.
After getting everything up and running, I noticed a quick opportunity in the market.
Here’s how it unfolded:
High of $82.04: This was a significant target for us.
Lower High at 11:30: The market placed a lower high at 11:30 AM.
Interior Double Top: This was evident with a neckline at the low of the candle printed at 10:25 AM.
At 11:40 AM, a Hawkeye Wide Bar on high buying volume opened and closed lower than previous candles, indicating some concern. However, I focused on the neckline break and its retest, particularly a candle at 12:50 PM that highlighted trapped buyers.
Execution and Analysis
When the candle printed at the neckline, I hit the sell market button. This was a quick in-and-out trade.
Here’s why it stood out:
Trapped Buyers: Significant imbalance of trapped buyers in the high of the candle.
VWAP Interaction: I took profits quickly around the session VWAP level.
Quick Decision: This trade was either going to work quickly, or it wasn’t. The risk was minimal, with an entry at 81.54 and a stop at 81.58.
Visual Analysis
I'll include an image in the blog post to show you the footprint chart where these trapped buyers were evident.
Understanding these nuances is crucial for making informed trading decisions.
Key Takeaways
Here are a few important lessons from this trade:
Not Every Trade is a Home Run: Sometimes, small, quick profits are all you need. This trade didn’t pay the mortgage, but it was profitable enough for a nice dinner out.
Adapting to Market Conditions: Despite a disrupted morning, I adapted quickly once I saw an opportunity.
No Bias Trading: It’s important to trade what you see, not what you believe. I waited and watched the market for 30 minutes to understand the current situation before making a move.
Identifying Key Areas
Identifying key areas, such as lower highs, double tops, and necklines, can significantly enhance your trading strategy.
The drop in buying volume at session highs and subsequent selling volume further validated my trade.
Higher Time Frame Context
Looking at higher time frames is essential.
On the daily and weekly charts, crude oil was stuck between $80.80 and $82.40.
Recognizing this range helped frame my intraday decision.
This quick trade exemplifies the importance of being prepared, adaptable, and focused on the market’s signals.
Even a brief disruption didn’t deter me from executing a profitable trade.
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, 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.
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