Targeting Liquidity Above Prior Highs For Pre-Market Profits
- Anthony Speciale
- Jun 19, 2024
- 4 min read
Updated: Jun 21, 2024
Hey Trader,
A Timeless Assurance for Your Trading Journey
I hope this email finds you well. As you navigate the dynamic world of trading, I wanted to share a verse that has been a source of profound inspiration and strength for many:
"God is not human, that he should lie, not a human being, that he should change his mind. Does he speak and then not act? Does he promise and not fulfill?"
Numbers 23:19
In the ever-changing markets, it can sometimes feel overwhelming and uncertain.
However, this verse reminds us of a powerful truth: the reliability and unchanging nature of God’s promises.
Unlike human decisions, which can be inconsistent, God's word is steadfast and true.
As a trader, you understand the importance of making informed and calculated decisions. Similarly, we can trust that God’s guidance is always dependable and trustworthy.
When the markets are volatile and unpredictable, let this verse be a reminder that you can rely on a higher promise and a steadfast foundation.
Keep this assurance close to your heart, and let it inspire confidence in your trading decisions. Stay diligent, trust in your skills, and remember that you have a promise of unwavering support. Wishing you success and fulfillment in all your endeavors!
Be Relentless In Pursuit Of The Will
Which God Has Set Upon Your Heart,
Anthony Speciale
Targeting Liquidity Above Prior Highs For Pre-Market Profits
Hello fellow traders, Anthony Speciale here from Speciale Analysis. I hope everyone is having a wonderful day.
Today, I want to walk you through a recent trading setup that worked out exceptionally well, demonstrating the power of technical analysis and strategic trading.
Understanding the Setup
This morning, I executed a trade on light sweet crude oil, which quickly hit its target.
My higher timeframe analysis showed a clear trend of higher highs and higher lows, indicating a strong uptrend.
During the overnight session, the market formed a pattern that, although not a textbook head and shoulders, suggested a potential reversal.
The market tested the lows but failed to break lower, signaling absorption of selling pressure and likely reversal.
Key Levels and Market Liquidity
I identified a critical level at 80.63. Once the market closed above this level, it signaled that prior resistance should now be considered newly appointed support.
The market then formed a consolidative state and printed a significant candle at 0720 ET.
Although I wasn't ready to trade at that exact moment, I observed the market testing prior highs, indicating potential strength.
Notably, there was steady liquidity at $81.
Unlike transient spoofing liquidity, these standing orders indicated significant interest.
Understanding liquidity is vital as it acts like oxygen to a fire, fueling market movements.
Trade Execution
As the market approached the prior highs at 80.88, I anticipated a retest and possible breakthrough to the liquidity at $81. The market pulled back to the area around the 0720 ET. candle, an impulsive move that suggested a higher low was being placed.
I entered the trade at 80.72, with the plan to take partial profits at 80.88 and the rest at 81.
By 8:05 a.m., I was in the trade. By 8:45 a.m., I had closed the position, selling half at 80.88 for 16 ticks and the other half at 81.00 for 28 ticks.
The market's hesitation at 80.88 confirmed the significance of the level, but my plan was to target the liquidity at 81, which was achieved.
Managing Risk and Reward
I maintained a strict risk management strategy with a stop-loss at 80.67, risking only five ticks. The reward, however, was substantial, with 16 and 28 ticks profit, reflecting a solid risk-reward ratio. This disciplined approach is essential for long-term trading success.
Reflections and Insights
This trade was a perfect example of patience, planning, and execution.
I didn't initially plan to trade, but when the setup met my criteria, I didn't hesitate.
This adherence to my trade plan ensured a successful outcome.
Trading is not just about making quick profits but about making calculated decisions based on thorough analysis.
This morning's setup was a textbook example of trading with the trend, leveraging market liquidity, and maintaining disciplined risk management.
If you found this analysis insightful and want to learn more, consider joining the Speciale Analysis Family of Traders. We offer live trading sessions, daily market deliverables, and comprehensive swing trading ideas across various assets.
Our goal is to help you become the best trader you can be through experience and education.
Feel free to reach out via email, phone, or Zoom. I'm always available to discuss strategies, answer questions, and provide guidance. Let's trade smarter and profit together!
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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