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High Volume Dictating Support & Resistance Throughout Trading Session

Speciale Analysis

Hey Trader,

High Volume Dictating Support & Resistance Throughout Trading Session

Hello traders, Anthony Speciale here with Hawkeye Traders.

Today, I want to dive into a critical aspect of trading that often gets overlooked by many retail traders: the importance of volume in your trading strategy.

If you're not considering volume in your analysis, you are missing a significant part of the bigger picture.

Key Candles That Signal Market Movements

Let's start with a practical example. Recently, I placed a live trade based on two significant candles on my chart.

Candle One: 4:25 AM

At 4:25 AM Eastern Standard Time, we saw a break below the prior low of the session.

This break was followed by aggressive buying. What does this tell us? It indicates that buyers find this price level valuable and are stepping in forcefully.

When buyers become more aggressive than sellers, we see price reversals, and that's precisely what happened here.

This candle, showing the highest volume during the overnight session, marked a key reversal point.

Candle Two: Post-Reversal Resistance Break

Following the initial reversal, the next area to watch was the last high before the low was set.

When the market broke through this resistance with strong buying volume, it confirmed the buyers' commitment.

This second candle was crucial because it validated the strength of the buying interest and set the stage for a further upward move.

Forming a Trading Thesis

Understanding these key points on the chart allowed me to form a robust trading thesis. The process was simple yet powerful:

  1. Identify Significant Volume Spikes: The first candle with high volume at the session low was my initial signal.

  2. Watch for Resistance Breaks: The second candle, breaking resistance with strong volume, confirmed the bullish sentiment.

  3. Enter on Pullbacks: I entered my trade on a pullback to the area of aggressive buying, ensuring I was trading in line with the dominant market participants.


Executing the Trade

I entered the market right inside the pullback zone of the significant volume candle.

This strategy is part of my trading plan and is known as a pullback setup.

My entry was followed by taking profits as we revisited the prior high, protecting against potential reversals.

The final target was set at a significant round number, $81, where I took the balance of my trade profits off.

The Importance of Volume and Price Action

The key takeaway here is the synergy between volume and price action.

By aligning your trades with these high-volume areas, you increase your chances of trading with the dominant market force.

To make this approach work for you, focus on the following steps:

  1. Identify High Volume Areas: Look for candles with unusually high volume, especially at session highs and lows.

  2. Analyze Price Reaction: Observe how the market reacts at these levels. Does it break resistance or support with strong volume?

  3. Enter on Pullbacks: Use pullbacks to these high-volume areas as entry points, ensuring you are trading in line with the dominant market participants.

Trading with a clear understanding of volume and price action can significantly enhance your trading performance.

Whether you're day trading, swing trading, or position trading, knowing who is in control and aligning your trades accordingly is crucial.

I invite you to explore the Hawkeye Traders tools and resources. Our software integrates seamlessly with platforms like TradingView, NinjaTrader, and MetaTrader.

By focusing on volume and price action, you can build a more informed and effective trading strategy.

Let’s help you take the next step in your trading journey, whether you're a novice or an experienced trader.

Understanding and applying volume analysis is foundational for consistent success in the markets. God Bless, and I'll see you in the next video!

Happy Trading,

Anthony Speciale

Speciale Analysis

Anthony and Anna Speciale

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:

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