Re-enter an Existing Trend the Hawkeye Way

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Re-enter an Existing Trend the Hawkeye Way

In today’s article, let’s take a look at how to trade Forex based on Hawkeye volume-based trading principles. And in particular, let’s consider the case where we missed the initial entry and are looking to re-enter an existing trend a little later.

Re-Enter an Existing Trend

In Forex, we always begin with the Hawkeye Fatman indicator. It shows which currencies are relatively strong or weak with respect to all the other currencies. Below is a chart of today’s Fatman showing that the EUR is weak and the USD is strong. Based on this setup, we know that strength cycles constantly, and usually returns to fair value or to the opposite extreme. So in our charts, we look for a probable reversal of trend direction to start our trade.

Fatman chart

So the Fatman started to show a reversal setup around 0600, and we saw that the initial trade entry on our charts came around 0630, meaning we missed that initial entry! Bummer! What do we do?

Good question!

In our Hawkeye training room, we teach students to study VOLUME, and that is where we find our answer.

Volume is the Key

On the EURUSD chart below, we see the initial entry we missed, marked by the first green up-arrow. Since we missed the initial entry, all we need to do is wait for the pull back on the volume, which signifies buying weakness. When buying strength returns, the trend continues and signals our re-entry.

EUR 5min Chart

As you can see, there are several more opportunities to get into this trend if you missed any of the other previous entries.

The Hawkeye Perspective

As an advanced tip, use the Hawkeye Roadkill indicator. It identifies EVERY volume pull back on a trend, compares it to the longer time volume and signals the best time to enter or re-enter the existing trend. It is a fabulous tool that I would not trade without. But I wanted to make sure you knew how to spot a valid re-entry by just using volume.

I teach this and many other principles in our weekly Wednesday training room. So please come along and join the action.


Join me in the next free LIVE Hawkeye Demonstration Room held every Wednesday at 9.30am EST US. You will learn more about volume and volume price analysis and see more examples and live trade setups. It is open to all.  Click this link for more information or to join us in class.

Learn to trade the Hawkeye way.

Randy Lindsey
Hawkeye Traders, LLC

Gold At A Crucial Point Now

Last week we saw monthly Gold (GC) hitting a critical monthly trendline, as shown by the chart below. This trendline in Gold has been in place since 2011.

Historically, whenever Gold hits this trendline and fails to break it, the downtrend continues.

GC Monthly Chart

If we couple that with the US Dollar index (DX), the DX monthly chart below shows the current trend of weakness in the US Dollar.

However, we see this trend hitting support, with declining volume. If the DX were to continue lower, we need to see volume advancing, not declining.

DX Monthly Chart

Also, the Hawkeye Fatboy chart below shows that daily Gold is overbought and should start to lose strength, as it cycles back to fair value. This will be accelerated if the US Dollar starts to strengthen, and then Gold will begin to resume its longterm downtrend.

Hawkeye Fatboy

Looking at the daily Gold chart below, notice the volume weakness already beginning. Therefore, watch the daily GC chart for the current uptrend to be broken, with confirming selling volume.

GC Daily Chart

Hawkeye Perspective: Gold is at a critical point now, so watch for the daily Volume on Gold to see if strength or weakness will prevail during this time.

Remember, green buying volume shows strength, and red selling volume shows weakness. If the US Dollar starts to strengthen, this will accelerate the potential for a down move in Gold.

 


Join me in the next free LIVE Hawkeye Demonstration Room held every Wednesday at 9.30am EST US. You will learn more about volume and volume price analysis and see more examples and live trade setups. It is open to all.

Click this link for more information or to join us in class.

Learn to trade the Hawkeye way.

Randy Lindsey
Hawkeye Traders, LLC

Why Trading More Produces Less

Greetings Hawkeye traders, this is Dr. Kenneth Reid from HawkeyeMindset.com . We all want to improve our trading. What’s the best way to accomplish that?

Lazy Traders?

It’s not a question of working harder. There are no lazy traders. In fact, we have the opposite problem: screen time seems to increase way beyond what we originally expected. (Just ask your spouse.)

Unfortunately, screen time isn’t directly correlated with an improvement in our bottom-lines. Why not?

Like any profession, trading well depends on a proper mindset and the execution of specific skills. . . skills that need to be practiced.

Raw screen time doesn’t necessarily build these skills. . . or any skills, for that matter. In fact, excessive screen time can tire you out, zone you out. . . and keep you from developing the real-time skills you need.

It’s a paradox: trading too much is the most common trader problem that’s not even recognized as a problem. Check out this comment from the owner of a popular futures prop shop:

“Our average profitable trader is active less than 3 hours a day. Our average struggling trader logs more than 6 hours a day.”

And I know traders who are in front of their screens 12 hours a day or more!

Sure. . . it’s natural to try harder when you are not getting the results you expect. And it’s natural to expect your results to be proportional to your effort. And in some fields of endeavor these expectations are correct.

But trading isn’t one of them.

Here’s why.

The typical struggling trader operates with an idiosyncratic mix of biases, goals, predictions, snap judgments, impulses and intuitions combined with an equally eclectic set of technical tools.

Although you may swear loyalty to a particular method, such as Hawkeye, when push comes to shove in live trading, many traders quietly change the game.

In this ad hoc situation, the number of unique discretionary combinations available to enter, manage and exit any one trade… probably runs into the thousands.

When the pressure is on, consistency becomes elusive. So elusive that our results can be much worse than chance. Seriously. It will seem like you are missing virtually all the good trades and taking virtually all the bad trades!

I know it sounds impossible, but I hear about this often and I’ve experienced it myself. It causes traders to profoundly mistrust themselves and feel almost cursed.

The good news is that the solution is within everyone’s reach.

Good trading relies on a small group of attitudes and abilities that are the opposite of the idiosyncratic mix we have, by default, in our heads.

Good trading is:

  1. Unbiased,
  2. process orientated,
  3. well-planned,
  4. disciplined, and sometimes
  5. counterintuitive.

A Trading Mindset

This is the mindset needed to trade successfully. We call it the Hawkeye Mindset. (This is how Randy trades, right?) Without it, you are subject to your own random discretionary ideas, impulses and behavior.

Mindset is crucial, but it’s not enough. We also have to master the specific skills regarding entering, managing and exiting trades. Mindset needs to be practiced. . . and so do the skills.

But frankly, most traders never actually practice. . . they just analyze and trade.

Either they feel they don’t have time to practice, they don’t think practice is important, or they think trading itself is practice. But it’s not.

Truly effective practice has three essential ingredients: It’s…

  1. Specific,
  2. Measurable, and
  3. Progressive. . . which means the challenge increases incrementally over time.

I call this “Conscious Practice.” Conscious practice creates hundreds of small breakthroughs, which generate measurable macro improvement. (And they generate dopamine, too. . . so you will enjoy practicing.)

This isn’t just a theory. . . this is the training method that resulted in 90 new records at the 2016 Rio Olympics.

And if you start applying it, you can break through your own limits and set new performance records on a regular basis.

So here’s a quick quiz:

Conscious Practice is ____________, ______________, and ____________ .

Ready to start?

Step 1: Pick a specific attitude or skill you want to get better at. Get very specific.

Step 2: Set measurable goals and track your progress using market replay or practice in a live market in Simulation mode.

Step 3: As you make progress, progressively raise your criteria for success.

Key Point: This recommendation may shock you. . . if you are not yet profitable. . . spend 90% of your time practicing conscious skill development in Simulation Mode. . . and 10% trading live. As you notice your mindset and skills improving, gradually increase the proportion of live trading.

If you are ready to start your own program of conscious practice, download the free video below, which is part of the low-cost Hawkeye Mastermind coaching program available on HawkeyeMindset.com

Hawkeye Mindset Mastermind – Does Practice Make Perfect?


Join me in the next free LIVE Hawkeye Demonstration Room held every Wednesday at 9.30am EST US. You will learn more about volume and volume price analysis and see more examples and live trade setups. It is open to all.

Click this link for more information or to join us in class.

Learn to trade the Hawkeye way.

Randy Lindsey
Hawkeye Traders, LLC

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