Classic Volume Accumulation – get ready for breakout

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Classic Volume Accumulation – get ready for breakout

Copper futures traded at the highest level since June on Monday and are now showing classic accumulation getting ready for an upward breakout.

Let’s look at the charts:

Weekly Chart

trade copper weekly chart

At point 1 there is a wide bar down shown in magenta on the price indicating above average volume shown as the yellow dot on the Hawkeye Volume indicator below.

The market then continues down but at point 2 goes sideways into congestion. The yellow dot below the price at point 2 is a Hawkeye pivot which acts as support and to push the market up.

At point 3 a second pivot occurs which is higher than the previous pivot (point 2). This is a strong sign of strength. Also note, green buying volume came in showing for that week there was buying volume — all confirming a potential breakout.

Daily Chart

trade copper daily chart

This clearly shows buying has commenced and is in an uptrend. At point 1 the Hawkeye Roadkill indicator, which I have set to three days, places a cyan dot indicating a trade entry and the Hawkeye Heatmap indicator has turned bright green indicating all trend speeds are positive.

The Hawkeye Perspective

Be patient until the weekly chart goes long which should be at this week’s end if this rally is confirmed.

 

Learn why Hawkeye Pivots are so powerful

I often get questions on how to interpret Hawkeye Pivots (the yellow dots on the price bar).

As a general rule, when you see a pivot, it suggests the market has reached a temporary peak/low, which means that for the next three, five or seven bars it is likely to go against its trend or to indicate an exhaustion or turning point of the existing trend.

Lets look at the charts:

The chart on the left (daily) shows where the entry to the short side was triggered (Red down arrow) confirmed also by the weekly chart on the right (Red arrow down). A short trend is identified by the Hawkeye Trend’s red trend dots.

Now lets look at the Pivots:

On the daily chart (left) prior to the red arrow, there was classic congestion with the market moving between pivot high and pivot low and then BAM! a breakdown (shown by magenta Hawkeye Widebar), which was triggered by the pivot on the weekly chart (right) that is just before the trend turns red. All volumes agreed so it was a very low risk entry. But as I write there is a new pivot being set up on the daily and also on the weekly which could terminate this down move. Watching the Hawkeye Volume will give you the information to support this possible trend termination.

Aug 10 pivots

The Hawkeye Perspective

The Reserve Bank of Australia has just dropped rates to their lowest, 2 1/2 percent, which could be the fundamental news the markets required to terminate this move, so if short, look for Hawkeye Volume to show you congestion and exhaustion, and look to the pivots for the market direction.

Crude Oil Goes Bullish – Don’t Miss Out

The crude oil market ($CL_F) has been rather volatile lately, with the past few weeks showing signs of strength in the overall economy. The stock indices have pushed into higher price areas pulling crude right along with them. It’s nice to see some of the commodities coming out of the “dog house”, after having been beaten up for most of the year.

However, at Hawkeye we like to take a step back and look at the bigger picture because sometimes you can be so close to the action (the trees) that you can’t recognize where you are (the forest). And looking at volume is the EDGE that brings clarity back into the picture. Let’s look at the Monthly Crude Oil chart, highlighted by Hawkeye Indicators.

Crude Oil ($CL_F) Monthly chart showing an initial green trend dot change.
Crude Oil ($CL_F) Monthly chart showing an initial green trend dot change.

Take a look at the CL Monthly chart above… it is the first time we have a green trend signal in almost two years. Notice the trend of buying volume coming into the end of this rather lengthy consolidation area (white trend dots). The level of volume on the last four months has consistently been higher than the volume in any other month during 2013… a good indication that buying volume is building and accumulation is taking place. Now, let’s take a look at the Weekly CL chart.

Weekly Crude Oil ($CL_F) chart.
Weekly Crude Oil ($CL_F) chart.

Again, we see a nice bullish trend building (green trend dots), supported by buying volume (green volume bars). The Heatmap (bright green area below volume) is bright green too, indicating momentum has become strong. And finally, let’s look at the daily chart.

Crude Oil ($CL_F) daily chart.
Crude Oil ($CL_F) daily chart.

The bullish trend that started early July 2013 (shown by the green trend dots) on the daily has slightly corrected, but is showing signs of renewal. The Trend dot will change from white to green, indicating a resumption of the long trend shown in both the Monthly and Weekly charts. This will generate a Roadkill signal and should be enough to turn both the longer-term (weekly) volume green and the daily Heatmap from dark green to bright green.

The Hawkeye Perspective

With the overall commodity markets in “major correction” mode, it’s important to keep watch on the ones that show us that strength is coming back into play. By looking at the Hawkeye Volume, the only leading indicator of price action and market sentiment, we clearly see bullish sentiment returning to the crude oil market. Taking advantage of harmony in the charts when all three timeframes agree is very rewarding.

Learn these typical end-of-trend volume patterns to become a proficient trader

This week’s example is the coffee commodity which has has been in a downtrend since October of last year.

In the weekly Chart 1, there was a wide bar shown in magenta and four weeks of tight ranging bars (cyan arrow) unable to break under the dotted line of support.

In the daily Chart 2, it reversed to the upside and then tested the market with a push down (red arrow) on average volume. This does not show a new entry but rather a termination of the dominant weekly downtrend. The last bar is a test down on average volume. Classic end of trend pattern.

trend run pattern

The Hawkeye Perspective

The market should now consolidate at these levels and when you see green volume on the weekly chart (providing the daily chart keeps in uptrend) this will be the commencement of a new trend run to the upside. In other words, the market at the moment is in its accumulation phase.

Learn this perfect low-risk volume setup

A key factor in successful trades is finding those with the lowest risk entry. In the Japanese yen example below, I have shortened the timeframe, as I understand a lot of users use these timeframes particularly for Forex and intraday trading.

The cyan arrow on all three charts shows that the volume has changed to green indicating where the professionals are buying. The Hawkeye trend has gone long (green on all timeframes) and the Hawkeye Heatmap positive on all timeframes.

Low-risk Volume trade setup.
Low-risk Volume trade setup.

Hunt for these perfect setups—they apply to all markets and all timeframes.

Good hunting,

Nigel

Volume is King When Trading Gold.

Some weeks ago, Hawkeye alerted you to the fact that although all the pundits were talking gold up, the Hawkeye Volume algorithm was showing weakness. Let’s look at the charts.

Weekly Gold Chart
Weekly Gold ($GC) trend.

Chart 1 Weekly Gold

Hawkeye has been short since last November at $1,684 (see red arrow above).

Daily Gold ($GC) chart showing possible entries using Hawkeye.
Daily Gold ($GC) chart showing possible entries using Hawkeye.

Chart 2 Daily Gold

The three red arrows show where you could have entered fabulous trades using the Hawkeye Roadkill indicator. With gold in a strong downtrend, the Hawkeye Roadkill identified three possible entries on April 13, May 17 and June 18 that would’ve generated substantial profits!

The Hawkeye Perspective

The market is in a major downtrend. The next major resistance price level is $1,020. Expect to see a major price move to the downside on high volume followed by a narrow bar with light volume.

Remember: markets don’t continue down on light volume so we must wait to see the above profile then expect an explosive up move form this heavily oversold position.


Hawkeye Education

Trading any market without education on the six ways the market moves is like walking into a casino with a stack of dollars – you’re relying on luck rather than a methodology.

Learn the “Six Ways a Market Moves,” the key to being a great trader, at the next Special 2 1/2-day Hawkeye Seminar in Santa Ana, CA on September 21-23, 2013.

Click here to express your interest in the seminar.

There’s money in trading soybean futures.

Just as you can extract oil from soybeans, you can extract money from the market trading soybean futures.

Soybean futures have had a large price move to the upside over the past two weeks. The price is currently just below strong resistance at 1350 and is displaying classic congestion. (See the yellow dotted lines).

There is a Hawkeye pivot (yellow dot) pushing the market down and both daily and weekly Hawkeye Volume algorithms are showing selling (red arrow).

Daily soybean chart.
Daily soybean chart. Congestion is shown by the dotted yellow lines.

The Hawkeye Perspective

If you are long, lighten up your position. If you are in no trade, wait for the congestion zones (yellow dotted lines) to be broken… but if they are broken, it must be with red selling volume on the daily and the weekly charts, showing that the bias is to the downside.

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Hawkeye Education

Trading any market without education on the six ways the market moves is like walking into a casino with a stack of dollars – you’re relying on luck rather than a methodology.

Learn the “Six Ways a Market Moves,” the key to being a great trader, at the next Special 3-day Hawkeye Seminar in Santa Ana, CA in September.

Click here to express your interest in the seminar.

 

Hawkeye Live Training Room Video Updates

The Free Hawkeye Live Training Room is held every Thursday from 8am – 11am US EST. We have an archive of past Training Room recordings available in case you wish to view them offline with some fresh popcorn and your iPad. Please use the following link to view the video. All future presentations will be posted in this same location. 

View the Recorded Video Now!

Please let me know if you have any questions, and I hope you enjoy the presentation. 

Good trading, 

Randy Lindsey 
Hawkeye Traders

Get Ready for a Major Yen Trade

The volume on the Japanese Yen futures contract (JY) last week was the highest weekly volume in over six years. The last time the market had volume anywhere near this size, a significant rally that lasted over five years resulted. This could be a sign of major institutional involvement, with major hedge funds making moves in this market. Be patient and wait for a bullish setup to take advantage of — this could be a major move.

Lets look at the charts:

Chart 1 (daily)

Japanese Yen (JY) futures contract daily chart showing a potential reversal.
Japanese Yen (JY) futures contract daily chart showing a potential reversal.

From Chart 1, we see very high stopping volume (blue highlights) and evidence that the market is now being accumulated (green volume bars.) What should happen next? Expect a test to the downside narrow range down bar with high volume and the close in the top 50 percent of the bar’s range.

Chart 2 (weekly)

JY weekly chart ... notice the huge buying volume.
JY weekly chart … notice the huge buying volume.

From this weekly chart, we see buying volume is coming in (see the cyan arrow). The price bar is moving up and if there is a close above the weekly Hawkeye stop (the red cross), a new uptrend will develop.

Chart 3 (monthly)

JY monthly chart showing potential pivot bottom. Expect to see 3, 5, or 7 bars of reversal as a potential move.
JY monthly chart showing potential pivot bottom. Expect to see 3, 5, or 7 bars of reversal as a potential move.

The monthly chart shows high selling volume, but we now have a potential Hawkeye pivot (at the cyan arrow). If an isolated low or pivot does form, we expect it will push the market to the upside for a minimum of 3, 5, or 7 bars.

The Hawkeye Perspective
In conclusion, all three timeframes are manifesting stopping volume from the downtrend that has been in place on the monthly charts since the 29th of February 2012. This market is highly oversold and the Hawkeye Volume algorithm will lead the way, showing the commencement of a new uptrend. However, if the low that occurred on the 13th of May 2013 at 06:52 is taken out, it will revert back into downtrend.

Now YOU can get this Hawkeye edge at the next Hawkeye Seminar in Santa Ana, CA, 21-23 September 2013.

How to Get Emini Trend Runs

Trade of the Week

In this week’s example I have turned the stops off and made the trend dots white. I am using the tick values generated by the Hawkeye GearBox, a unique tool that gives you the correct tick speeds to trade every day.

I can now see how the market is trading using Hawkeye’s “Six ways a Market Moves.” It is vital that you have this knowledge when you trade. No other educator gives this amazing edge!

Now YOU can get this Hawkeye edge at the next Hawkeye Seminar in Phoenix, AZ  in October.

In the chart below,

  1. At the red arrow you can see the trend dot is lower than the previous trend dot and the close of the bar is less than the open.
  2. At the white arrow, you can see a small magenta dot under the white arrow. This is generated by the Hawkeye Roadkill indicator showing an entrance to the downside.
  3. At the cyan arrow, you can see the trend dot is flat and the close is above the trend dot, and green buying volume has come in… exit for a potential 12.5 point move.

emini-060713

The Hawkeye Perspective 

In conclusion, avoid trading any market without knowing the “Six Ways the market Moves!”

It’s the key to being a great trader, and now you can get in on the action at the next Hawkeye Seminar in Phoenix in October.

Click here to express your interest in the seminar.

Hawkeye Live Training Room

Advance your trading skills and see how the Hawkeye indicators handle all the market conditions like the one shown above:

  • breakouts
  • chop
  • trends
  • consolidation

Live training every Thursday from 8:00 – 11:00 am EST.

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This new series of training webinars continues until the last Thursday in June 2013.

Click here to register for our Live Training Room now — it’s FREE.

Want even more valuable education? Browse archived Hawkeye Training Room Videos here.

Good trading!

Nigel Hawkes

Where will the dollar index go next?

Trade of the Week

Although the monthly and weekly are just showing trend entry to the upside, the daily chart below shows a trend congestion entrance. Why? Because the live trend dot has gone flat (red arrow) and the close was under the current bars open and the trend dot.

So what do we do look to the left of the chart for the last pivot or phantom high (yellow dot) and draw a dotted line representing the congestion high. We are now waiting within five bars for an isolated low or phantom low to give us the bottom of the congestion range.

dollar index chart trading

The Hawkeye Perspective

In conclusion, until this has taken place there is too much risk to trade the dollar index long, but when the congestion parameters are broken then a trade setup will occur either to the up or down side.

Trading any market without education on the six ways the market moves is like walking into a casino with a stack of dollars – you’re relying on luck rather than a methodology.

Learn the “Six Ways a Market Moves,” the key to being a great trader, at the next Hawkeye Seminar in Phoenix in September.

Click here to express your interest in the seminar.

 

How to trade Google stock with little risk.

Less than three months after it hit $800, Google ($GOOG) topped $900, and is now on the brink of becoming the first tech stock to hit $1,000 a share. And with a slew of product launches in the works, the company’s reputation is getting a boost as well. Though we’re not ready for the risk of getting behind the wheel of their driverless car, we’ve got some low risk trades to reveal.

Trade of the Week
Google stock was extremely profitable when trading the shorter (daily) timeframe, only in the direction of the long term (monthly/weekly) – and with little downside risk.

Hawkeye has been long since October 2010! As you can see by the cyan arrow on the monthly chart.

The Hawkeye tools have shown a low risk long on GOOG since October 2010!
The Hawkeye tools have shown a low risk long on GOOG since October 2010!

The Hawkeye Perspective
Only take longs on your chosen faster timeframe (daily or weekly) when the price goes against the monthly then returns in the same price direction.

The cyan arrows on both the weekly and daily charts indicate when to enter with a minimum amount of risk.

Want to learn more while you watch Hawkeye live in action? Sign up for our FREE Live Training Room. What have you got to lose?

Don’t fall for the Apple hype… yet.

If you’re fueled by high expectations of Apple stock, Hawkeye is here to deflate the Apple-hype balloon.

While the iPhone maker has seldom reported negative figures in a decade, this week, Apple revealed typical congestion and a pause in downtrend.

For there to be a new weekly uptrend, the stock would have to break above $466. Refer to the following chart for the continued discussion:

$AAPL monthy chart shows narrow bars on low volume - an indication of accumulation.
$AAPL monthy chart shows narrow bars on low volume – an indication of accumulation.

Point 1
On this particular day, the daily shows declining volume which translates to stopping volume in the existing weekly and monthly downtrend.

Also, the daily trend dot is rolling over showing lack of momentum.

Point 2
The weekly trend does not show advancing volume, therefore negating a probable uptrend.

Point 3
The monthly chart shows narrow bars on low volume; this normally indicates accumulation which will manifest on the faster timeframes as it develops.

In conclusion, there is too much risk to take a new long till increased buying volume occurs on the weekly chart.

Wait for a low risk entry when the daily and weekly indicate a new uptrend or short when the daily resumes in the direction of the weekly and monthly trend, both low-risk entries.

Three smart ways to exit a trade.

Do you stay with your profitable trades as long as possible hoping for the trend to continue to make your profits even larger? Do you tense up when you have to exit a profitable trade?

Here are three exit strategies to help you exit your trades with ease:

  1. Stops (waiting till the Hawkeye stop is touched or crash barrier breached)
  2. Levels ATR (average true range)
  3. Grabba (for fixed profit targets)

Where to exit is more important than where to enter, but the majority of traders in my experience don’t pay enough attention to exits as they should. Hawkeye Traders has not only developed precise entry methods, but also unique and well defined exit strategies.

AAPL weekly Chart with ATR Levels
Chart 1: $AAPL weekly chart showing ATR Levels management rules.

Using the Hawkeye Levels ATR on weekly stocks are phenomenal. Here are the indicator settings used for Chart 1: set the look back period to 14 and the ATR profit and stop factor to 1.5. The rules are that once the bar has closed above (if long) or below (if short) any level, the exit is a close, NOT TOUCH, of the previous level, or a touch of 2 levels back. This covers sudden reversals, so as Chart 1 illustrates, there was no time following a close below any level where there was a corresponding close above the previous level or a touch of 2 levels back. But now at the point labeled “1”, we have price trying to close above level 5, after closing below level 6… if at the end of this week it does close above level 5, the exit would have taken 5 ATR out of the market.

$AAPL weekly chart 2
Chart 2: $AAPL weekly chart showing Levels ATR management rules.

In Chart 2, I show a “losing” trade… but it demonstrates 2 methods to exit.  The first exit method you can see at the point labeled “1”, where there is a close under the zero line (the entry point) after previously closing above level 1. The second exit method is the Hawkeye stop… you could have exited the trade when price closed below the “+” mark 2 bars back from point 1. But please note it was nearly a scratch trade… the Hawkeye methodology protected you at either exit point you could have selected.

Intraday $ES tick chart
Chart 3: Intraday $ES tick chart showing Hawkeye Levels ATR management.

For intraday $ES trading (Chart 3), I set my Levels ATR to a period of 14 and a profit/stop factor of 1.25. See how this enabled you to take 3 ATRs from this move, as it closed above level 4, then closed below level 3, as shown at the point labeled “1” Chart 3.

$ES intraday tick chart with Hawkeye Grabba
Chart 4: $ES intraday tick chart using the Hawkeye Grabba trade management rules.

Using the Hawkeye Grabba allows you to set the levels at fixed price points. For example, say you want levels at every 1 point on the $ES (Chart 4)… so the Grabba settings are 4 ticks ($ES moves in .25 so 4 = 1 full point), and I set the stop multiplier to 1.25 (exactly the same rules as Levels ATR). To exit, follow the same exit rules described for the Levels ATR, or exit at predetermined profit levels as your trading plan dictates. Like the Levels ATR, the Grabba graphically shows you profit targets and exit levels for your specific exit strategy.

While there is no perfect exit strategy, the Hawkeye Method enables you to exit in strength and reduce the risk that the trade will turn against you if you are in a winning position.

Catch the bigger part of the trend with the Hawkeye Levels ATR, or the Hawkeye Grabba!

Trade of the Week – Understanding Roadkill, a Low Risk Entry.

This week I want to review the basic setup I used for our trade of the week. Looking at the intraday ES market, we begin with the Hawkeye Gearbox – a unique indicator exclusive to Hawkeye Traders. Every trading day, the Gearbox calculates and gives us the exact tick speed to trade the market… so you are always trading in harmony with the market vibration. Shown in Chart 1 is a picture of the Gearbox. A great deal of technical analysis goes into every calculation… we do the heavy work for you, and display the results.

Hawkeye GearBox
Chart 1. The Hawkeye Gearbox is a unique indicator that gives us each day the tick speed to trade the market so you are always trading in harmony with the market vibration.

From the Gearbox, we see 4 primary speeds to use throughout the trading day… ultrafast (aqua), fast (blue), normal (yellow), and slow (orange for futures/equities and red for Forex).  For today’s charts, I will refer to the yellow speed (3588 ticks) and the orange/red speed (7176 ticks), and you should see that my charts are set to these tick speed settings.

roadkill entry
Chart 2. Conservative Roadkill entry.

The yellow time frame, which is the dominant time frame, shows a cyan dot below the red bar, indicting a Roadkill entry.  I am often asked why it did not come sooner in the trend, but we are wanting trades where the risk is low, and therefore the close of a bar to trigger roadkill has to be greater than the open, and in the top 50% of the range. This condition occurred at the cyan dot, confirming our conservative entry. Without having to understand the full breadth of technical analysis behind the trade setup, the Hawkeye uses an intuitive color system to easily identify entries. When everything lines up, the entry is confirmed.

 

pivot low
Chart 3. The slow time fame should never be ignored.

Always look at the orange/red time frame (the slowest) and never trade against it. It shows a pivot low (the yellow dot).  A pivot will “push” the market up 85% of the time as we are in an established uptrend. This indicates a pull back and reversal back into the dominant trend… which equals a low risk entry! Know your tools and trade with confidence.

Next week, I will highlight and demonstrate where to take profits.

Good trading,

Nigel

Everyone went crazy over Gold, but not Hawkeye!

With the crisis in Cyprus unfolding, every pundit and novice commentator was calling gold to new highs. However, the Hawkeye system was in opposition, as the only true leading indicator — volume — did not confirm. The Hawkeye Volume indicator was built on Volume Spread Analysis, and is quite complex… but we made the display very simple and intuitive, using only three colors to identify the presence of buying, selling or neutral volume in the market.

The power of Volume Spread Analysis is revealed in Gold.
The power of Volume Spread Analysis is revealed in Gold.

 

Refer to the chart above for the discussion that follows:

1. Although the daily went into an uptrend (green trend dots),
2. notice there was no confirmation of either green buying volume or green trend from our unique Roadkill indicator, showing us what the weekly time frame was doing… neutral volume and red down trend.
3. A pivot low (yellow dot) with 2 bars of buying volume pushes market up 3 bars in an overall down trend.
4. LOW RISK ENTRY: a pivot yellow dot formed, and neutral volume followed by selling volume pushes market down, and it closed down $25.30 on the week.

Warning:
The weekly volume from the previous week was green, but the close was less than the open showing weak conviction. At the end of the week, April 12, 2013 was a widebar (twice average true range x 20 bars). The close was in the bottom 40% of the range. This confirmed the Hawkeye weekly trend that has been place since November 2, 2012.

Remember the Hawkeye widebar rule: we now expect the market to consolidate hereuntil there is a weekly close lower than this widebar.

This is the power of Volume Spread Analysis!

Hawkeye Live Training Room Videos

The Hawkeye Live Training Room is held every Thursday from 8am – 11am EST. We have an archive of past Training Room recordings available in case you wish to view them offline with some fresh popcorn and your iPad. Please use the following link to view the video. All future presentations will be posted in this same location. 

View the Recorded Video Now!

Please let me know if you have any questions, and I hope you enjoy the presentation. 

Good trading, 

Randy Lindsey 
Hawkeye Traders

Oil continues to trade in congestion

oil futures chart
January WTI Oil Futures – Daily Chart

January oil futures closed marginally higher yesterday, closing the oil trading session at $87.38 per barrel, having touched an intraday high of $87.89 per barrel, before ending the oil trading session just 10 cents per barrel higher. The current lack of direction for crude oil has been a feature of many markets over the last few weeks, as commodities in general trade in a consolidation phase as we move towards the year end, with the price congestion for oil clearly defined by the pivots above and below this current range.

To the upside, we have two isolated pivot highs, just below the $90 per barrel level, and below, two isolated pivot lows in the $85 per barrel price area, which define the limits of the current congestion phase. The most recent of these was on Tuesday, which is pushing the market lower as a result.

The Hawkeye widebar of early November was never validated, suggesting a lack of downside momentum, with the market pulling back to trade within the spread of the bar and failing to continue the bearish trend, with the daily trend now in transition to white. The three day trend however remains firmly bearish, with no transition as yet, and supported by heavy selling volumes in this time frame.

On the daily chart buyers have returned, but counterbalanced by yesterday’s rising selling volume in a narrow spread day. The Hawkeye Heatmap is in transition from bearish to bullish, but has yet to complete the full cycle, and the key now for the oil market, is whether we see a break above or below the current congestion. For a move higher, the $90 per barrel level is now key, and if this holds then we can expect to see a retest of the deep price congestion in the $92 per barrel area and beyond. A break below the $85 region, could see the market sell of sharply again, and test the $78 per barrel level in due course. As always, Hawkeye will reveal the future direction of the market, using volume as the only leading indicator.

Silver price surges higher following breakout

September silver futures daily chart and market analysis
September silver futures – daily chart

The price consolidation that has been a feature of gold, has also been reflected in the silver market, with silver futures trading in a narrow range, testing $26 per ounce to the downside and $28.50 to the upside, and developing a strong area of price congestion as a result. Both these levels have been clearly defined by Hawkeye with a series  of isolated highs and isolated lows with the yellow pivots. The September silver futures contract ended the week at $31.37 per ounce.

The breakout finally arrived two weeks ago, and was in fact signalled early with the Hawkeye Roadkill delivering an aggressive volume entry, followed shortly after by a conservative trend entry, which was also coupled with rising volume on the daily chart, a strong sign that the breakout was valid. The three day trend duly followed suit moving from congestion into bullish momentum, giving added significance to the move higher.

With such a strong series of signal in place, and the Hawkeye heatmap confirming the bullish tone, we can expect to see silver prices continue to climb higher, and a test of the $36 per ounce region, last seen in March this year, now seems likely. With the strong platform of support in place, this is adding further to the bullish outlook for silver in the short to medium term, which reflects the picture for gold.

If you would like to see Hawkeye in action, simply click the link below to join one of our Free Live Training Rooms where we trade using the full suite of tools and indicators across all the markets.

September soy bean futures continue bullish trend

september soy bean futures on the daily chart
September soybean futures – daily chart

The daily soybean chart has been in a strong bullish uptrend since the breakout of late June and indeed has been one of our star performers in the soft commodities sector.The initial breakout on the daily soybean chart was first signaled by Hawkeye back in mid June and following a period of sideways consolidation finally breaking through the $1450 cents per bushel, which has since provided a strong platform of support for the surge higher.

Throughout July and August the commodity then consolidated in the $1550 to $1690 per bushel area, which was well defined  by the Hawkeye pivots to both the upside and the downside.  The next leg up in the move was once again confirmed by Hawkeye with a conservative volume signal which arrived five days ago on the daily chart and with bullish volume in both timeframes and a bullish trend on our three day chart, soybeans now look set to test the $1800 cents per bushel price point in due course. The September soy bean futures closed on Friday at $1764.50 per bushel.

If you would like to see Hawkeye in action, simply click the link below to join one of our Free Live Trading Rooms where we trade using the full suite of tools and indicators across all the markets.

Duke energy continues in bearish tone on daily chart

day trading stock chart for Duke Energy using hawkeye indicators
Duke Energy – daily chart using Hawkeye

Duke energy shares continued to move lower on Friday, closing the US trading session at $64.78, and adding further pressure to the move lower. The sell off in the stock was given additional momentum following the news that one of Duke Energies subsidiary companies in Florida, Progress Energy Florida, has recently filed requests to reduce customer bills which if approved would see the average household utility bill fall by approximately 6% from the first billing cycle in the new year.

From a technical perspective, Hawkeye delivered an early entry signal to the short side, with a conservative trend Roadkill signal on the 21st August with the stock trading at $66.87, as it finally broke below a short term area of price congestion. Since then both the volume on the daily chart and the 3 day chart have remained firmly bearish, although it is important to note that the daily volumes are light. However this could merely be reflecting the summer period, and a general lack of volumes in all markets, as with the US labor day now ahead we can expect to see a return to more normal volumes as traders return from their summer holidays.

With a red Heatmap and red trend in both timeframes, the stock now looks set to break lower, and indeed on Friday Hawkeye delivered a further confirming signal with a volume Roadkill re-entry signal, suggesting that the current bearish trend has some way to go. The key level now is defined by the Hawkeye pivot in the $64 region, and if this is breached, then we can expect to see this stock move lower to test the $62 – $63 level in due course.

If you would like to see Hawkeye in action, simply click the link below to join one of our Free Live Training Rooms where we trade using the full suite of tools and indicators across all the markets.

Apple stock fails to rise following victory over Samsung

Apple on the daily chart
Apple ($APPL) – daily chart using Hawkeye

Apple’s recent patent victory over Samsung appears to have little impact on its share price, which hit a high of $680 on Monday before ending the week lower at $665.24.

This temporary pullback was signaled on the daily chart with two Hawkeye isolated pivot highs, the first on Monday and the second on Wednesday with the share price moving lower as a result. Despite this, however, the overall picture for Apple remains bullish with the chart displaying a bright green Heatmap and a green Trend on the daily and three day chart.

However, it is important to note that over the last two weeks we have seen volume on the daily chart declining and, in addition, this has also appeared as no demand volume, i.e. white, perhaps giving us an early warning signal of a potential reversal for the stock. Indeed on Friday, on the daily chart, we also saw selling volume appearing for the first time since early August adding further weight to this view. This pullback may be only temporary in the longer term bullish trend, but once again Hawkeye is giving an early warning signal of a possible reversal for the stock in due course.

If you would like to see Hawkeye in action, simply click the link below to join one of our Free Live Training Rooms where we trade using the full suite of tools and indicators across all the markets.

Citigroup shares continue to grind higher

daily stock chart for citigroup on the us stock markets
Citigroup ( $C ) – daily stock chart

Despite the recent bullish momentum in equity markets in general, Citigroup shares have remained relatively flat over the last few weeks, and closed Friday’s US trading session at $29.71 having traded in a narrow range for much of the day. The price is now consolidating into a pennant formation on the daily chart, with the Hawkeye pivots once again defining the congestion area, with both pivot highs and pivot lows in much the same way as in early August, which duly saw the stock break out from a narrow trading range.

Despite the flattening of the Hawkeye trend dots on the daily chart, the three day trend continues to remain firmly bullish supported by strongly bullish volume, and a bright green Heatmap, all suggesting a breakout to the upside is imminent. The price action in the current area is also significant with a series of higher lows over the last few days, suggesting that we should see the stock break higher in due course. With the strong platform of support in the $28 price area, this should provide a springboard for a move higher for the stock in due course with a test of the resistance in the $32.50 region now looking likely as volumes increase following the end of the summer holiday period.

If you would like to see Hawkeye in action, simply click the link below to join one of our Free Live Training Rooms where we trade using the full suite of tools and indicators across all the markets.

 

Forecast for the daily VIX

VIX daily chart using Hawkeye indicators
VIX daily chart

Alongside the USD index, the VIX is another of those powerful indices, which gives clear signals of the broad market sentiment which ebbs and flows on a daily basis. The VIX is often referred to as the fear index, as it displays the market mood and whether market players are in ‘risk on’, or ‘risk off’ territory. It is based on the balance of calls and puts in the options market, and therefore gives a powerful insight into whether traders and speculators are protecting their risky assets with puts, or buying calls anticipating a rise in the markets. As a result the VIX works inversely to equity markets, with the VIX falling as stock markets rise and the VIX rising as stock markets fall. All of this is governed by the old adage, when the VIX is low it’s time to go ( or sell ). So where are with in today’s market.

The daily VIX has been falling steadily since the peak of early June when the index hit a daily high of 28, before falling steadily, to close on Friday at 17.47 following the statement from Jackson Hole by Fed Chairman Ben Bernanke. Equity markets had been hoping for some clearer statement from Mr Bernanke, but the only hint given was that the FED was ready an willing to ‘pull the trigger’. Whilst the Hawkeye daily trend has turned bullish, the three day trend remains firmly bearish, and despite the recent buying volume of the last few days, it is interesting to note that Friday’s bar closed with white volume of ‘no demand’, possibly hinting that the recent move higher for the VIX could now be running out of steam. Any further move higher will need to breach the 21 price region where strong resistance awaits. To the downside, the platform of support is now in place in the 13 area on the chart, and should this be breached then we can expect to see further strong gains for equity markets towards the end of the year, but as always, once the VIX moves into single figures, then  this will signal the end of the bull run, and a possible sharp sell of in due course.

If you would like to see Hawkeye in action, simply click the link below to join one of our Free Live Training Rooms where we trade using the full suite of tools and indicators across all the markets.

Where next for the YM mini Dow

The YM mini dow index on the daily chart
YM Mini Dow – daily chart

Like many of the major equity markets around the world, the mini Dow index has now reached a critical level, with the daily September contract closing at 13,079 ahead of the 3 day weekend with markets closed on Monday for the US labor day.

Since March, the index has flirted with the 13,200 level on several occasions and each time, Hawkeye has delivered an isolated pivot high, giving a clear signal of future weakness at this level. These pivots have now created a strong level of price resistance in this area, and if the recent bullish momentum is to continue, then we will need to see a clear break and hold above this level. Friday’s price action suggests something different in the short term however, with the first red trend dot appearing on the daily YM chart, coupled with a transition in the Hawkeye Heatmap from dark green to bright red, a strong bearish signal.

This change in sentiment has also been accompanied by rising selling volume over the last few days, once again suggesting a bearish move lower, with the isolated pivot high of Monday adding more weight to this analysis. All of this has been reflected in the VIX which has been rising strongly over the last few days, and with the FED sitting firmly on the fence for the time being, we are in for some interesting times for equity markets and the YM in particular as traders and investors return to the markets with a vengeance following the long summer recess.

If you would like to see Hawkeye in action, simply click the link below to join one of our Free Live Training Rooms where we trade using the full suite of tools and indicators across all the markets.

The USD index turns firmly bearish

dollar index daily chart using Hawkeye
USD index daily chart – September futures contract

Whatever the market you are trading, either as an investor or as a speculator, having a view on the US dollar is key to longer term trading success, which is where the USD index steps in. The US dollar is the currency of first reserve and underpins all the principle capital markets, and the dollar index gives us a clear view of dollar strength or weakness against a basket of major currencies. As a result the daily dollar index chart gives us powerful signals as to the future direction for all the major markets, since all are interrelated by the associated currency flows both from and to the US dollar.

Over the last few months, the USD index has traded in a relatively narrow range, testing the 85 price point to the upside and the 81 region to the downside on the September futures contract. Much of this sideways price action was as a result of the markets waiting for some clear signals from the Federal Reserve, and Ben Bernanke in particular on any future stimulus for the US economy, which is still struggling to recover, with stagnant growth and a mountain of debt, coupled with insufficient new jobs. Indeed, whilst the headline unemployment rate is quoted at around 9%, the true figure is far more shocking, and believed to be well into double figures. Conservative estimates put the figure nearer 20% rather than 10%. It is against this backdrop that the FED has been waiting to act, hinting at a further round of quantitative easing, or QE3 – printing money which are then converted to bonds.

Friday’s long awaited statement from Mr Bernanke failed to deliver any clear statements, but merely hinted at further stimulus, and that the Federal Reserve was ‘ready to pull the rigger’. This was sufficient to weaken the US dollar on the daily chart, with the USD index closing the session at 81.21, it’s lowest level for three months, as the index now tests this key support region which is now a critical price level.

Hawkeye has been giving us strong signals of this bearish sentiment as far back as the second week in August when an aggressive Roadkill signal appeared on the chart. Since then the daily trend has continued to remain red, with the three day trend now moving into white congestion and likely to follow suit shortly. With bearish volume in both timeframes and further confirming Roadkill signals, the outlook is bearish for the US dollar, and this is likely to be reflected in gains for all the major commodities, as well as strength in the related currency majors, bullish equity markets and outflows from bonds.

If the index breaks and holds below the 80.00 level on the daily chart, then we can expect to see the dollar index move to test the 78.50 lows of earlier this year in due course.

If you would like to see Hawkeye in action, simply click the link below to join one of our Free Live Training Rooms where we trade using the full suite of tools and indicators across all the markets.

Gold bullish following recent breakout

gold futures daily chart
Gold futures – daily chart

Gold bugs are once again happy this week, and the recent breakout for gold continues to signal further bullish momentum, with spot gold just failing to touch a high of $1700 per ounce this week for the first time since March, and finally closing the week at $1691.18. Gold futures ofcourse reflected this bullish momentum, and indeed Hawkeye gave us an early entry signal on the daily chart, with a conservative trend Roadkill. This upwards momentum was almost inevitable following the extended period of sideways congestion, and in particular with the strong platform of support in the $1550 per ounce region, clearly defined by the Hawkeye pivots, a level that was never tested.

The other contributory factor is of course the short term weakness in the US dollar which is likely as a result of the FED’s clear signal of further stimulus to the economy, and should this weaken the US dollar further, then gold prices are likely to extend the recent breakout into a longer term trend. As mentioned above, Hawkeye has already given us an initial entry signal, and with the Hawkeye Heatmap now bright green and coupled with buying volume in both timeframes, we can now expect to see gold prices breach the $1700 per ounce level next week, and extend gains further, with a bullish trend which could see the precious metal test the $1800 per ounce level in due course.

If you would like to see Hawkeye in action, simply click the link below to join one of our Free Live Training Rooms where we trade using the full suite of tools and indicators across all the markets.

Bearish tone for the AUD/USD

aud/usd daily forex chart
AUD/USD daily Forex chart

The recent bullish sentiment for the AUD/USD on the daily chart, appears to have run out of steam in the last few days, with the Hawkeye trend dots flattening in the 1.0600 region, and subsequently moving into a short period of sideways consolidation. The bearish tone that is now evident was also firmly signaled with the Hawkeye isolated pivot highs to this price area, adding further weight to the downside momentum. In the last 6 days, the Hawkeye trend has finally turned red on the daily chart, but the longer term 3 day trend remains bullish for the time being. However, on Wednesday this week, Hawkeye delivered an aggressive volume roadkill signal, the cyan dot, which coincided with selling volume in both timeframes and a change in the Hawkeye Heatmap to bright red.

The key support level is now clearly defined in the 1.0200 area, and if this is breached then we can expect to see a re-test of parity in due course.

If you would like to see Hawkeye in action, simply click the link below to join one of our Free Live Training Rooms where we trade using the full suite of tools and indicators across all the markets.

GBP/USD bullish on the daily chart

gbp/usd daily Forex chart
GBP/USD daily chart

Following several weeks of sideways consolidation the GBP/USD has now finally broken out this area of price congestion on the daily chart, and now looks set to move firmly higher in the next few weeks. To the downside, the support level was clearly defined at the 1.5400 region whilst to the up side, 1.5700 region had been tested on several occasions. The breakout finally occurred last week with the GBP/USD now moving towards the 1.5850 region and beyond, and with this strong platform of support now below, cable looks set to test the 1.6000 region, and if this breached then we should see a test of the 1.6250 region in due course.

The bullish tone for the GBP/USD was signaled by Hawkeye as early as the 14th August with a volume Roadkill signal signalling an aggressive entry, with the two day trend, still remaining in consolidation, confirmed with the white trend dots. Should this follow through, then this will add further momentum to the bullish picture, and with the USD looking set to weaken on the dollar index, as a further round of quantitative easing is announced, expect to see further strength for sterling in the  next few months.

If you would like to see Hawkeye in action, simply click the link below to join one of our Free Live Training Rooms where we trade using the full suite of tools and indicators across all the markets.

Scalp trade on the EUR/USD

eur/usd 2 minute chart
Hawkeye – EUR/USD 2 minute chart

Trading success in the Forex market depends on several factors, but staying in the trend to maximize the profit available is perhaps the most important, and this is where most traders fail. Staying in a trend requires discipline and the ability to manage the fear that we all have when a potential profit is on the table. Markets never move higher or lower in a straight line, and the key to success is to continue holding during these minor pullbacks and reversals, and this is where Hawkeye is so powerful, and the EUR/USD on Friday, gave us another excellent example, this time on scalping 2 minute chart for the pair. Indeed this was a trade we were watching during the London open, and just after 9am UK time, Hawkeye duly delivered a Roadkill signal for a bullish move higher.

This trade continued almost unbroken throughout the morning, with further roadkill signals confirming the trend, coupled with the Hawkeye Heatmap, and buying volume in both timeframes. The move finally ran out of steam almost three hours later ahead of the speech by Ben Bernanke, an eagerly awaited event with the markets expecting an announcement on a further round of quantitative easing.

If you would like to see Hawkeye in action, simply click the link below to join one of our Free Live Training Rooms where we trade using the full suite of tools and indicators across all the markets.

This Week’s Market Forecast – Risk On Returns!

Last week was the worst Thanksgiving week on Wall Street since 1941. Traders and investors reeled from the problems in Europe, as well as the collapse of the US budget deficit talks. The S&P 500 fell almost 5% on the week, closing just below the key 1160 level. The Dow was also down almost 5% over the week, and the Nasdaq was down by 5.1%.

The selloff really took place following the disastrous German bond auction which saw demand for the 10 year Bund at its lowest since the euro was created. Investors rushed to safety but redefined safety to exclude Bunds, moving instead into US Treasuries, UK Gilts, and Nordic Bonds.

With investors shunning German Bunds, the euro duly collapsed, particularly against the US dollar as the EURUSD tested the 1.32 level before moving back higher. As one commentator has said, this now appears to be the “apocalypse” trade – if German bonds cannot attract investors, and are no longer considered a safe haven, surely it’s now all over for the euro?

As always, nothing is quite as it seems and this may be a hasty conclusion – at least for this week!! The German 10 year bond auction may have gone badly but short dated German debt, known as Bubills, have never been in such high demand even with yields turning negative. In other words, if investors are willing to PAY to lend to the German government, it is hardly a sign of deep fear about Germany or even the euro.

Germany is not under threat – yet – but traders and investors are increasingly trading the euro and Germany together. Since September, the value of the euro against the US dollar has moved almost inversely to German credit default swaps. For those of you who may not know, a credit default swap is a measure of how likely a country is to default on its debt. In other words, traders and investors now care far more about whether they will get their money back than how much they can earn. This also makes them super-sensitive to any hint of danger which leads to much greater market volatility.

The start to this week’s trading has seen the market determined to shake off last week’s doom and gloom by seizing on record Black Friday retail sales and reports that French officials are pushing for a deal on Eurozone fiscal union. This has helped to reverse some of last week’s heavy losses with the US markets having their best days so far in November, with the S&P moving almost 3% higher, while on Monday all the DOW 30 stocks ended higher too.

It remains to be seen whether this swing higher will be maintained, not least because the $VIX – although managed to close lower on Monday – which is positive for equities, is still above 30. If the $VIX does manage to breakdown and move back towards the mid-20s then we could see a rally moving forward into December.

What is also interesting is that according to the latest CFTC data, net euro shorts have also fallen to 85k from last week’s 100k plus. In other words, we could be seeing a short term bounce higher for markets and even the start of a “Santa Claus” rally.

However, with this week’s fundamental news focusing on employment with the non-farm payroll (NFP) release, due on Friday, traders and investors need to take care. The first big number traders (and investors) should watch is the ADP release on Wednesday, a precursor to the NFP. Over a few months this once reliable release, which is based on payroll figures, has become a little less accurate in forecasting the NFP data two days later. Previously, it had always given traders a “heads up” on the Friday data but recently has become increasingly inaccurate in these volatile markets.

Wednesday’s forecast is for a number at 131k, up slightly from last month’s 110k. This is followed by Canadian GDP which is forecast to come in flat at 0.3%.

Thursday’s big number comes from China with the PMI, which is forecast to show a decline from last month’s 50.4 down to 49.8. So expect to see this reflected overnight in the Asian trading session should this number come in wildly at the odds with the forecast.

Thursday sees the unemployment figures in the US, which are forecast to come in flat but we also have the ISM data – an equivalent of the Chinese PMI. Traders and investors watch the ISM as it is considered a leading indicator of the economy because it is based on a large survey of purchasing managers of major companies. Any number above 50 indicates an economy that is expanding and below 50 suggests an economy that is contracting – so this is a very important number.

The week ends, of course, with the general razzamatazz of the NFP – a release which will affect all markets. The forecast is for an increase from 80k last time to 119k this time. This release always causes markets to over-react and traders should wait for any volatility to die down before entering any trade.

Hawkeye users can, of course, trade these markets with confidence because Hawkeye has been designed:

  1. To give traders the edge needed to succeed, as it gets them onto the right side of the market time and time again.
  2. To help traders control their emotions by giving them the confidence to stay in.
  3. To help traders control their risk by giving them clear signals of when to stay in and when to get out, thereby protecting your equity.

All of these things are vital in difficult and turbulent markets such as these! But how is Hawkeye able to do this?

Because Hawkeye has been created to exploit the power of the only leading indicator that traders and investors need, which is VOLUME. This is the foundation stone of Hawkeye on which all the indicators are built. So regardless of whether you are a day trader, position trader, swing trader, scalper, or any other kind of trader, VOLUME should lie at the heart of your trading.

As an example of why volume is such a powerful indicator, Nigel was discussing the gold price in Friday’s trading room. As many of you know, gold has recently had a significant pullback with many questioning whether the recent bull run has now ended for the precious metal.

Indeed in last week’s trading room, the monthly chart was showing some significant resistance as the volume has started to change from green to white (or neutral). In addition, the Hawkeye Heatmap on the weekly chart is also turning dark red – all signals suggesting we can expect to see a further pullback for gold. The daily chart also confirms this view with the short term trend now also turning red, selling volume clearly evident over the last week and any break and hold below the $1600 per ounce level could see a further decline for the metal in due course.

If you would like to see Hawkeye in action and how we use these tools ourselves, then simply sign up for one of the FREE Live Training Rooms! Become the trader you deserve to be!

Nigel Hawkes’ training room covers the commodity markets, where he explains his latest trades and how to select low risk, high probability trades before moving onto the day trader’s favorite instrument – the e-mini. Here you will be able to see the genius that is Hawkeye as Nigel uses the Hawkeye GearBox and GearChanger, two unique indicators to Hawkeye, which ensure we trade at the right speed and in harmony with the market.

To register for our Free Live Training Room each Thursday, Register Here! Forex begins at 8:00am, and Futures/Equities begins at 9:30am, Eastern US time.

FEAR: It’s Only a Four Letter Word – Don’t Let the Markets Spook You!

If there is one thing to say about the markets at the present, it is that they are deeply unpredictable. They swing dramatically from hope to fear and back again, catching both professional and retail traders alike. This type of market behavior inevitably leads to fear, frustration, and bad trading decisions which in turn can undermine a trader’s confidence and decimate his or her equity.

The good news is that this does not need to happen to you! The Hawkeye suite of tools and indicators will give you the confidence to not only get into a trade, but keep you in and hold that position as it develops for the longer term.

Our users certainly understand this power and beauty. Chris recently wrote to Nigel saying:

Dear Nigel,
Having traded your Hawkeye Package for the last two months, I write to inform you that I have doubled my equity from my Forex trading since using your system…………
Many Thanks
Chris
P.S. If any of your users wish to verify directly with me please feel free to contact me by email.

In fact, in order to succeed as a trader we only need three things:

 

  • We need an edge – Hawkeye gives us this edge, getting us on the right side of the market, time and time again.
  • We need to be able to control emotion – Hawkeye does this by giving us the confidence to stay in.
  • We need to be able to control risk – Hawkeye does this by giving us clear signals of when to stay in and when to stay out, therefore protecting our equity.

Just last week, we experienced a classic example of the power of Hawkeye! In the Friday morning training room, Nigel demonstrated all three of these principals.

Earlier in the week, equities had sold off sharply and everyone was expecting the week to end on a negative tone. Friday’s open on the S&P gapped up, but Hawkeye gave us the confidence to buy the market. Nigel captured his trade on the ES.D 5484 tick chart. The ES.D had opened, gapped up in anticipation of the ISM (which incidentally came in far better than expected) before carrying on up and ending the trading session on a very positive note.

Interesting Image

While Nigel was trading this market, I was simultaneously looking to take a trade on the Eurodollar. Once in, I too was rewarded with a fantastic trade, which I’ve captured in this week’s video for you:

Hawkeye Training Room Summary.

For those of you new to trading, the Euro is considered a “risk on” currency;  therefore as equity markets rise, we expect to see the Euro rising as well. This is exactly what we saw on Friday.

Needless to say, overnight in Asia and this morning in London, markets have returned to their more usual febrile state. At the time of writing this newsletter, the woes in the Eurozone are once again taking center stage with contagion now appearing to spread from the periphery to more solid countries such as France, Netherlands, and Belgium.

The fear is almost always reflected in the price of gold, which having moved sideways in the last two weeks, now looks set to re-test the $1800 per ounce region. Should this be breached, we may see a further run back towards the $1865 area and beyond.

There are other interesting markets and instruments to watch…In silver, the market has also been in sideways consolidation, which is strongly suggestive of an imminent breakout to the upside. The key price level here is in the $35.35 per region which would then provide a platform of support for a further leg up in the move. Meanwhile, the WTI contract has been in a fantastic uptrend since early October as it now begins to test the psychological $100 per barrel level where the sell-off in the summer was initially triggered.

All these instruments and markets can be traded with confidence using Hawkeye ChartTools. Not only does Hawkeye tell us when to get in, but it keeps us in and helps us ride out these difficult and volatile periods and finally gets us out at a profit, safely.

To register for our Free Live Training Room each Thursday, Register Here!  Forex begins at 8:00am, and Futures/Equities begins at 9:30am, Eastern US time.

Good trading and see you in the training room!

Minimize Risk Trading with the Hawkeye Fatman

In this week’s video, Nigel Hawkes shows setups that he looks for in the Forex market.  He shows how to take trades on a Forex pair with the least amount of risk while using the Hawkeye Fatman as a filter. 

Click on the image below to view this week’s video update:

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We demonstrate the same methods live in our Free Training Room. Come join the fun every week. To see the current schedule and register to attend, Register Here.

If You Are Serious About Being Profitable in FX, This Video is a Must

In this must-see video, Nigel Hawkes demonstrates an invaluable setup for daily FX trading, showing how to apply the Hawkeye Fatman and Gearbox in the best way.  Nigel also shows the course of the EMD trade after last Friday’s webinar closed.

Click on the image below to view this week’s video update:



We demonstrate the same methods live in our Free Training Room. Come join the fun every week. Learn more now.

Patience – A Key for Success

Nigel Hawkes warns against missing correct timing on trades and how to use the Hawkeye ChartTools, GearBox and GearChanger, at their full potential.  Be sure to have the patience to wait for perfect setups.  Think like a hunter and you will be trading for success.

Click on the image below to view this week’s video update:

We demonstrate the same methods live in our Free Training Room. Come join the fun every week. To see the current schedule and register to attend, Register Here.

Making Profits in Swing Trading – See How VSA Does It!

Continuing the Hawkeye Traders Education Series


Nigel Hawkes is a market leader and expert in volume spread analysis. Over the past 20 plus years he has studied and applied volume analysis to every market in every timeframe. What he has found is that when using volume and price together with the desired timeframe he can successfully interpret market direction. He took his findings and created a group of ChartTools that provide consistency to his analysis within the framework of an easy to follow methodology.

The Hawkeye Traders Methodology is designed to get traders and investors on the right side of the market. The important word in that previous statement is methodology. At Hawkeye we do not simply provide indicators to traders. We provide education and teach traders how to interpret the market through volume and price and how to trade it. This training includes how to read the signals, where to enter, where to exit for both profit targets and stops and what timeframes to use based off your style of trading. It does not matter if you are a scalper, day-trader, swing-trader or investor. The Hawkeye Methodology can be used to interpret the markets of your choice. Over the next few weeks we are going to show you through charts and our analysis how this is done.

In Series 1,
we covered BP. In Series 2, we covered Jim Cramer’s Picks. In that analysis there were multiple stocks currently trading in congestion. In Series 3, we had analyzed several stocks in congestion and showed how to avoid trades when congestion is present. This week, we will show how Volume Spread Analysis (VSA) will give you the edge in Swing Trading.  Join Nigel Hawkes, the world’s leading authority on VSA, as he teaches students all about VSA at the Hawkeye Seminar (27-28 Sep 10) in sunny West Palm Beach, FL. You do not want to miss out on this opportunity to learn directly from Nigel about the power of Volume Spread Analysis.

SERIES 4: Swing Trading Indices.

Making Profits in Swing Trading Using Volume Spread Analysis.


Time is a crucial element to trading. The smoother we make price and volume the easier it is to trade it. If we look at current Nasdaq and Russell 2000 charts we can see that on June 23, 2010, we have increasing selling volume on a bar that closed near its mid range. Volume Spread Analysis tells us that on this bar sellers came in strong and we should be expecting decreasing price movement.

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When the June 24, 2010 bar opened Hawkeye gave us a short signal on the Russell 2000 and the Nasdaq. Here at Hawkeye Traders we like to wait for both indices to confirm market direction increasing the probabilities for trend continuation.

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Towards the end of the downward push level 3 was triggered in both markets on July 1, 2010. On this bar the Russell closed near the midrange of the bar on increasing green volume and the Nasdaq closed in the upper quadrant of the bar on increasing green volume. This tells us that buyers are present in the market and a pullback should be expected. During this market condition we want to see sellers come back in the market to increase probabilities of downward trend continuation. On July 2, 2010, red volume came back in the market confirming sellers reentry. The bar closed near its low in both markets on increasing selling volume. In terms of Volume Spread Analysis this is a bearish signal.

To learn more about the power of Volume Spread Analysis, attend one of our 2 or 3-day seminars as we explain in detail how to interpret volume in terms of price spread. Do not miss out on the opportunity to learn this powerful trading technique.

 

Good Trading Everyone,

Hawkeye Traders
Understanding Price and Volume: Now that’s trading!!!

 

 

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