So many market pundits are saying a market meltdown is here etc. Well, Hawkeye Volume does not lie. Today, I’m going to show you why looking at volume will tell you if the market meltdown is here or not.
Emini Daily Chart – Market Meltdown?
Look at the Hawkeye Volume circled at the bottom of the chart. It’s white for the last four days showing no demand, i.e. the sellers or buyers are not in control. A meltdown would show increasing red selling volume.
Then look at the price where the magenta arrow is. See how the price came up and touched the Hawkeye dot and then backed off – classic price action. Until the daily price breaks the last Widebar (magenta), price will go sideways, but with no advancing volume prices will remain in this range. Price needs high volume to commence a down trend or for the market to meltdown.
Emini Weekly Chart – Market Meltdown?
Last week red volume but not high volume. As on the daily markets require high volume to reverse.
And following 6 ways a market moves the Hawkeye Trend dot has gone flat, so we are in congestion waiting for the next isolated or phantom low to show congestion parameters.
Emini Monthly Chart – Market meltdown?
Interesting. Look where the dotted line and the magenta arrow are – a doji. If this month does NOT take out the high of doji a Hawkeye Pivot will form which could push the market down for 3,5,7 timeframes. Hawkeye volume knows if the market meltdown is real or not.
[The magenta arrows are for illustration only and do not form part of the software]
Join Randy 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.
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Final Note from Nigel
This will be my last blog post. I am retiring from the day to day work of Hawkeye and I have sold the business to my old partner Randy Lindsey. It has been wonderful to have been a small part of seeing so many of the ‘Hawkeye family’ not only go on to be such successful traders but also become close friends, and I am sure I will still attend the live seminars when invited.
When Hawkeye started back in the late 80s, I certainly never have thought there would be nearly 4,000 traders now using my volume algorithm. Please learn volume; 6 ways a market moves; find the right timeframe for you – as slow as possible; do a lot of work on your mental approach; money management/risk reward; and stop searching for the next indicator.
Farewell my friends and Good Fortune,