One of our members posted a great question this week inside the Hawkeye Traders Inner Circle.
Let me just say, I love interacting with our members there day to day…
But I also love seeing our members interacting with and helping each other.
The camaraderie is really something special…
And with so many traders of all different experience levels in the group, it’s an incredible resource for newer traders to learn and develop their skills.
OK, enough with the warm and fuzzies… back to the question.
Gregory asked, “What does tick speed tell you?”
This really is an important question, because tick speed is one of the most critical elements you need to understand as a trader.
See, tick speed is a measure of the actual number of trades taken per price bar.
Many traders don’t realize it, but tick speed is the most accurate way of measuring market momentum because it represents each change in price, irrespective of the time taken.
When you know the tick speed at which the markets are operating, it allows you to set your chart speeds in harmony with the changes in the markets.
That, of course, can lead to more accurate… and profitable… trading.
Now, that’s all great in theory…
But how do you actually measure and select the right tick speed in your day-to-day trading?
That’s where the Hawkeye GearBox and GearChanger come into play.
Here, let me show you an example from an E-mini futures chart:
On this chart, you can see 4 tick speeds that Hawkeye GearBox calculated on this particular day.
The three speeds annotated by the top three arrows show the optimal speeds you’d use to trade the E-mini in this situation.
Now, at the bottom of the chart you’ll see the Hawkeye GearChanger.
The GearChanger shows you the correct market speed at any given point during the day (where the bottom red arrow is pointing).
Because the tick speeds are color coded, you can quickly glance at the GearChanger to know exactly which tick speed you should be trading at.
So, when the GearChanger changes color — say, to orange — you know to trade off the appropriate orange tick speed, indicated by the GearBox value for orange (6,160 ticks in this case).
And there you have it…
A quick and dirty breakdown of tick speed, and how Hawkeye helps you trade at the optimal tick speed at all times.
Of course, the GearBox and GearChanger are included as part of the Hawkeye Professional Package…
But you can also get them as a stand-alone module to add to your Hawkeye Starter or Standard setup.