One of the biggest challenges intraday traders face each day is determining what time frame to trade. That’s why I developed Hawkeye’s Gearbox and Gearchanger.
These world-class innovative tools show you, day-in and day-out, the absolute best way to trade the markets using tick charts.
So in this article, I will walk you through how these tools work to give you much greater insight into what’s really going on in the markets and how to trade them more profitably.
On the right hand side of the chart below, notice that there are four labels. First, there’s 5816 which represents the slowest tick speed trade you should currently consider using.
Next, there’s 2908 (marked in yellow), which is the medium time, followed by the blue, which is the fast time. And finally, the cyan is the ultra-fast time frame you should use for scalping.
As an illustration, just as a cyclist has to change gears when they approach a hill, we as traders need to change gears as market conditions change. For example, look at the spikes on the above Gearbox chart. Notice how at one point, it goes up to over eight thousand ticks and then, drops right down to under 5000 ticks.
Obviously, as market conditions change like this, our approach needs to change, because we must trade in harmony with the speed of the market. And that’s what the Gearbox does. It shows us what tick speed to use. And the best part is that this works on all trading instruments including forex, stocks, and commodities.
Now, Gearbox is coupled with a second tool that I call the Gearchanger, which is displayed in the multi-color chart below.
When the GearChanger is blue, you should be trading in the fast tick speed. When it’s yellow, it tells you to trade the normal speed. And when it’s red, it’s telling you the market has slowed down, so you should trade at a slower speed.
Let’s continue with an example of using Gearbox on the EURUSD currency pair.
See how the tick speed fluctuates a lot each day? And when we couple this with our EURUSD Gearchanger chart below, you can see how it tells you exactly what tick chart to trade in harmony with the market as it speeds up and slows down. As you learn more about these tools, you’ll come to realize how powerful these two tools can be in your trading.
Also, if you are a stock trader, these two tools can also help your trading. Here’s an example using them on Netflix (NFLX).
Notice the amazing amount of volatility on the chart! If you were just trading a time chart, you would have no visibility into what was going on with all this time volatility. Using a 5 minute chart would be far too fast when this is at the top around 900 ticks. And, it would be far too slow when you are at the bottom about 89 ticks.
And next, here is the Gearchanger on NETFLIX which throughout the day would tell you which chart to look at and which chart to trade from:
So, in conclusion you can see how powerful these two tools are. Every day and throughout each day, they reveal what is the best tick speed to trade with. If you haven’t been successful in intraday trading yet, this is the key that you have been looking for, especially when coupled with Hawkeye Volume.
Now, all of this (and much more) is demonstrated in our Wednesday room by my colleague Randy Lindsey.
So, I cannot encourage you enough to come along to the Wednesday room.
Please contact us at [email protected] for any questions you might have about using Hawkeye Indicators in your trading!