Some of the biggest obstacles traders face are:
1. Finding the right entries
2. Finding the best exits (stops and profit targets)
3. Understanding why a trade is not working
4. Identifying support
5. Identifying resistance
Hawkeye Zones help traders overcome each of these obstacles in some key ways…
Zones allow you to:
1. Clearly see where to enter
2. See clear exit points (stops and profit targets)
3. Know why the trade is stalled or reversing
4. Know where support is located
5. Know where resistance is located
The nice thing about the Zones is that they are color-coded supply and demand zones that automatically refresh and change as price interacts with them.
So, not only do you get to see things as support or resistance…
But you also get to see where to enter, where to exit, and even where to take profits all along the way.
It’s a way of looking at your charts that allows you to trade with more certainty and confidence.
But how do Hawkeye Zones work?
Zones keep track of key market volume and price action as price moves throughout time.
Basically it’s a data mining algorithm, which gives us an edge on the right side of the market to find support and resistance areas.
Inside the charts, these colors help us remember how many times price has tested and failed to break through at support or resistance.
Zones typically identify regions of significant volume activity.
Historically, these areas are where we see buyers and sellers step into the market.
In the present, we can use these fresh zones to establish support and resistance.
In the future, we can define where price is expected to go as supply and demand shift.
But that’s not all…
Time also plays a big role in Hawkeye Zones.
Any time that the market is open we need to keep track of the creation and destruction of price zone areas.
Zone levels can last for YEARS!
These levels can also switch between support and resistance:
Support & Resistance + Time = Supply & Demand
These are some of the things we are looking for in the zones to find where supply and demand are for a certain ticker:
- How long a zone has lasted on your chart
- Time of day when price interacts with the zone
- Higher time frame confluence
If you are a serious trader, you know this information is gold!
It’s one of my few “secrets” to success, because when you are able to put these zones to use, the game becomes easier.