As you may know, every Wednesday I run a free live training session for Hawkeye members and non-members alike.
It’s a great opportunity to ask questions and see exactly how I use the Hawkeye tools on the live edge of the market…
And I love the format because I’m able to demonstrate setups, strategies and techniques as they present themselves in real time.
This past Wednesday, I got to show one of my favorite strategies for finding profitable trades.
I call this one the “Money Bounce.”
Here, let me show you what it looks like:
What you’re looking at here is the Russell index futures (ticker RTY).
The top left corner of the screen is the 3 minute chart…
Then you’ve got the 6 minute chart on the bottom left, and the 12 minute on the top right.
Now, the bottom right corner is the 60 minute chart with the Hawkeye Zones overlaid.
Those aqua and blue-colored horizontal bars you see are the Zones (more on that in just a second).
Now take a look at the 3 minute chart on the top left…
You can see that price was moving up until it hit resistance and reversed.
But when you look at the 60 minute chart overlaid with the Zones, you get a much better understanding of why price responded the way it did.
See, the color of each Zone bar tells you how many times price has interacted with that particular level.
So when we see price action moving toward an aqua bar, we know that it’s the first time price has reached that zone…
And because price typically interacts with a new zone 3 or more times before breaking through, the aqua zone represents the highest probability of a reversal.
In essence, the Money Bounce strategy is a reversal trade strategy.
When we see price moving toward an aqua Zone, the strategy is to take the opposite direction of the trade, risking to just outside the zone…
With the potential reward being the next zone in the opposite direction.
Now the great thing about Hawkeye Zones is that they can be applied to any type of chart, with or without any other software loaded…
Whether time chart (minute, hourly, daily, weekly) or specialty chart (tick, renko, share, range).
But the truth is that you’ll get the most from the Zones when using them in harmony with Hawkeye’s proprietary suite of volume-based indicators and tools.
Now if you’ve been on the fence about joining the worldwide community of Hawkeye traders…
Then I’d like to invite you to give our Professional Package a try for two weeks…
For just $1.
Of course, if you have any questions about becoming a Hawkeye Trader you can always call our VIP Client Services at (888) 233-8598!