Using the Fatman to get Fat. There has been a lot in the Hawkeye Skype room this week on the many ways to interpret the HAWKEYE FATMAN currency strength indicator, and many comments that many traders find it hard to hold a trend and come out far too early. So lets look at a simple strategy.
Fatman 90 Min Chart
This is set to 90 minutes (3 times the speed of my fast chart) as i am trading off the 30/60/120 min charts, which gives many low risk trade entries. Look where I have placed the magenta and cyan arrows…both at extremes, showing weakness in the Aussie dollar (red) and strength in the euro (green) which equates to a low risk entry.
EURAUD 30 Min Chart
Where the first cyan arrow is the Hawkeye volume roadkill cyan dot, indicating a buy. The other 2 time frames; 60 and 120 min charts, are both displaying green buying volume and green trends with rising trend dots; so BANG entry.
Now to the difficult part…staying in the trend. THIS IS WHY YOU HAVE TO LEARN 6 WAYS A MARKET MOVES.
Look as the trend unfolds, there are two areas of congestion indicated by the blue boxes, and each time after a pause it breaks out and continues trend run. We knew that the bias was to the upside as both the 60 and 120 minutes are in solid uptrend, so hold tight…the market is just pausing.
Now look at the last several bars and you can see the trend dots starting to crunch up…this is consistent with the Fatman showing the AUD and EURO approaching the oversold and overbought area, so time to exit trade.
By understanding “6 ways a market moves” keeps you safe and stops you mentally hijacking yourself. By using the Fatman to get fat, you save yourself from lean market times.
We demonstrate this and many other methods in our live demonstration room held every Wednesday, and this is open to everyone. Click this link for more information or to join us in class.
[The cyan and magenta arrows are for illustration only and do not form part of the software]