Volume Trading Essentials For The Everyday Trader

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Volume Trading Essentials For The Everyday Trader

I hope you’re having a great week so far!

Last week, we started looking at the fundamentals of volume trading with Hawkeye.

I showed you how the Hawkeye Volume, Radar, and Paintbar indicators work to give you a foundational view of the interaction between volume and price…

And how you can begin using them to make better informed decisions no matter what instrument you’re trading.

Well, today I want to dive a little bit deeper into the next layer of indicators that work synergistically with the Volume, Radar and Paintbar…

And when combined, give you everything needed to use Hawkeye’s proprietary 3-Step Method for entering and exiting trades with precision.

Now, last time I told you that the Hawkeye Starter Package includes the Hawkeye Volume, Radar, and Paintbar indicators — the three most critical, foundational tools in the Hawkeye stable.

But the Starter Package also includes two other important tools that help keep you safe from fluctuations in the market and choppy price action.

I’m talking about the Hawkeye Pivots and Hawkeye WideBar.

Take a look:

Now, you’ll recall that the larger yellow dots you see along the top of the Volume indicator at the bottom of the screen are the Hawkeye Volume Radar.

But if you look closely, you’ll see smaller yellow dots at the tops and bottoms of certain price bars.

Those are the Hawkeye Pivots.

The Pivots identify isolated highs and isolated lows in the market.

An isolated high would be a price bar with a higher high AND a higher low than both the previous and the next bar, while an isolated low is a bar with a lower low and a lower high than the previous bar and the next bar.

Now, the Pivots are a lagging indicator, meaning the software doesn’t paint the Pivot dots in real time.

However, when you see a Pivot form, you can expect to see three to five bars of price retracement follow.

Now, let’s quickly talk about the Hawkeye WideBar before we move into the Trend + Stops.

See that big, purple price bar right in the center of the chart image above?

That’s a Hawkeye WideBar.

Now, the WideBar signifies a price bar that has twice the average true range (ATR) of any of the preceding 14 price bars.

Whenever you get a price bar that has two times the ATR of the preceding 14 bars, Hawkeye paints that bar purple…

And when you see this, you can expect one of two things to happen next:

  1. Price will return to trade within the range of the purple bar for the short term
  2. Price will make a true breakout in one direction or the other

In other words, the WideBar alerts you to a coming breakout…

Or a fakeout.

Now, with those 5 indicators, you’re able to begin leveraging the predictive power of volume in your trading.

But by adding the Trend + Stops Module, you have all the necessary components to follow the Hawkeye 3-Step Method for entering and exiting trades with laser-like precision.

Let me break down the Trend + Stops Module for you.

Looking at this chart from left to right, you see a series of white dots at the base of the price candles that turn green as price is rising…

Then, as price starts moving sideways, you see those dots turn white again.

Those dots are the Hawkeye Trend tool, and they let you know when price is in a trend.

Green dots mean price is trending upward, or long…

Red dots signify a down trend, or short…

And white dots represent a neutral trend, meaning price is in congestion, consolidation, accumulation or distribution.

Now you may have heard the phrase, “The trend is your friend.”

That’s true, but I’d add one caveat:

The trend is your friend… until it’s not.

A consolidation period, or sideways, choppy movement that would be signified by white trend dots, absolutely decimates a trend trading strategy.

That’s why it’s just as critical to know when NOT to be in a trend as it is to know when to jump into one.

Now, the last piece of the puzzle is the Hawkeye Stops.

See the little crosses below the price bars and the trend dots that are connected with a green line?

That is the Stops indicator, which as the name implies, shows you where your stops should be at any point along the trend.

Now if the trend is long, you’ll see green stops below the price bars…

And if the trend is short, the stops will be colored red above the price bars.

These stops are also a very good indication of support and resistance, and you’ll often see price treat those levels as such.

Now, as I mentioned, these tools combined — the Hawkeye Volume and Trend + Stops indicators — give us the foundation for following the 3-Step Method…

Which gives us a standard, step-by-step approach for making definitive decisions on entering and exiting trades.

That means no more guesswork…

And no more emotional decisions.

Instead, you simply follow the simple rules to manage your trades.

Now, we’ve put together a special training video that shows you how you can get started trading using these tools today… along with a very special offer on the Hawkeye Volume and Trend + Stops package.

You can view it for free right now by clicking here!

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