In this week’s newsletter, I want to show you how Hawkeye indicators identified an amazingly profitable trade in the British Pound (GBPUSD).
First of all, let’s take a look at the Fatman indicator.
So, let me show you how I use it to find low risk opportunities, particularly when currencies are either overbought or oversold.
First off, notice where I’ve placed the two red arrows on the chart.
The first arrow shows where the Pound (the orange line) has gone up and touched the over-bought area.
Next, notice how it dropped, rose again, and then, put in a lower high, as marked with the second red arrow.
This tells me there is weakness in the Pound, and I should be looking for short trades.
Next, let’s take a look at the weekly chart to see what it’s telling us.
I’m sure you can easily see how the market is starting to turn downwards.
You’ll also note that we see a phantom isolated high, two bars before that red arrow.
And finally, you can see how both volume and heatmap indicators have gone from green to red (showing professional selling).
So, in the context of all this weakness, let’s consider the absolutely wonderful short setup that came in on the daily chart.
First, notice up top, where I have placed the first red arrow. There you can see five isolated highs and lows.
When you see clusters like this, it’s telling you to get ready, because a major turning point is coming.
Next, look where I’ve placed the second red arrow down on the volume. Can you see how volume has transitioned from green, to white, to red?
That means there is professional selling, ahead of the coming price drop.
And if all of that wasn’t enough, notice the magenta wide bar, giving another signal that a change is coming.
Finally, after multiple Hawkeye warnings that virtually scream that a short is coming, the trend dots start to roll over and the market heads down.
So, when the trend dot turns red, we take the short and BANG! Down it goes.
And, we see how it went down from 171, and now, it’s trading at 167.21.
My friends, Hawkeye indicators virtually predict the future.
This was an easy setup that could have made you thousands of dollars.
And the good news is, Hawkeye Indicators find trades like this every week.
Are you using them?
[The red arrows are for illustration only and do not form part of the software]