Chart Examples

Prior to May 11, 2009, the ES was in a strong downtrend. The market made a reversal and Hawkeye picked up a long signal on May 11, 2009. At the open of the May 11 bar Hawkeye had a green trend dot, bright green heat map and green volume. The daily chart also confirmed the long position through all three indications. When entering a position trade it is always important to look at the daily chart prior to entry as the daily chart could show red volume when the weekly confirms green. By following this rule it is possible for position traders to reduce risk and drawdown by decreasing the chance of getting in during a short term pullback of the underlying trend. Once this position is entered place the Hawkeye Adds on the entry bar. As the market continues to trade the Adds indicated new positions should be added to the trade in July, October and again in January of 2010. The Adds ChartTool places a 1, 3, 2 and 1 on the chart. These numbers are the multiples you will use on the initial position size. For example if you enter with 1 contract for the involvement position then you would multiply 1 times each of the other Add numbers i.e. 1X3, 1X2, ect. In this position, Hawkeye Volume turned red and price subsequently touched the Hawkeye Stops triggering an exit. Had price touched the Hawkeye Stops on white or green volume, then the position should have been held until the crash barrier was touched. As soon as volume conflicts with trend i.e. up trend with red volume or down trend with green volume, move the stop to the touch of the Hawkeye Stop. With any other volume and trend combination, maintain the stop at the crash barrier.

On July 2, 2010, Hawkeye signaled a short position. At the time of the signal the market had previously been trading in congestion. When Hawkeye signaled the potential trade, price had broken out of congestion with red Roadkill Volume, bright red Heatmap, red Volume and a red Trend dot. It is important to note that when the market is trading in congestion, traders should ignore all changes in trend color. In tight range markets, the trend direction can change without price confirming a congestion exit. Therefore, traders must become proficient at reading price to recognize these patterns to remove the risk of entering during tight range periods. Upon entry, price started to trend down and then abruptly retraced moving towards the crash barrier. The crash barrier was never touched, and we stayed in our trade, not letting emotion kick us out. After the retrace and the subsequent congestion it created, the market continued to trend down and touched Hawkeye Level 3 where we scaled out half of the initial position. Shortly after the first exit the market pushed up a bit and closed above level 3 triggering the stop at the open of the next bar.

On July 6, 2010, Hawkeye signaled a possible short position in the Russell 2000. Prior to the potential entry the market was trending up with green volume. After the initial up move the market entered congestion. Just after 10:25 price exited congestion confirming the downtrend. Upon confirmation it was possible for a trader to enter the short Hawkeye Signal at 609.30. The market continued the trend down and touched Hawkeye Level 3 triggering the first scale out (half of the initial entry position). Following the Hawkeye Level rules, when price closes below a level, then back over the same level, you exit your entire position at the open of the next bar (598.90).

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Prior to the long positions outlined in the above chart 3M Company was trading in a downtrend. The market started to swiftly move up making a "V" reversal pattern. On April 24, 2009, Hawkeye Signaled a long position by providing green Hawkeye Volume with a bright green Heat Map and a green trend dot on the weekly chart. Once these indications occur, verify that the daily chart has green Hawkeye Volume, bright green Heat Map and a green trend dot. In this example, April 27, 2009 was the first day after our weekly signal that we could enter the trade. The initial entry was at the open of the bar, or 56.45 on April 27, 2009. Now, insert the Hawkeye ADDs from the entry bar on the weekly chart, and you will see the numbers "1, 3, 2, 1" above the chart price bars. This means the first position is a multiple of 1 times the size of your entry. For example if you trade 100 share lots then you would enter 100 shares long for the initial entry. If you trade 300 share lots you would enter 300 shares at the initial entry price. The ADDs continue to plot for a total of four entries. On the fourth entry trading 100 share lots a trader would hold a total of 700 shares. This position should be held until the market trades and touches the Hawkeye Crash Barrier (the solid green stop line below the price bars). This took place on May 7, 2010, at 76.55. If you had a resting stop on the position it should have been triggered at 76.55.

On February 26, 2010, Apple exited congestion and re-established the previous uptrend. At the open of the March 1, 2010 bar, Hawkeye indicated a long position with green Hawkeye Volume, bright green HeatMap and a green Trend Dot with an entry price of 208.94. Place the Hawkeye Levels on the first green trend dot of the trend on the daily chart. Using the Level rules, we scale out at Level 3, Level 5 and Level 7. In this case the market traded to Level 3 at 218.23, Level 5 at 227.99 and Level 7 at 237.75. At Level 3 traders should scale out half of their positions, Level 5 a quarter of their positions and the remaining shares at Level 7 (optional as you may want to let the last lot be a runner, keeping your stops close but letting the profits roll.

Prior to the uptrend Disney was trading in congestion. The congestion exit took place when the market closed above 30.87. This was the resistance level created by a Hawkeye Pivot High on February 3, 2010. The close above the Hawkeye Pivot High was on February 18, 2010. At this time there was still a white Trend dot on the daily chart. On February 19, 2010, the trend was validated with a green Trend dot, green Volume and a bright green HeatMap (trigger bar). The entry bar was on February 22, 2010 at the open, 31.35. Place the Hawkeye Levels on the first green trend dot. Once the levels were placed we entered sell orders to scale out positions at Level 3, Level 5 and Level 7. These levels were located at 34.13, 36.09 and 38.05. In this example, the market traded up and through Level 3 and Level 5 before triggering the stop at 36.95 on April 30, 2010, following the Level rules.

Previous to the uptrend QQQQ was trending down then moved into congestion. QQQQ had a congestion exit at 31.68. From this point the long signal was clear, triggering the entry for an initial 100 shares at 37.75. With the Hawkeye Adds, the first scale-in was for another 300 shares at 35.73, the second scale-in for another 200 shares at 37.75, and the final scale-in for 100 shares at 42.81. The position was closed at 47.15, with a touch of the Hawkeye Crash Barrier. Entry was based off the weekly chart and then confirmed on the daily by a green Trend dot, a bright green Heatmap, and green Volume. By entering on the daily chart with all green indicators, the probability of trend continuation was increased.

Confirmed entry short at 43.48 (first occurrance of red Trend dot, bright red Heatmap, and red Volume). First price target is at Hawkeye Level 3, and we scaled-out half our initial position at 43.10. Our second scale-out was at Level 5 (1/4 initial position), which was 42.80. Price traded below then above Level 5, causing us to exit the trade 42.75 based on the Hawkeye Level rules.

Our initial short entry was at 46.80, confirmed by the 15min Volume and Trend dot. First price target was the Hawkeye Level 3, which was reached at 46.46 (exited 1/2 our position). Price traded below and back above Level 2, so we exited the trade at 46.66 based on the Hawkeye Level rules.

Hawkeye ChartTools signaled a short position in Natural Gas on July 7, 2008 (using a weekly chart with a red Trend dot, bright red Heatmap, and red Volume). The daily chart must also have a red Trend dot, bright red Heatmap, and red Volume to confirm a short position on July 7, 2008, at 13.192. We manage position trades with the Hawkeye Adds, which are place at the beginning of the trend. At the next Add point a yellow 3 will appear, alerting you to enter 3 more contracts at the open of the next bar. This same pattern is followed when the 2 and 1 form. The initial stop on the position was the Hawkeye crash barrier (solid red line above price) at 19.062. When position trading, exit the positionusing the Hawkeye Crash Barrier when touched or a close beyond the Hawkeye Stops. The trade ended when the Crash Barrier was touched, at 5.301.

Hawkeye ChartTools signaled a short position in Wheat at the open on January 18, 2010. In this position the initial stop should have been 614 4/8. The position went down to Hawkeye Level 3 where we scaled out half of our positions. When the market closed below Level 3 at 484.00 the stop should have been moved to a close above Level 3 at 500 2/8. In this position the market repeatedly moved in and out of congestion. In the above chart we showed a congestion exit area. This point is illustrated with a close above the yellow circled pivot high labeled as congestion exit. When the last bar closed above the pivot high, the congestion exit pattern was completed. At that time, look at the daily and weekly Hawkeye Volume bars to make sure buyers are showing strength in the market (increasing green volume bars). In this case, the volume bars were decreasing and would have prohibited the long entry.

Hawkeye ChartTools signaled a short position on the daily chart at the open of May 4, 2010 (red Trend dot, bright red Heatmap and red Volume) at 3.3090. The initial stop was the crash barrier (red solid line above price) at 3.6015. When price closed below Level 2 (3.0885), the stop would be any daily bar that closed above Level 2. When the market closed below Level 3 (2.9665) the stop should be a close above Level 3. The first scale-out on the position was at Level 3 at 2.9665, and the swing trade was exited on May 18, 2010 at 3.0105 following the Hawkeye Level rules.