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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. If the initial position was entered with 3 contracts then multiply 3 times the Adds number i.e. 3X1, 3X3, 3X2, ect. In this position volume turned red and 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 possible short position. At the time of the signal the market had previous been trading in congestion. When Hawkeye signaled the potential trade price had broken out of congestion with red Roadkill volume, bright red heat map, 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, thereby not triggering the stop. After the retrace and the subsequent congestion it created the market continued to trend down and touched level 3 where half of the initial position should have been scaled out. 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. The market continued the trend down and touched level 3 triggering the first scale out. At level 3 half of the initial entry position should be scaled out. After level 3 was touched the market continued to move down then closed above level 3. Once a bar closes above level 3 the stop is triggered and all remaining positions should be exited at the open of the next bar.