Stop Falling For False Breakouts… Here’s How

The Hawkeye Traders E-Letter — Your No. 1 Source for Volume Trading Insights

Hi Trader, Earlier this week, we talked about how the S&P is trading within a consolidation range… And how it could continue to remain choppy with no real break to the up or downside for the next couple months. That's actually pretty typical for summertime trading. Why? Simple… a lot of traders, both retail and institutional, are stepping away from the markets, taking vacations and recharging their batteries before the fall. Even Wednesday's pullback was within the range we'd previously defined… And as you can see here, Hawkeye has formed two new Pivot dots indicating a tightening of the channel that we mentioned Tuesday:

In that image, I've turned on the extension lines (the two yellow, horizontal lines) to show the new channel formed by those Pivot dots. So, what we're looking for now is a CLOSE either above or below that newly defined range… Which would indicate not an entry, but a setup either to the high or low side. Now, in that image, you can also see where price actually dipped beneath the new range both yesterday and Wednesday. … But because it didn't close beneath that range, we know those were FALSE BREAKOUTS Which are traps set by institutional traders attempting to lure retail traders like you and me in… And create liquidity in the market. Let me explain… You see, buyers need sellers, just like sellers need buyers. And because the institutions have massive resources that heavily outweigh the average retail trader, they're able to manipulate the markets and create either selling or buying environments in their favor. Here's an example… Say the institutional traders want to buy… And they want to leverage their resources to drive the market down to a lower price. Now, it's important to keep in mind that a price drop can not only occur from an increase in selling pressure… But also from a lack of buying pressure, especially from these large institutions. So as the institutions back off from buying, price begins to fall rapidly. Now, when new or naive retail traders see that price dropping, they think it's a breakout to the low side, and they start selling into what they think is the high of the day… When they're actually selling into a false low. This is precisely what the institutions want. They're now able to start buying up all this new liquidity… And when the retailers suddenly see price reversing, they put stops in place, which the institutions just gobble up like candy. It's a dirty game, and the unfortunate reality is that thousands of retail traders fall prey to it day in and day out. But here's the thing… When you understand how volume works AND you have a system for reading market volume in place… You can spot these false breakouts and protect yourself from falling victim to the institutions. So if you'd like to learn more about how Hawkeye helps you read and understand volume so you can avoid these false breakout traps… Just click right here to view a free training video. And, keep in mind that today is the LAST DAY of our 30% off Father's Day special… So if you've been putting off purchasing one of our packages or modules, now is a perfect time to do it. Just click here to view our store and use the coupon code "FD" at checkout to claim your 30% discount!

Crude Corner: Oil Industry Insights, Market Analysis and Price Outlook

WTI Light Sweet Crude Oil Futures Analysis August - CLQ20 Contract Crude Corner Outlook: The $38.00 price area can contain initial weakness, while the $40.00 price area is in reach and able to contain session strength. Near-Term Bullish Scenario: Closing above the $40.00 price area indicates a bullish continuation towards the $43.00 price area over several days. Near-Term Bearish Scenario: Breaking below the $38.00 price area allows a bearish continuation towards the mid $35.00 price area which is likely and able to contain selling through next week. Check out our Crude Corner long-term market analysis outlook charts AND our Crude Corner weekly breakout chart with active support & resistance price area(s). Want to learn more about the system Anthony uses to find profitable trades in an unpredictable market? Click here to view a no-cost training video right now!

The Hawkeye Team

Hawkeye Traders team1@hawkeyetraders.com hawkeyetraders.com

Call us: (888) 233-8598

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