Volume Trading 101: Back To Basics

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

Hey Trader, Happy Monday! August is now in full swing, and it's the time of year when kids typically start heading back to school. Of course, this year has been anything but typical… But in the spirit of starting a new academic year, I thought this week it'd be appropriate to go back to basics. See, we've recently made a few changes here at Hawkeye, and we've got even more exciting things in the works… And one of the biggest updates is that members now have the opportunity to attend a WEEKLY private coaching session with me that used to be held only once per month. Now, I'm really pumped because we've had a ton of new members join us over the summer. And if there's one thing I've learned through all my years of trading… and of coaching other traders… It's that when it comes to achieving consistent profitability, fundamentals are the key. I mean, this is pretty much true for any skill you want to learn and develop. Fundamentals provide the solid foundation upon which you can build your own personal style and strategy. Now, if you've seen any of our videos or even looked through the Hawkeye store, you know that we have a lot of tools and indicators at our disposal. But today I want to strip things all the way down so you can really understand everything that's going on from the most fundamental level. Take a look at this:

What you see here is a 3 minute ETF chart overlaid with the Hawkeye Starter Package. As the name implies, the Starter Package includes the most basic, fundamental tools needed to get up and running with the Hawkeye methodology… So let's break it all down. Now, at the bottom of the chart, you see a row of colored, vertical bars. That's the Hawkeye Volume indicator… and it's the heart and soul of the Hawkeye method. Now, you may be familiar with volume bars on a typical chart… But what makes Hawkeye stand out is that it color codes those volume bars so you can quickly identify whether the volume represents buying pressure or selling pressure. Now, the higher the bar, the higher the volume… And when the bar is green, it means the volume is being driven by buying pressure. Conversely, when you see a red bar, that means the volume is fueled by selling pressure. See those white bars? Those represent neutral volume pressure… meaning, there's an equal distribution of buying and selling. Now, I'm going to say this again because it's really important… The Hawkeye Volume Indicator is the single most foundational tool in the Hawkeye stable. Hawkeye's proprietary algorithm calculates those colors based on a technology that's actually been around for decades. It's called Volume Spread Analysis… But Hawkeye takes it one step further with a specialized technology we call Volume Price Analysis. See, the Hawkeye system accounts for a number of other factors — things like standard deviation… average true range… the opening and closing price… and a host of other critical data when performing its calculations. In fact, Hawkeye performs more than 300 unique calculations for every single bar! OK, let's keep moving with our Starter Package breakdown. Let's go back to the chart:

This time, I want you to notice those little yellow dots that appear along the top edge of the Hawkeye Volume indicator across the bottom of the chart. That's the Hawkeye Volume Radar… And it gives us even more critical information regarding volume. Now, in this particular example, we only see yellow dots… But there are three different colors that the Volume Radar can display. Red dots represent ultra-high volume… Yellow dots mean very high volume… And cyan dots let you know that volume is ultra low compared to the previous 15 bars. Of course, ultra-high volume means an incredible amount of demand… And ultra-low volume reflects no interest at all. These are important events in the market that we should use to inform our trading. Now, let's talk about the final piece of the Hawkeye Starter Package puzzle… The Volume Paint Bar.

In the middle of the chart, you see the price bars just as you would on any other chart. But the Hawkeye Volume Paint Bar color codes your chart's price bars according to buying and selling pressure, just like the Volume indicator at the bottom of the chart. This is game-changing because it makes it so much easier to see exactly how buying and selling pressure corresponds with price action. Again, these 3 tools make up the core foundation of the Hawkeye method… And they're available right now in our Starter Package. But if you'd like a more in-depth look at precisely how these indicators work on ANY tradable instrument… AND at how countless traders from all walks of life… and from all parts of the world… use Hawkeye every single day as part of their winning trade strategy… Then click right here to view a no-cost training video and see the difference that volume can make in your trading!

Rare "Cluster" Activity Sighted On This Tiny BioTech Stock...

Our friend Ross Givens has developed a unique strategy for spotting off-the-radar stock opportunities… And one of the most powerful signals is something he calls the "cluster." This signal has alerted him and his members to opportunities like 267% on Neff Corp… 324% on Financial Institutions Corp… And 706% on AVEO Pharmaceuticals. Well, Ross just sent word that he's spotted a brand new opportunity on a stock that's showing some of the most insane cluster activity he's seen in ages… And it could be signaling an accelerated breakout move with 455% upside potential. He actually put together a brief video breakdown of this potential blockbuster stock and why he believes it's primed for takeoff… Click here to watch it right now and learn how you can take advantage of this opportunity!

Randy Lindsey

Hawkeye Traders team1@hawkeyetraders.com hawkeyetraders.com

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