Project V-Swarm LiveAdvanced Training

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Disclaimer

Topics Covered

● Basic Training Review● Hawkeye Advanced Training

○ Hawkeye Advanced Tools○ Hawkeye Zones○ Hawkeye Advanced Techniques

● Trade Plan Examples● Scanning for Potential Trades● Hawkeye Functions for Strats/EAs● Hawkeye Tomahawke

Basic Training Review● Volume Price Analysis● 6 Ways A Market Moves● 3 Step Entry Exit Method● Basic Risk Management

Volume Price Analysis

● Volume Price Analysis takes into account volume plus comparing the open and close.

Open

Close

High

Low

Volume Price Analysis

Volume

VSA

Wide Price Bar With High Volume

You should expect a greater than average volume. The relationship of the close on Bar A is an indication of whether it is buying or selling – the close is in the bottom 1/3 of the range indicating selling.

Bar A

Wide Price Bar With Low Volume

You should expect a greater than average volume. Although, Bar A appears to have more volume than previous bars for the range of that bar, it should have had substantially more volume for that range. So this is, in fact, a low volume bar indicating a pause. This is confirmed with the close being at the midpoint of the range.

Bar A

Narrow Price Bar With Low Volume

Narrow price bar you should expect low volume. Bar A shows a narrow range and low volume – indicating a pause. Even though the close is less than the open, it shows that there was no demand for selling.

Bar A

Narrow Price Bar With High Volume in Uptrend

Even at the top of the trend, Bar A shows that there is above average volume for that range indicating buying. If it was selling, the range would have been far greater as the bid and offer would have expanded. Even though the close is less than the open, it is showing that this share was not being sold, in fact it is a sign of strength.

Bar A

Narrow Price Bar With High Volume in Downtrend

Bar A shows there is above average volume for the range indicating buying. Even though the close was less than the open, it indicates accumulation, for if it was selling the range would have been far greater.

Bar A

Back to Basics:6 Ways a Market Moves● A market can only move 6 ways

● Trend ● Trend Pause● Congestion Entrance● Congestion● Congestion Exit● Trend Reversal

Lower low than previous bar and next bar (Point A) and a lower high than previous bar and next bar (Point A).

Note: Phantom isolated lows occur when only the low condition Point A is met. There is no need to see where the high is.

A

Higher high than previous bar and the next bar (Point A) and a higher low than previous bar and next bar (Point A).

NOTE: Phantom isolated highs occur when only the high condition Point A is meet. There is no need to see where the low is.

A

Trend run is established (Point A) when the close is above the dot, the dot is rising and the close is greater than the open and in the top 40% of range.

NOTE: At Point B the dot is equidistant from the previous dot and continues to be equidistant.

A

B

▪ Is exactly the same as a trend run. However, when a close is under the dot and open (Point A) but the dot is still rising, it denotes a pause.

▪ You are then looking to see resumption of the trend run (close being greater than the dot ) this should occur within three to five time frames.

A

When the close is under the dot and the dot is flatish to the previous dot, you have congestion entrance (Point B). You then look for the last isolated/phantom high (Point A).

A

B

● Once congestion entrance has been defined you are then waiting for the first isolated /phantom low to form (Point B). This has to be within 5 bars.

● Extend a dotted line from the isolated/phantom high (Point A) and the isolated/phantom low (Point B), you then have your congestion high and low channel.

● As the chart continues, you will see new lower isolated highs (not phantoms) and isolated lows developing you then move your congestion parameters to these newly formed pivots (Point C and Point D).

NOTE: If after congestion entry there are no isolated / phantom low formed within 5 bars, you are in trend run down and trade it according to the rules.

A

B

C

D

▪ Once having defined congestion you are waiting for a close either above the last isolated high (Point C) or below the last isolated low (Point D).

▪ At Point E the close is greater than at Point C and a congestion exit to the upside has commenced. The bar close must be greater than the open and in the top 40% of the range of the bar (approximately).

NOTE: In this example at Point E, the dot has also printed above the dotted line at Point C. This is a stronger indication of congestion exit but a close greater than Point C is sufficient.

EA

B

C

D

At Point B the bar is wide and the dot is less than the dot 3 bars previously and close less than dot.

B

Hawkeye Entry and Exit

3-Step Entry Exit Method● General Principles:

● 3 timeframes are used for entry● Fast - enter and exit on this timeframe● Medium - double Fast timeframe● Slow - double Medium timeframe

● Conservative Trend Speed Default● If trading stocks/options, do not trade

against the direction of the Hawkeye Trend on the daily S&P 500

Entry MethodStep 1 - Fast TimeframeA, B, and C MUST be in place

You now have to look at the next TWO timeframes for confirmation

Long Short

A. Trend dot greenB. Volume green (min 2 bars green)C. Heatmap bright green

A. Trend dot redB. Volume red (min 2 bars red)C. Heatmap bright red

Entry MethodStep 2 - Medium TimeframeA, B, and C MUST be in place

You now have to look at the Slow timeframe for confirmation

Long Short

A. Trend dot rolled over or risingB. Volume green. The second volume

bar may be green or whiteC. Heatmap dark (red or green) or bright

green

A. Trend dot rolled over or fallingB. Volume red. The second volume bar

may be red or whiteC. Heatmap dark (red or green) or bright

red

Entry MethodStep 3 - Slow TimeframeA and B MUST be in place

Long Short

A. Trend dot rolled over/flat/crunched up tight

B. Volume green

( Note: No consideration of Heatmap)

A. Trend dot rolled over/flat/crunched up tight

B. Volume red

( Note: No consideration of Heatmap)

Exit MethodThere are 3 types of exits1. Trend Following2. ATR Levels Stop3. Profit Target

Exit MethodExit Type 1 - Trend Following

Long Short

A. Hold until stopped outB. If volume green or white, use crash

barrierC. If volume red then close under HK

stop (green cross) or intraday touch of barrier

Note: With the trend stop there is the ability to pull the stop into aggressive after your pre-determined nominated amount of bars i.e. if in profit after 7 bars you can pull stop in from conservative to aggressive

A. Hold until stopped outB. If volume red or white, use crash

barrierC. If volume green then close over HK

stop (red cross) or intraday touch of barrier

Note: With the trend stop there is the ability to pull the stop into aggressive after your pre-determined nominated amount of bars i.e. if in profit after 7 bars you can pull stop in from conservative to aggressive

Exit MethodExit Type 2 - Hawkeye Levels ATR

Long Short

A. Until price closes ABOVE 2 ATR then use close below ATR Level stop or a touch of the HK stop (green cross) to exit

B. If it continues to move in your direction once there is a price close ABOVE 2 ATR then exit if there is a close below 1 ATR or an intraday touch of 0 ATR.

C. Move up every NEW ATR level break e.g. Close over 3 ATR then exit on close below 2 ATR or touch of 1 ATR

A. Until price closes BELOW 2 ATR then use close below ATR Level stop or a touch of the HK stop (red cross) to exit

B. If it continues to move in your direction once there is a price close BELOW 2 ATR then exit if there is a close above 1 ATR or an intraday touch of 0 ATR.

C. Move down every NEW ATR level break e.g. Close below 3 ATR then exit on close above 2 ATR or touch of 1 ATR

Exit MethodExit Type 3 - Profit TargetYou may choose to exit on a price touch of a pre-defined ATR Level (HK Level 3, the “sunshine level”) or any other pre-defined profit target.

My Favorite Predefined Profit Levels:ES, TF, EMD - 2ptsYM - 15ptsNQ - 5ptsCL - 20ticksForex - 10pipsEquities - too many variables… Options - 0.20

Basic Risk Management ● Maximum number of trades open at any

one time = 3● If you want to open a new position, you

must close the weakest existing trade● Never risk more than 10% equity on any

one trade

Basic Risk ManagementTotal Capital

$18,000

$9,000 $9,000Cash Box Trade Box

50% of Profits go in Cash Box $3,000 $3,000 $3,000

Cash Box

Trade Box

50% of Profits go in Trade Box

Break

Hawkeye Traders SeminarAdvanced Training

www.HawkeyeTraders.comAll material contained herein is protected by U.S. and International copyright law. No material contained in this presentation can be used without the written, expressed permission of Hawkeye Traders, LLC

Advanced Training Demo

Roadkill EntryShows when the volume and/or price of two different timeframes align

There are 4 Roadkill SignalsTrend EntryTrend RoadkillVolume RoadkillVolume Aggressive Roadkill

4 Roadkill Signals

1. Trend Entry - when the trend of the fast and slow timeframes FIRST align

2. Trend Roadkill - when the fast trend changes colors and then aligns with the slow trend that hasn’t changed trends

3. Volume Roadkill - when the fast volume aligns with the slow volume that hasn’t changed colors

4. Volume Aggressive Roadkill - when the fast volume aligns with the slow volume color

Some of the biggest obstacles traders face are:1. Entries2. Exits (Stops, Profit Targets)3. Why is this trade not working?4. Where is support?5. Where is resistance?

Hawkeye Zones Overcomes Each of These Obstacles, Helping You to:

1. Clearly see where to enter2. See clear exit points (stops and profit targets)3. Know why the trade is stalled or reversing4. Know where support is located5. Know where resistance is located

Hawkeye ZonesResistance

Support

Entry

PT 1

PT 2

PT 3

Stop

ZONE THEORY / Market Context

Basic Concepts of Support and Resistance: Supply and Demand Zones

Supply

Demand

● This technique is based on pure price action. We are looking at HH/HL/LH/LL. (H=High / L=Low)

● The "flip-flop" support becomes resistance and vice-a-versa.● What condition is the market currently in: ranging,

consolidation, or expansion.

#1. ZONE THEORYWhat are zones:Zones keep track of key market volume and price action as price moves throughout time.

We are Datamining, which gives us an edge on the right side.

Zone Colors:These colors help us remember how many times price as tested and failed to breakthrough at these defined market areas.

#2. ZONE THEORYZones and Volume:Zones typically identify regions of significant volume activity.

Historically, these areas are where we see buyers/sellers step into the market.

In the Present, We can use these fresh zones to establish support and resistance.

In the Future, we can define where price is expected to go as supply and demand shift.

#3. ZONE THEORYTime:Any time that the market is open we need to keep track of the creation and destruction of price zone areas. Zone levels can last for YEARS!These levels can also switch between support and resistance.

Support & Resistance + Time = Supply & Demand

+ How long a zone has lasted on your chart+ Time of day when price interacts with the zone+ Higher time frame confluence

ZONE TRADING

3 Rules for Trading the Zones● Confluence of Bigger

Time-Frames for Trend Reversal Trades

● Smaller Time Frames for Trend Following Trades.

● Always look for confluence with every trade!

Avoid buying into highs of the day

Don’t sell into the low

ZONE THEORY | Context Example

Zone was 4 days old at this time. Big money made a new high inside the zone and reversed it. You can see the market memory in the zones you know not to buy this false breakout.

60 minute Chart 15 minute chart 5 minute chart

7:30 am

ZONE THEORY | Gold Example

Zones that are 7 years old are affecting price right Now. This is the power of the zones and their fractal nature.

60 minute Chart 15 minute chart 5 minute chart

7:30 PST

Weekly Chart Daily Chart

Weekly zone overlapped on the Daily

fractal patterns in nature

Break

Advanced Techniques● Use Volume to signal a correction or

reversal● Use Volume to estimate the pullback/

retracement zone after entry, my “Sweet-Spot” rule.

● Different strategies for different markets and conditions● Gap-fill strategy, Pull-back strategy,

reversal strategy, Trend strategy, Money Bounce strategy, etc.

Crude Oil Example

CADJPY Example

Other Advanced Techniques● Tomahawke system and scanner● Use the Roadkill to Add to existing trades,

like the Adds, but for any timeframe.● Use the Fatman to identify “exit on

strength” locations.● Use multiple timeframe Fatman to ID the

strongest or weakest pairs to trade.● My favorite reversal strategy

And still more...

Hawkeye Functions for Programming your own strategies and EAs

● TradeStation● NinjaTrader● MetaTrader 4

Auto-scanning for trade setups● TradeStation Scanner

Hawkeye Tomahawke

Tomahawke Concepts

● Tomahawke Volume● Tomahawke Trend● Tomahawke Fatman● Tomahawke Scanner● Tomahawke Heatmap● Tomahawke Roadkill (add-on available)

Tomahawke Volume● Volume is the fuel that drives the market● Our volume algorithm performs over 300

calculations per bar to give you a clear view of buying or selling pressure of any given pair

● Volume is the only leading indicator● There is a story you can tell just by looking at the

volume

Tomahawke Trend● One of the most difficult tasks

in trading is to identify trend● Hawkeye identifies trend and

direction by using simple color codes

● Basically, Hawkeye uses ATR coupled with standard deviation and volume relative to price to determine if the price action has entered trend or not.

● Auto-trailing Stops allow the market to “breathe” and lock in profits as the trend runs

Tomahawke Fatman● The Fatman can be considered a relative

strength indicator, with the top horiz lines showing when a currency is overbought and the bottom horiz lines showing when a currency is oversold.

● Each currency is represented by a different colour. For example the cyan colour is the USD and orange represents the GBP

● Volume, trend, and pattern recognition are used to determine the relative strength of each currency against all the other currencies.

● If a line is ascending, that currency is strengthening; and if it is descending, that currency is weakening.

● If a currency is strengthening then we say it is In-Hawkeye trend.

● Taking the concept of ‘In-Hawkeye Trend’ we can now colour code our charts to instantly show the trend and volume.

● In this example of the GBPUSD, the GBP is strengthening when the trend is orange (price is going up in the chart) and the USD is strengthening when the trend is cyan (price is going down in the chart).

● This makes the charts easy to read and gives clarity of thought for fast trading

Concept of Color Coded Charts

Tomahawke Scanner

● Tomahawke Scanner shows multiple timeframe strength and weakness

● These come in cycles and you can see each color-coded pair relative to the others

● Easily ID when a correction or reversal is coming

● See the long and short term trends all at once

● Know which pairs to trade

Tomahawke Heatmap

● ID market sentiment● Assess trend strength● Helps to stick with the

trend● Can be used with

multiple timeframes

Tomahawke Roadkill● Look at multiple

timeframes simultaneously

● Shows multiple timeframe alignment

● Provides clear signals based on trend and volume

● Fast and efficient tool● Enables signals for

re-entering an existing trend

Tomahawke Suite● Tomahawke Trend+Stops● Tomahawke Volume● Tomahawke Volume PaintBar● Tomahawke Pivots● Tomahawke Fatman● Tomahawke Scanner● Tomahawke Heatmap● Tomahawke Roadkill (add-on available)These new indicators are all color coded and designed to work together as a complete system for scalping, trend trading, or longer time trades. It includes access to the on-demand video training archive, access to the exclusive members only chat group and more.

Tomahawke - All Together

Customer SupportWeekly Live Training sessions

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