First you must understand that markets are
dynamic systems, changing every day as a result of new information. These
indicators provide an indication of probable direction based on current
information and reliable conditions favoring reversals in the past. This
is the best we can do since no one knows tomorrow. Obviously as markets extend
their move in one direction or another, there will be a time when a reversal
occurs marking a top or bottom. The signal may not be confirmed by the next
days action but at least you are forewarned of the condition and possibility
of a reversal. This information is vital in setting stops to protect profits
or enter new positions.
The question of if they are short term signals
depends on the trading strategy of the user. Investors (longer term) may use
them on weekly or data to determine where to enter or exit just as day traders
use them on intraday data to provide information on the length of their
trades. Indicators, in and of themselves, are not a trading methodology and
perhaps that is way they fail for so many traders who want to take thinking
out of the process. I use them as part of an overall methodology which works
best when a confirmation of the warning is received. For example, if a have a
sell signal for tomorrow, I will want to monitor market conditions on that day
before entering a position. If market bias is strongly bullish after 20
minutes, I know conditions are not right yet for the short.Generally, when I
try to trade the anticipation rather than the confirmation, I must undergo big
drawdown or losses.
Hope this helps.
Jim
----- Original Message -----
Sent: Sunday, June 08, 2008 8:48
AM
Subject: [SPAM]Re: [SPAM][RT] HAWKEYE
VOLUME INDICATOR
Looks interesting. Is this more a short
term, contraian method with very close stops.
The reason I ask is. If the red
dots are sells and the blue dots are buys. It seems that the method is
doing more selling when the market is going up and more buying when the
market is going down.
Looking like a contrian type
method.
Is that correct? Really hard
to know much with a chart and no info about what I am looking.
----- Original Message -----
Sent: Sunday, June 08, 2008 11:24
AM
Subject: Re: [SPAM][RT] HAWKEYE
VOLUME INDICATOR
Market reversals are not a function of volume
alone but depend on time, price and volume.Here are some indicators that
do fire at tops and bottoms and consider all three.
Jim White
Pivot Research & Trading
Co.
PivotTrader.com
----- Original Message -----
Sent: Sunday, June 08, 2008 3:05
AM
Subject: [SPAM][RT] HAWKEYE VOLUME
INDICATOR
Ben/Jeff-
Thank you! Any feedback as to user experience w/
this
indicator?
Tks for any comments.
I must be
overlooking something because it doesn't seem to
work as
the
theory purports. Let's look at an example, either at
tops
or
bottoms. Now the so called 'smart money' are supposed to
telegraph
their movements by either distributing at tops and
accumulating at
bottoms, right? Then why do all the tops show
green bars,
and the
bottoms show red bars? I mean 390 different
calculations,
and there
are few red bars and tops or green bars
at bottoms! ???
I mean this seems to be the case much, much of
the time.
So, what
am I missing, or how does one use this
indicator?
My understanding is that all the other indicators
offered
by
Hawkeye are based on some other concept than volume. I
think they
make most of their income from seminars and selling
software as
opposed to trading this concept. So what else is
new?
Chas