Following last night’s great set up on the fatman indicator, I wanted to follow up on the trade this morning and to see what happened in the overnight markets.
Well in simple terms, the fatman delivered once again, and we based our entry on the 15 minute chart which is shown above, with a wide stop loss based on the stop loss indicator, which is part of the trend and stops indicator. So let’s see what happened!
First, we entered our initial position based on the aggresive volume entry on the roadkill indicator with the small magenta dot signalling a volume change from bullish to bearish, with the heatmap also following the same pattern, and adding further confirmation and giving us increased confidence as a result.
Following two consecutive red trend dots, the market then reacted to market news, with the volatility reflected in the magenta bar, but the key point is that despite this short term volatility, our stop loss was sufficiently wide to allow the market to breathe, and to continue on the trend lower. This bar was immediately followed by an aggressive trend entry signal on the roadkill indicator, as the longer term trend clicked back from neutral in white, to red once again, and helping to give us the confidence to stay in the trade. Our no progress indicator, the large red trend dot, then gave us a visual alert, and an audit on the trade, and being in profit, the decision was simply to stay in for the time being.
Over the next few hours, both trends remained red, confirming the bullish picture, supported by the heatmap, although the longer term volume did move from red to white, but never moved to green throughout the trade, and on reverting back to bearish sentiment, duly delivered a second magenta volume signal as the indicator confirmed a return of sellers to the market. Meanwhile, our stops indicator had pulled in our stop loss, on the 15th trend dot, and as we can see from the chart, the stop loss position tightened accordingly, locking in profits as the trend develops. This of course can be set to your own risk profile, but in this case we were trading a longer term trend and therefore happy to leave the settings at this level.
As you can see from the chart, throughout the overnight session there was no close above our stop loss indicator which would have signalled an exit for us, as we continued to hold the position overnight, but the pivot low of early morning, followed by that just before 6.00 am alerted us to the possibility of support being created at this level, and a possible slowing in the trend.
This duly started to change as the London session opened, with the heatmap in transition from red to dark red and ultimately to green, coupled with a change in trend from red to white, coupled with our volume changing from selling to buying. With the trend appearing to have become exhausted, and with a stream of signals now telling us market sentiment for the euro Canadian was changing, it was time to exit the trade with a close above the stop loss indicator just before 08.00 this morning. A fascinating trade which highlights many of the hawkeyefx indictors and tools and which ultimately give you the confidence not only to get INTO a strong position, but also to STAY in that position for the longer term, as you manage your trade, before closing as the market sentiment changes once again.
Regarding your comments on the trade, since you dont attach the
fatman chart together with the chart, it doesnt make sense.
You have to be much more specific if we will see and understand the whole picture.
Just to let you know we will be holding our first Hawkeyefx forex room on Thursday 10th Nov – you can register for this event by simply downloading my free forex trading guide at . Not only will be showcasing the product but you will also be able to see how we use the software for trading. Thanks.