nigel-hawkesNigel Hawkes, a volume based trader who hails from the Isle of Wight (England), has been trading commodities, stock indices and Forex since 1986. Nigel has spoken at many money shows, appeared on CNBC, had articles featured in Traders Magazine, held seminars over the world for over 1200 attendees and now has over 3000 traders using his Hawkeye Traders volume based indicators.

In the show Nigel reveals:

  • The missing part to most Volume Spread Analysis studies
  • The timeframes you should be focusing on and why
  • A simple trick to easily read your moving average
  • The one thing he puts the most effort into getting right
  • His secret chart setting to trade Forex intraday
  • Amazingly simple changes you can make to help control your emotions

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18: Nigel Hawkes on Mastering Volume & Essential Tips for Struggling Traders
00:00:00 00:00:00

Recommended book

Trading in the Zone by Mark Douglas

Platform & Broker

Tradestation, Interactive Brokers

Interview links

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Transcript notes

Cam Hawkins:

Nigel, tell us a bit about yourself, personally, and what first attracted you to trading?

Nigel Hawkes:

Well, I’ve had a very interesting journey that got me into trading. I started off in publishing when I left school. I worked for the Times newspaper in London on the marketing side which is a posh way of saying I was selling advertising. I generated from that a magazine I started myself and that ended up quite a substantial publishing business which I sold off in the 1980’s and having had a company with 300 odd people working there, I then decided that I didn’t want to have a company with so many employees. I then went and a friend of mine told me about trading. I thought this was easy and in those days you could get weekly graph books to track gold and that’s how I started. I took a little office and I started to trade.

And that’s really how I really started trading. It was the ability of not having to have a lot of people working with me and the structure of a big company. And I have to tell you Cam, I was absolutely appalling at it. It was only because I’d sold my business for a substantial amount of money and I was single at the time that I had the ability to hang in and learn how to trade rather than be one of the statistics of the 90 odd percent that get flicked out of trading.

It wasn’t until I really went off, I decided after 7-8 consecutive losing trades it really had to stop because it was just crazy. So I took myself off to the London Stock Exchange to watch how the professionals traded in the pit. I went there every day for 2 weeks; I went in the morning, I went out at lunch (it stopped at lunchtime in those days), went to the pub, had a pint with the boys, went out in the evening really to find out what they had that I didn’t have. And they had 3 things: they had the discipline of a working environment, they had free money (the spread, the bid and the offer), but thirdly they could feel the market. They could feel the buying and selling coming in, if you like a feeding frenzy. And that’s when I said this is what I want to do and that’s when I started my whole journey on understanding volume and that led me to Phoenix, Arizona where I got the original course notes from Wyckoff, brought those back to England, started to go through them and really worked out what Volume Spread Analysis was all about.

And from there I started to trade again and I was okay, you know I was not doing much. And then Mark Douglas brought out a book called the Disciplined Trader, and foolishly he had a contact number in it and I rang him and flew over from England to Chicago and had a one on one with him. And he taught me techniques that really turned me around and really showed me that trading was all about probabilities, not right and wrong, risk etc. And from there I’ve really, not looked back. Ok, there’s been times where I’ve hit flat points but I would say in average, I know you’re going to ask me later how long did it take me to get it. It’s a 3-5 year journey I went on and after that it was off to the races.

About me personally, I live on the Isle of White which is a very beautiful place. I’m here for the summer. Sailing is a big passion of mine. Funny enough I was down in Australia for the America’s Cup with the British team when I visited your country and saw the Black Magic being launched for the 12 meters, when we were all racing for it when Alan Bond won. I do a lot of fishing, I do a lot of trading, a lot of travelling, I’ve got the Hawkeye users all over the world. I’ve got friends everywhere. I’ve got friends in America; I’ve got Cattle traders down there who use my stuff. I love collecting Art. There are a few artists that I really follow in the auctions. I love getting their artwork etc… And that’s what I do.

Cam Hawkins:

Can you give the listeners some insight into your trading? Your trading style, strategy, time frames, ave. trade duration, % winner’s, typical risk reward ratio… those sorts of things.

Nigel Hawkes: 

The trading that I use is based around understanding Volume. The big secret is, in my book, using triple time frame. I’m always looking for triple timeframe to always be in harmony. The volume on the weekly and the daily and the 240 minute is all in harmony. For intraday trading 5 minute, 10 minute, 20 minutes all in harmony. That was the big key point I look for in my trading setups.

I then have a basic trend indicator which is an Exponential Moving Average and I’ve exponential it again, so it’s a doubled exponential moving average. I’ve turned it into a dot not a straight line and I always want to see what the dot profile is. You’ve got to understand that a market can only do six things, it can trade up, trade down, it has a trend pause, it has congestion entrance, congestion, congestion exit and reversal. That’s all a market can do. And if you know where you are in any one trade it’s like riding a bicycle. You know when to hit the trend harder when you can see all 3 trends on all 3 timeframes are in your favour and you know when to slow up, tighten stops, when you go into that area of congestion that most people get flicked out in. So, that’s what I’m looking for.

You know, one of the biggest weaknesses of traders that I see going around (and I educate a lot of traders now) is that they have the inability to hold a trend. They come out too soon. So, by putting your trend indicator, whatever it might be, into a dot if you’re using a moving average, it just tells you that if the dot is greater than the previous dot then you’re in a trend run and if the trend dot goes flattish you know that you’re starting to enter congestion and you know you have tools and skills to be able to trade around that.

Timeframes that I use, I probably do about 60% of my trading on weekly daily, on the commodity markets and I hold things from anything up to 3 months. The rest of the time I’m spending on swing trading, particularly on the Forex. I like swing trading the 240 and 480 timeframe but I will never go against the daily dot direction. And if I’m at home I’ll go and do some FX trading first thing in the morning on the London open. But my preferred timeframe there is tick. I like to see tick speeds for intraday trading and time for swing and position trading. The reason that I like to see ticks is because I don’t want to see price within a certain timeframe I want to see price momentum and tick gives me that.

Risk reward, I’m incredibly patient. Trading is really like being a sniper. You know, you have to just sit there patiently quiet and wait for the perfect shot. So, I’m probably in the area of about 78% correct when I get in. And my risk reward that I go for, I use ATR’s a lot (Average True Range), and I’m looking for a market originally to go to 3x average true range, then 5x and then 7x. And if it goes through any one of those 3, 5 or 7’s then if it retraces above the next one. So if it goes to 7 I will close out when it goes above a 6 ATR down or up. So, that’s Average True Range over a 20 time bar, I just click on and it automatically shows me those areas.

And my yearly months return. I’d be disappointed if I don’t average out at about 138%p.a. is what I’m getting over the last 9 years or so.

Cam Hawkins: 

What does your typical trading day look like?

Nigel Hawkes:

My biggest day for trading for the week is Sunday. I look at 72 odd instruments ranging from bonds all through the commodities, the metals, the grains, the softs, then I go through all the monthly, weekly, dailies and I see what is setup there, what is my positions, what stops I should put in for the coming week and that takes me about 2 hours on a Sunday to do. Then the rest of the time, if I’m around on Monday, at the end of Monday I then look at what the currencies have done for swing trading. I don’t want to look at the end of the week because there are a lot of shenanigans that go on over the weekends and you can be flicked out if you’re not careful on commodities. So, on a Monday I look to see what’s been happening on the 240 minute against the daily and I will then enter some swing trades which will I will exit by the end of the week. And if I’m at home and particularly if it’s winter time I will trade the Forex as it opens on the London open, I do that at 7:30, I let the first half hour go through, that’s GMT. Then I look at the S&P and the bonds in the afternoon when they open in America. That’s my typical day.

My draw down experiences, well, let me just tell you. I use standard deviation, I use 2.5 times standard deviation over a 20 bar period and that is my stop loss. And that averages out at about 8 and a bit percent on average because it changes depending on its volatility. But it averages out at about 8% drawdown when I get stopped out.

Cam Hawkins:

In the beginning, what differentiated you from the average ‘Man on the street’ trader out there? What traits did you have, what actions did you take?

Nigel Hawkes: 

I’ve listened to some other of your contributors and they all mention this and all newbie traders disregard this. But you have to do a lot of work on your mental strength. Now, most traders, I’ll say the majority of traders who come to trading are well educated and learning the indicators quite frankly is the easy bit. You can all pick up what the MACD is doing, the Bollinger Bands, whatever you are following, all of you can follow that quite easily. But that takes 90% of the effort of everybody and I think 90% of the effort should be given to actually making you a complete sound person to handle the mental strengths of the price vibration. And what I mean of the price vibration is this. Remember what you’re taking is random price data, you’re then smoothing that into a timeframe and then you’re doubly, tripling smoothing that with all your indicators, etc. So you have to be concise in what you’re doing and by doing that and actually working on yourself you know that you’re trading probabilities you’re not trading whether Nigel’s or wrong, just probabilities.

I don’t like using the words “Winning Trade” for example. I have a plus trade or a minus trade. If it didn’t work out the probabilities didn’t work out. It wasn’t Nigel being wrong didn’t work out.

So try and be abstract and try and do some of the great work out there to help you become a mentally strong trader. Mark Douglas’s work is very good; Dr Van Tharp’s work is very good. In Hawkeye we have Hawkeye Mindset which is run by a guy who went and got a PHD working on trading and he runs that and he runs the Hawkeye Mindset area. But you must do the work.

I read a few years ago that electrical apprentices have a huge drop out. They have like a 30-35% and the reason for that is they get a belt when they’re learning to do the wiring in the houses and once they’ve had their first big belt from the electricity they become very cautious and they drop out from being an electrician. And when I read that I thought, “Wow, that’s just like trading”. Because in trading unfortunately the majority of you have to be a loser first. And while you’re being that loser you’re wiring your brain for fear and that’s why you can’t sit in trend runs and you have to be able to have mental strength to get over that.

Every great sportsman has a trainer and you need to go and do this. Until I got on a plane and saw Mark Douglas and he taught me about consistencies, probabilities and risk, I was useless. As soon as I got that edge I was off to the races.

Cam Hawkins: 

If you were a retail trader working a day job, what 3 steps would you take to start earning an income as a trader?

Nigel Hawkes:

That’s a great question. One of the greatest mistakes traders make is their timeframe and the biggest decision you make as a trader is what timeframe you trade. It amazes me that newbie traders, particularly who are trading the S&P, which is probably the most complicated and complex market in the world, with more professionals in it than any other market, go and trade a 5 minute. They’re just cannon fodder. It’s like saying I want to be a jockey, I want to learn to ride horses, and I immediately put you on a race horse and enter you into the Kentucky Derby. I mean, you’ve got to get a pony, a nag, start hacking and work your way up.

So, the biggest thing, if you’re starting to trade is to work out your timeframe. Most traders choose too fast a time frame. The reason for that is that they are under capitalised. It’s much better to trade slowly undercapitalised on a slower timeframe. And I’m talking 60 minutes, 240 minutes and above. Of course the brokers want you to do the short stuff, they love it, because you’re in and out making them lots of money. And you’ve got to be very careful between gambling and trading. That’s why you’ve got to move to these slower timeframes and then hit the trends when they come along and I’ll come to that later if we get into the system of trading.

So, I would tell them, do a 240 minute. There are many apps there that you can get now that will show you positions during the day and just do a 240, go slowly and get your strike rates up.

Cam Hawkins:

I can relate to that, diving into the 5 minute or 1 minute chart. I’ve done it just recently. I’m falling straight into those traps

Nigel Hawkes:

So did I, in the beginning I use to sit there and say “One day I’m going to be able to trade a weekly”, it should be the other way round. It should be “One day I’m going to trade a 5 minute”. When you’re trading a weekly, daily or 240 minute, it takes the pain out of it, of course.

The intra bar draw down, up and down, peak to trough is a lot greater but if the trend is with you, so what. Just sit there and turn stuff off.

Another thing I try and get people to do is to turn their P&L off on their charts. Don’t have the P&L show when you’re trading. You’re just a human and you’re going to be totally attracted to it like a moth to a fire. You’ve done all your work on a 3 minute and you look at your P&L and become a 1 second trader. “Oh, I was up 300, now I’m down 60. If it gets back to break even I’ll come out”. Boom, you’re out and it goes to 700. That’s where you would have got out. You know, turn that P&L off, it’s all part of mental protection.

Cam Hawkins: 

Can you explain to the listeners your preferred trading strategy, the ins and outs of how it works and why you choose this type of strategy over others?

Nigel Hawkes:

I devised my own system which is based around volume. By the way, I know I can say this at the end, but my volume indicator. I’ve got it for $97, so I want people to get this and use it. So I’ve tried to make it available to everybody. I use my volume on triple time frames. I then put on my trend indicator which has 3 trend inputs. Aggressive, normal and conservative and that’s all based around standard deviation. That’s showing me the markets speed up and slow down. Then I spend more work on my exits than I do on my entries. I think any fool can get a trend run, it’s getting out of the trend run that’s the hard bit. Again, I work very closely on my exits, seeing what the other timeframes are showing me. Then, my trend dot, which I explained at the beginning, and if you’re using the moving average make it a dot rather than a line, is starting to close up/go flat, I can see that we’re going into consolidation there. And I look at market structure. I look at last isolated highs/isolated lows (they would be Pivot high, Pivot lows). I work and see how all of that connects with itself. Trading is a flare, it is an art form. It’s a bit like reading sheet music. And I say in my seminars “If you’re tone deaf you can’t play the piano and if you don’t get this in 2 years, 3 years max, go and do something else. I just means that you can’t do trading”. There isn’t a system out there, it’s all about you and your interpretation and your risk and, as I said, what kind of personality you have. Going back to personality, Dr Reid who runs Hawkeye Mindset has a wonderful test which is a free test to define what timeframes you should trade. Because just like an athlete, some people are sprinters, some are marathon runners. And you should choose depending on your personality. And thirdly, guys if you’re getting over 40, the testosterone is leaching out of the body, you need desperately to go down to slower timeframes.

So, that’s what I’m looking at. I’m looking for setups where all are coming together. So, let’s say I’m trading a 240, daily and weekly. My weekly is going up, my daily is going up, my 240 has gone down and then it comes back up and “Bang” I’m in. I just want to go with that. And each time my 240 goes against my daily and my weekly and then hooks back in I add to my position, I add and add and add. And that is one of the things you really must do as a trader, is add to your winning positions. If you are trading a 1 lot consecutively, on every trade that comes along, you will slowly go down the gurgler. You’ll slowly go and disappear. But if you’re suddenly going (I have a formula) 1, 3, 2, 1. So, you’ve gone from 100 shares to 700 shares or 1 contract to 7 contracts you’re suddenly making money. You’re suddenly being able to go down to the garage and look at the Ferrari, you’re suddenly making capital wealth. If you just trade 1 contract you’re making what I call groceries. You can go to Walmat or Publics or whatever supermarket it is on a Friday and put some food on the table but you’re not going to make material wealth. Material wealth comes when you get in a trade like I have on live cattle or feeder cattle at the moment or crude or the bonds in particular. Go and have a look at the 240 minute on the Bond and then add to it keep adding to your position to a maximum multiple of 7 and then exit all at the same time. Then you’re making dosh and then you can relax and be happy because these trends only come along (most markets are in congestion 60-70% of the time. So it means 30-40% of the time you’re in trend run and you can really earn money out of that. But you can’t earn money out of it if you’re just on a one lot. You’ve got to go and hit the bugger and just hit it and hit it. Get up to your maximum, get out when it’s telling you to exit and then you’re making capital wealth.

Cam Hawkins:

And why did you choose Volume Spread Analysis over other strategies?

Nigel Hawkes:

As I said, when I went to the London Stock Exchange and I saw the guys really there, if you like, in a feeding frenzy. I liken it to, if any of the listeners have gone fishing. One of the first things you do when you go out on your boat is see where the seagulls are. Under the seagulls are the bait fish, under the bait fish are the big fish. That is volume. That’s where the action is, that’s where it’s all happening and that’s what I look for. My volume journey took a long time. I discovered Wyckoff’s work, I went out to Phoenix, Arizona, found his family there, managed to get hold of a copy of his original course notes. Got those back to England and started to dissect them and then had a real “Ah-ha” moment. The “Ah-ha” moment was this. There are people out there doing Volume Spread Analysis software but they don’t take into account the open of the bar. And the reason for that is because Wyckoff didn’t because in his day there wasn’t an electronic open. Now everybody in the world sees everything at the same time. In the 1920-30, it went Chicago, San Francisco, Los Angeles, Sydney, Tokyo, back to London etc… There wasn’t a definite open and I liken the open to an auction. If the Auctioneer opens something up at $100 and there are no offers at 80, 60, 40 and somebody comes in at 20 it will probably rally up to about 40. If your Auctioneer says 100 and it goes to 80 and a bid comes in it will probably rally up to $160. And it’s exactly that when you’re looking at Volume.

What I do is I look at the open, I take the open, the standard deviation between the open and the high, the open and the low, the open and the close, and I do that for the close as well. And then I weight them into a group of 20’s. So, from 20-15 has a certain weighting and then from 15-10, 10-5 and then the last bars are individually weighted. And that gives me the edge to show me what’s happening because markets are very structured, everybody thinks they are random, but they’re not, they are terribly structured. They go through the phase of accumulation, price move, distribution, accumulation. So they go sideway, up and then they come back down again and if it’s bullish they’ll stop at a higher price than the last accumulation, then they’ll accumulate there and go back up again and that’s why we get the zig zags in the market as they go up. That is particularly applicable to stock traders.

So, you’ve got to understand if you want a very good book on this “Stocks & Commodities” magazine have a little book “Trading the Wyckoff Method” which I think is about $15 and it’s excellent. And I would say, if you read that you’ll understand the majority of where my thought process started.

Cam Hawkins: 

If you split your trading up into technical vs fundamental, what would that split look like?

Nigel Hawkes:

I guess about 5% fundamental on the commodities and zero on everything else. On the commodity markets I want to know if there’s a drought, if there is something happening on crude, politically etc. But Volume will tell me. It is the DNA of the market, it is the fingerprint. So, whatever the fundamental boys are doing, let somebody else work it out and study it, I’ll see them bailing out and I’ll see it on my volumes. So, it’s pretty straight forward.

Cam Hawkins: 

Diving a little deeper, thinking about any price chart, what 3 things would you recommend a novice trader educate themselves on when reading a chart?

Nigel Hawkes:

Structure. That’s a very simple word to say and a very difficult word to explain. But basically, previous highs, lows, price tends to vibrate around fair value. So, draw some lines off your support and resistance where you can see markets have turned around and I’m only talking about 30 and 60 minutes and above. Under that it’s useless. That will give you the structure of the market so, put that structure on a 30 minute chart and if you do have to trade the 5 minute chart, look where the 5 minute goes to the structure on the 30 minute. Have a trend indicator on. The MACD funnily enough, I read something last week, is the most popular indicator out there for traders. Put your MACD on. I’m a little bit of a fan of a MACD, but they take you out of a trend too soon in my opinion but give you good entry points. But they’re not good for exits in my opinion. So that’s two.

The other one is, it just goes back to choose your timeframe. Keep it simple, the amount of traders I see who basically should be graphic artists as opposed to traders it amazes me, they’ve got every bloody thing on their screen possible. They’ve got trend lines, stochastic, RSI’s, Bollinger Bands. They’ve got everything there. The brain can only assimilate 7 things at a time. So, maybe only have one trend indicator, one RSI to show you the vibration around the trend, have some volume on and that’s about it. Keep it simple and put that on 3 timeframes and look for the harmony between the 3.

Cam Hawkins: 

How long did it take you to go from trading newbie to consistently profitable trader?

Nigel Hawkes:

I would say 3 years to break even, 5 years to being profitable and 7 years to really being financially terrific.

Cam Hawkins: 

What’s your mental approach to trading and what special techniques do you use to keep your emotions in check?

Nigel Hawkes:

You’ve got to remember when you trade there’s somebody on the other side. There’s some bugger saying “You’re wrong, I want your money”. So I always sit in silence, I do not have other things I. I know that you ask me about Bloomberg and things like that, I totally sit in silence and I have a big sign up in my trading room that says “Nigel, do not have an opinion, you’ll be wrong”. Do not have an opinion, don’t listen to thing. The amount of time I’ve had people telling me in the past 2 years that gold is going to go up. Yeah, they’ll be right one day but they’ve been very wrong for the last 2 years. Just sit there in silence and turn your P&L off.

Cam Hawkins: 

What’s your favorite entry setup?

Nigel Hawkes:

I think you all know it. Volume and 3 timeframes.

Cam Hawkins:

What strategies do you use to exit and manage active trades?

Nigel Hawkes:

I use my ATR indicator, it’s in most packages. You can just find out what your ATR’s are and it’s money management. So, I always put a multiple trade on. I never trade a 1 Lot. If I was trading a 1 lot I would encourage you to trade 3. So you take 2 off at the 3 ATR and let the 3rd one run. So you’re always booking 3 ATR’s profit and letting it run (this is for intraday trading) and I never give back more than 1.5 ATR’s.

Cam Hawkins: 

What’s your recommended “must read” trading book?

Nigel Hawkes:

Trading in the Zone by Mark Douglas. And also The way to financial freedom by Dr Van Tharp is also excellent. And there’s a great one, Reminisces of a Stock Operator as well. I started off on Gann. I did a lot of work on Gann in the early days. It’s a great journey and a lot of fun but I think it leads a lot to my trading, but I know it does to some. Certainly those books that I’ve just mentioned would be the ones, plus the other one I mentioned on Stocks and Commodities magazine website, Trading the Wyckoff method.

Cam Hawkins:

Do you automate parts of your trading? If so, what have you automated, why and how does it help you?

Nigel Hawkes:

I’ve automated the setup so I can look at a 240 chart and a green or red blog will come up when all other timeframes are in harmony. But I call it more of a Trading Buddy than anything else. Remember you’ve got two computers on your desk. The one in front of you and the one on top of your neck. So you have to use two of them together.

Cam Hawkins: 

If there was one thing you would recommend any retail trader spend the next month mastering, what would it be, why and how could they go about mastering it?

Nigel Hawkes:

I was going to say master yourself. You’ve really got to do work on yourself. If you don’t have mental fortitude, you struggle. It’s interesting; the traders I go round and educate the ones that struggle are the ones that have a mathematic background: Accountants, Doctors, Architects, Dentist’s. All of those people struggle with trading because they think it’s a zero sum game. The best people I have fall into two groups. Firstly would be women as they follow rules. They don’t have Testosterone to muck themselves up with. Secondly, Airline pilots because they follow rules but if it’s not working they go to plan B pretty quickly.

So that’s what I’d spend the next month in, understanding Wyckoff’s method of volume and also spending time on protecting your mental self from hijacking you.

Cam Hawkins:

What trading related internet resource, like bloomberg.com, do you always use?

Nigel Hawkes:

I only use the Forex Calendar for news in the day. But if you’re out for 240 minutes or higher, that doesn’t matter. But if I’m intraday trading that would be it. Otherwise I don’t look at anything at all. Forex Factory.

Cam Hawkins: 

What’s the biggest mistake most retail traders make?

Nigel Hawkes:

Timeframe, incorrect timeframe. They’re all trading too fast. They’re all trying to turn $5000 into $50,000. This is not a get rich quick system for anybody trading. They’re all trading the wrong timeframes. Go out to the long timeframes. Take mini contracts if you’re Forex trading. Mini contracts on 240 minutes then you’ll become profitable. Then speed up (if you have to, if you have to).

Cam Hawkins: 

What’s your preferred broker and trading platform?

Nigel Hawkes:

Tradestation is my preferred platform. I’ve been with that since it’s been invented. You can broke through them or you can use their platform and broke through another broker. I use Interactive Brokers for a lot of my trades.

Cam Hawkins: 

If there was one mantra or saying our listeners should reminded themselves of each day, to help improve their trading, what would it be?

Nigel Hawkes:

Don’t have an opinion, you’ll be wrong.

Cam Hawkins: 

If you could leave our listeners with one piece of advice what would it be?

Nigel Hawkes:

Go slowly. Try and be abstract from your trading. When I say abstract; losses (minus trades) are a part of trading. If you have minus trades they’re just part of trading, it doesn’t mean the system that you have is incorrect.

Cam Hawkins: 

Perfect! For those not in the know, my mastermind community are working towards creating a profitable trading system. If you’re not in the mastermind yet, just jump on 52traders.com and join today while it’s free.

So, Nigel, today your task is this:

We’d like you to help us find a high probability exit point for our trading system. We already have a market to focus on (namely the S&P500), and we’re looking for specific standard indicators, candlestick formations, market events, those sorts of things…

So Nigel, to help us pinpoint high probability exit points for our trading system what “3 golden nuggets” can you share with us today?

Nigel Hawkes:

Yes, one would be timeframe, which I’ve already mentioned. So, again, to make this correct for your trading system you’ve got to trade the right timeframe for it. The faster you go the more difficult it becomes. So, let’s suppose for this we’re using a fast timeframe. Let’s say we are using a 5 minute. I would have a 5 minute, a 1 minute and a 10 minute chart and I’d work around those timeframes. So that is one thing that I would look on.

For the other exit I would look at previous highs and lows off the other charts. So you can see where isolated highs and isolated lows are. Isolated highs are where the middle bar has a higher high and higher low than the preceding bar and the next bar. So when price comes up to that on a 5 minute, on a 1 minute chart I would look to be taking exits.

And remember the faster the trading system the less you are going to get trend runs. You’re going to go for profit targets. So, if you are trading a 1 minute on a 5 minute. I would look at running an ATR indicator on the bottom that would go through what the average ATR is off a 5 minute chart and let’s say it’s 2 for example, I would come off as soon as I’m up 2 points on my 1 minute. I wouldn’t go higher. You’ve got to keep going quickly, take profits. You know, how do fat men get fat and thin men stay thin? Fat men get fat by eating a little often and thin men stay thin by eating a lot rarely. So, if you’re intraday trading you’ve got to hit it for those small little bits all the time. But if you’re trading multiple contracts, those 3 contracts that I mentioned earlier, you can always take 2 off and let your last contract free to roam and you will know that when the trend expires; and you will know that with the trend dot (which I’ve told you earlier how to do) starting to go flat on your middle timeframe.

Cam Hawkins: 

Before we wrap up what’s the best way for traders to get hold of you?

Nigel Hawkes:

I have a website, it’s called HawkeyeTraders.com. If you want to email me directly, Nigel at hawkeyetraders.com, as I said to you. There is a special on the Hawkeye Volume indicator, $97 and that loads into MT4, Tradestation, NinjaTrader, eSignal and MultiCharts. There is also a free eBook on Volume which explains a lot about Volume understanding which is on the front page, you can download that. And when you download that it allows you to opt in to the weekly newsletters that I send out on Hawkeye.

One thing that I would like to mention here Cam at this point, is that I did not get into the business of indicator selling as a business. It happened by chance. People saw what I was doing and I said “Yeah, I’ll sell you these indicators, you can have them”. From that has mushroomed a business. I enjoy it immensely, I go round the world, meet lots of people, educate etc. And we are now have an office in North Carolina in America, we have a team of about 6 people around us and Hawkeye has turned into being quite a successful business. But you can go on, you can get the ebook that’s free. The indicator costs $97 and if you want to write and ask me a question, Nigel at HawkeyeTraders.com.

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