Overlays

What are overlays and how can they help traders?

Overlays have been developed to give insight into Trend direction. Overlays can help you determine when you should be looking to trade the Long side of the Trend or the Short side of the Trend, when used in conjunction with Hawk-eye (TS).

When the price nearly reaches or does penetrate the Overlay band it usually signals a change in Trend direction. When viewing Overlays in long time frames such as weekly charts or as per our example below, you can see when this correction occurs. In long time frames the correction can be quite deep and prolonged, so watch-out for them and plan your trades carefully. When the price gets near an Overlay be ready to trade in the direction of the new trend.

RELATED LINKS:
All HAWKEEYE examples
Shadows
Combining Shadows and Overlays