Shadows

What are Shadows and how can they help me achieve better results in my trading the Market?

Shadows have been developed to calculate with a high probability of accuracy Tops and Bottoms of Trading cycles. They do not usually give changes in overall Trend Direction but rather probable changes in trading cycles. Therefore, when a Shadow occurs, shortly followed by a Hawk-Eye Buy / Sell Trigger, usually a short term Top or Bottom has occurred, as can be seen from the example below.

Shadows operate on a smaller scale than the Overlay. The price tends to trade in the shadow band and when the price reaches or penetrates the shadow it usually signals that a change in cycle direction is around the corner. But remember these changes between cycle directions are quite short term when compared to Overlays. Based on how aggressive you are as a trader will determine if you will trade the long and the short side of the shadow.

RELATED LINKS:
All HAWKEEYE examples
Overlays
Combining Shadows and Overlays