Combining Overlays and Shadows

Overlays will almost always give you the overall trend direction but rarely give you the top or bottom of the short term trend. While Shadows will almost always give you the Tops and Bottoms of Cycle Trends, they will not give you the overall change in direction of the trend. When these two Tools are combined together and used with Hawk- Eye (TS), you now have an Explosive Trading System that will help you trade the long or short side with more confidence, see example below.

As you can see from the example, when a Shadow approaches an Overlay in the direction of the Shadow that trend is coming to an end and you should be looking to take advantage of the situation as it unfolds. So, if you were trading the long side of the trend and now it is coming to an end, start planning how you will start switching your trading activity to trade the short side effectively.

Shadows and Overlays combined

Shadows, Overlays and Triggers combined example 1

Shadows, Overlays and Triggers combined example 2

RELATED LINKS:
All HAWKEEYE examples
Overlays
Shadows