HAS_Part_II(1).doc

If you look at the first indicator in the attachment, the 5M TF leads in "sentiment" change. When the bulls weaken, it shows on the 5M then creeps to the 15M and so on.

Attached Images

I have those examples posted on the thread entitled "Scalping Made Easy". Look here and open the attachments.

http://www.forexfactory.com/showthread.php?t=22669

HOW TO ADD 4TF HAS BAR & 4TF HAS2 BAR TO PLATFORM

1. In the experts/indicators drop down on the left side do this:

2. Drag and drop the 4TF HAS BAR to the right and drop it on the lower platform.

3. Drag and drop the 4TF HAS BAR2 to the right and drop it on the lower platform at the same place.

4. Make sure values are set for 2/6/3/2/0 Blue, Red, Black & 500 on both indicators.

It allows me to see a wick/body candle in two colors. The HAS will sometimes display a wick one color and the body another.

Shows a change in momentum.

In the EUR/JPY chart below, the no brainer entry is shown with three TFs turning blue at one time.
How would you have managed the limit, though? This is a tough one...
Steve

Attached Images

The rules say to exit when you have three wrong colored bars (short-cut explanation). The problem is the exit. I have always said this. I was hoping we could find a good exit strategy that wouldn't get us out prematurely.

I think we all agree that the entry is pretty clear. But once you have profit, you might want to close out 1/2 of your position and let the other go with a stop at B/E.

Also, I want to point out that USD/JPY is a countertrend move as the upper TFs are blue and I would be quick to close this out on the short as soon as you feel it could resume in the up trend mode.

Nobody knows if this is the start of a great short that will continue to drag the upper TFs down with them or simply a minor sell-off of the longer uptrend TF. In terms of odds, this trade should go back up.

Because this is a price driven method we can let price action dictate what we do.

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Attached is a traffic light indicator, which will sit in the top corner of your display showing time frames for M1, M5, M15, M30, H1 and H4. It gives a very quick view of the overall market trend, no more switching time frames!
 

This is the information I have on the indicator, I tend not use it for entry or exit signals, although you will see that you can, I just use it to gauge the market trend

The M1 & M5 give you the short term info as to reversals or retracements, the M15 & M30 give the medium condition, and the H1 & H4 give the daily trend condition. If the H1 & H4 are the same color, the trading range is generally large. If different color, the range is generally smaller and the trading tends to be choppy.

This can be located in either the top left or top right of your chart and has the option of either having the extra details ( Daily Av, spread etc ) or not.

The price color changes based on the average daily trend condition
LIME = UP ................. ORANGE = Flat ................. RED = Down

The MACD is based on a fast setting of 8/17/9 and has a quicker response than the standard 12/26/9 settings. If the MACD crosses UP while below the zero level, the color is GREEN. If it crosses UP while above the zero line, the color is LIME and for the cross DOWN if above the zero level, it is TOMATO and below the zero level RED. So if for example the price turns UP below the zero level it turns GREEN and then if it continues up thru the zero level it turns LIME which shows the move has some strength.

The STR is based on the average of RSI Period 9 / Stoch 5,3,3 & CCI Period 13
If all the indicators are showing an UP move, then the bar color is LIME, for a DOWN move RED and if some are UP and some DOWN, then ORANGE

The EMA is based on the cross of an EMA5 & EMA9
An UP move is a LIME Bar and DOWN is a RED Bar

The Daily Average figures change from red to green based on whether the range today is higher or lower than yesterday, so if the range was say 60 yesterday and 70 today based on the last 20 days average then the Daily average numbers would be GREEN.

The pips to Open change color from red to green depending on whether the Price is above or below the Open price for the day.

If all the lower timeframes are turning GREEN, then a reversal or retracement is on and if the M15 & M30 also change to GREEN, then it adds strength to the move. Of course it goes without saying if you are going to trade against the trend of the H1 & H4, then be very careful. Particularly the H1 gives the TREND STRENGTH for the current day either supported or not supported by the H4.
If both the H1 & H4 are the same color, then a currency pair will generally run past the Daily Average figures. If different colors or changing between colors, the Daily Average is about the top of the range for the day.

Attached is a chart showing the indicator in the top left!

Attached Files

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Thanks for this great system -- I have been reading through the material during the past few days and trying out your template on my charts.

I added the Non Lag indicator which has an alarm -- set to Length 34, and for me it completes this system nicely.

Attached Files

HAS Indicator - Another Method for Entering Midway

Consider this method another tool in your toolbox that you can use if markets have:

1. Trended strong already and you came in late with no entries available.

2. Markets are ranging and you want to scalp the market noise.

3. You prefer to take pieces of the market and book profits without risking the entire trade to a severe movement in the opposite direction.

These are just a few examples why we as traders would use or prefer as the primary system. I have traded this way in the past and like to close my position before the weekend or before bed time. I prefer this method as it fits my schedule and risk aversion.

I would prefer to have both threads active as I believe most of you would agree that they both will serve a purpose. Please let's not abandon the first thread and continually post to both methods. Even if you only post your results.

Here are the rules this method. I will attach the three indicators that make up the system as well.

What we want to accomplish is a method that buys on dips and sells on rallies. The most important factor to take in consideration is if you are in a trend up or down and if that trend is not too weak or over extended. That is key!

Once identified, the next challenge is to find a method that gets you in on a dip or minor correction when long, without that dip being the beginning of a new opposite trend, in this case a short. This will be the hardest hurdle to jump over to be successful. The reason is if you take that entry (dip or correction or backfill) and you go long and the move turned out to be the end of a long trend, you will suffer a loss and it's my job to get you out of that loss without much damage to your overall profit from all trades of this method.

Same thing applies to shorting the market. Just read and understand the above and reverse your thinking.

So to re-cap so far, we are going to look at a trend already in force either  trending up or down and find a way to scalp, if I may, the noise or backfills the market is making. Remember for you newbies that the market does not move in linear directions. It is constantly moving up and down like a staircase. Like a saw blade or stairs. It's this very phenomenon that we as traders will look for and profit from handsomely.

If the market trends up, it will be sold and the price will come down. For you techs we all know about fib levels, resistance & support, consolidation & distribution and just humans take profit or buying at low price opportunities which cause the market to fluctuate.

Let me start with the rules:

You need to load on your platform three indicators

1. Heiken_Ashi_Smoothed
1a Input setting are: 2-6-3-2
1b Colors are: Red, blue, red, blue.
1c. Width is: 1,1,3,3
1d. Style is: 0,0,0,0

2. 4 TF HAS Bar
2a Input settings are: 2-6-3-2... 1.0
2b Colors are: Red, blue, red, blue, red, blue, red, blue
2c Width is: 0,0,0,0,0,0,0,0
2d Style is: 0,0,0,0,0,0,0,0
2e Level style is: Silver

3. 4 TF HAS Bar2
3a Input settings are: 2-6-3-2-0 Blue,Red, Black
3b Colors are: Blue, red, blue, red, blue, red, blue, red
3c Width is: 0,0,0,0,0,0,0,0
3d Style is: 0,0,0,0,0,0,0,0
3e Level style is: Silver

You need to set your price chart on "Line charts" (candlesticks will work too) but I prefer line charts since we are dealing with closing prices only as candles will clutter up the chart.

Attached Files

So now you have your charts set-up with the three (3) indicators and you have your pricing set to "Line charts". Let's continue......

1. You choose a TF of your choice, let's use 5M. We want to go long in this example. By default you will have the MTF HAS indicator display four timeframes off to the right side of the indicator. They will read 5M, 15M, 30M & 1Hr. You can also confirm TFs just over the indicator itself which helps if you can't see the right side of your screen for whatever reason.

You will see those 4 TFs repeated twice since there are two indicators overlapping each other.

1. Back to the 5M TF. You look for the price by way of the "Line Chart" to penetrate the blue HAS candle. Once found you look below to see if the 5M bar that corresponds with that closing price is "blue" or a "red dot in the middle of a blue bar. Both are acceptable.

What I mean is on the lowest TF being the 5M in this example you look for the "price" (the close of the 5 min bar's price or value in PIPS. To do this please make your chart into a line chart (look at the top of your toolbar).

You want the price to rest or penetrate above (in a long position) the blue HAS candle.

If the 5M bar is blue take the next step:

2. Look at the next row above which is the 15M TF. If the bar directly above the 5M bar is also blue, you take the trade long. You don't mind taking this trade on a down closed candle since this is a minor sell of or correction and you are actually seeking this. The best entry is for the closed price to rest right on the HAS candle.

2a. You don't want or need confirmation to pull the trigger to go long. You just enter the trade on the opening of the next 5M bar. Close your eyes and just go long. Don't wait for any opening confirmation like conventional wisdom might suggest such as; the high exceeds the previous high, or an up closed candle etc etc. If you do, you will lose precious pips waiting for some up movement.

Some fine points for a successful trade

1. Here are some observations to keep in mind that will help assure you are in a good trending move which is detrimental to the success of the trade moving higher before the inevitable over exhausted trend.

1a Consider only going long on the 5M if the 30M (two rows above) is also blue.

1b Consider the 1hr row as well being blue since it has an effect too.

1c The 15M row has to be blue with NO exceptions

1d The 30M row if blue has less effect on the trade as compared to the 15M row but keep this in mind. The 30M row being blue helps the 15M row continue to stay blue.

1e The 1hr row has even less effect or importance but it too keeps the 30M from weakening to some minor degree.

If you don't understand this, you need to get some books on multiple timeframes. Martin Pring has a good one out.

Here is an example attached of what I have said thus far.....

Attached Images

Notice that all 4 TFs are blue. Remember we only care about the colored bar directly associated with the price. The bars to the left and right are irrelevant. Only the bars vertical count.

Rules to exit by

Legend
1= lowest TF
2= next higher TF
3= next higher TF
4= highest of all TFs

1. Take profit based off of your personal goals. Could be a fixed percentage, pips, resistance, fib, whatever. Remember the higher the TF you desire to trade on, the more pips you should expect to make. Don't go on a 4hr TF and try for 10 pips knowing you will stay in the trade based off of my rules that could have some swings that are much more then 10 PIPS. Be reasonable

1. Back to the example of the 5M long position that we are in. As soon as the closed bar on the next higher TF (2), in this case the 15M turns red, you exit. Don't wonder or wait, just get out.

2. If you are wondering if you could stay in longer if the next higher TF (3) is blue, the answer is I have looked at that and it works sometimes and other times no. I don't recommend it and it is extremely risky. So NO!

Some Q & A

Q. Do I get out when the lowest TF (1) turns opposite color. (TF that was used for entry)?

A. No. If you do, you are going to get out too early and you aren't giving yourself a fighting chance to make money

Q. Can I stay in longer if the next higher TF (3) is blue when TF (2) is red?

A. No. I have looked at this and it is too risky.

Q. How about staying in if the next higher TF (4) is blue and TF (3) is red?

A. I don't think you are paying attention. Why would that higher TF help you when that TF is much less meaningful?

Q. Should I exit if I get that blue dot in the middle of the red...