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Attachments: HAS Indicator - Misc indicators & EA's
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HAS Indicator - Misc indicators & EA's

  • #101
  • Mar 4, 2007 11:11pm Mar 4, 2007 11:11pm
I do want to stress one more time that there is not just one way to enter and exit this indicator. If somebody put a gun to my head and asked the best set-up I would reply "Take my G-D damn wallet".

Sorry. Turrets syndrome. No really this is what I recommend:

1. Enter long or short on the lower TF. Again about 1-5 candles in the same color.

2. Look at the next longer TF. If the candles are going in the opposite color BUT the line chart is pointing and actually starting to penetrate the HAS candles that is good.

3. Third TF is not that important but if it shows signs of weakness i.e. wick:body ratio (Higher wicks and smaller bodies), HAS candles starting to hindge and price also hinging too you have an extra chance that your trend will continue longer.

So what I want is the lower TF to march forward in the desired color, Then I want the next longer TF to just start to change color. If you wait for the 2nd longest TF to already show the same color you have waited longer for solid confirmation BUT gave up some extra PIPS. Thise extra PIPS are usually a lot since price has the strongest velocity when price reverses.
  • #102
  • Mar 4, 2007 11:24pm Mar 4, 2007 11:24pm
Here is a snap shot of what an early anticipated entry LQQKS like. Study please and you will see how this baby works.
Attached Images
  • #103
  • Mar 5, 2007 6:17am Mar 5, 2007 6:17am
Quoting steinitz
Now for my questions.

1. Obviously a bigger candle body a bigger move but what does the upper wick tell us about the trend strength?
2. Why are there so many upper wicks compared to almost non-existent lower ones?

Any help would be greatly appreciated!!!!!!!

As you are aware HA is an average. HA candles are not the same as price candles and the HA candles do not represent OHLC levels the same way as a normal price candle.

The best way to look at HA is to pretend the that you are looking at a band of averages. For example in an up trend the blue HA candles represent the spread of the average...so in a strong trend if you had multiple moving averages (like 3,12) you would see them spread apart and moving upwards.

As the trend diminishes or reverses, the average band narrows and then crosses. This is exactly what happens in HA; the candles get smaller and you start to see small wicks, double wicks or low wicks.

In otherwords, you see more low wicks in HA during a non-trend (whipsaw) phase simply because the average is whipsawing around. In an up trend the HA is typically 75% below the Hi so you almost always see hi wicks. In the low trend the HA is typically 75% below the Hi so you almost always see the hi wick.

The low wicks appear when the average is squeezing together, whipsawing or there is about to be a reversal.

One good indication of a reversal or end of a trend is a double wick HA candle. They almost always preceed the end or signal the beginning of a trend.

If you want to see this more clearly, simply add a rainbow of Moving Averages say from 3-12 and you will see the averages moving with the candles and you will see clearly how the HA average works and why there are so few low wicks.

The HA is not the same as moving averages, as the HA averages are calculated differently. However, the MA's will give you insight into what the HA wicks and candles are doing and what they mean.

I feel you get far more information from the HA Smoothed than from Moving Averages as the HA does not lag as far back as MA's do. If you learn to read the HA candles (which takes practice practice practice) you will gain powerful insight and make lotsa pips.

I have one added indicator that helps...see next post.
  • #104
  • Mar 5, 2007 6:35am Mar 5, 2007 6:35am
The Aroon indicator added to the HA Smoothed will give you early insight into what HA is going to do.

Many people don't use the Aroon because they look at it and say "WTF"! Which was my reaction until someone taught me how to use it.

This is how I learned to use the Aroon and use it every day with the HA Smoothed. It works very well.

I actually use the Aroon Horn indicator which was adopted for MetaTrader, but there is no real difference between it and the normal Aroon.

The Aroon has a red line and a blue line. The scale is 0-100 and represents a percentage. You want 3 level indicators on your Aroon, 70,50 and 30.

A strong up trend is when the blue hits 100 and stays above 70 while the red is below 30.
A strong down trend is when the red hits 100 and stays above 70 while the blue stays below 30.

Your buy signal for Long is when the blue line hits/crosses the 50 level, coming up from 30. I use HA Smoothed to confirm entry, but sometimes I wait until the blue hits 100 if the HA is not lined up yet.

Your exit signal for your Long is when the blue drops from 70 to 50...get out, expecially if the red is moving up from zero and is at 30 or 50.

The sell signal works the same with the red line.

The further apart the red and blue lines the stronger the trend.

If the red and blue lines are together, you are usually in a flat pattern with whipsaws.

I typically read the Aroon from the 1 Hr, but like HA I like to use at least 2 time frames to confirm...usually 30 min and 1 Hr.

There is more to the Aroon than I can express in words that comes from experience in using it. Again, this is an indicator that takes some practice when used with HA, but is extremely powerful for entry and exit into trends once you get the hang of it. Just watch it over and over for a week and what it does with the HA Smoothed and you will see the how they work together.
  • #105
  • Mar 5, 2007 7:29am Mar 5, 2007 7:29am
Hi Spudfyre,
Thanks for the detail on how you use the Aroon! Sounds interesting I'd like to try it with the HA....Could you please post a copy of the Aroon on this thread.

Thanks & Regards

Cosmo II
  • #106
  • Mar 5, 2007 7:33am Mar 5, 2007 7:33am
I'm loving this thread.

Anyway, I have been looking at this system. It appears to me (unsurprisingly) that a lof of failed trades appear to be at times of either low volatility, or periods of poor 'volatility quality'.

I wondered whether or not the attached indicator is a valid filter, using the same 3 period setup.

I don't want to 'interefere' with what appears to be a good system to start with, but figured that some people would be interested in this.
Attached File(s)
File Type: mq4 VQ.mq4   7 KB | 1,767 downloads
File Type: ex4 VQ.ex4   11 KB | 1,615 downloads
  • #107
  • Mar 5, 2007 8:15am Mar 5, 2007 8:15am
Thanks for that post spudfyre, really helped me out.
How do we get the aaroon indicator ? ive got metatrader, but just not sure how to get aaroon indicator?!
thanks a lot.
  • #108
  • Edited 8:48am Mar 5, 2007 8:28am | Edited 8:48am
Hi Spudfyre,

Great explanation...just a couple of follow up questions - since I am trying to recreate this specific smoothed HA indicator on a different platform.


You said: For example in an up trend the blue HA candles represent the spread of the average...so in a strong trend if you had multiple moving averages (like 3,12) you would see them spread apart and moving upwards.

The spread of the average means what? The spread between the averaged Open and Close vs. the averaged High and Low?


Based on the code that was previously posted by Steinitz, I have been able (I think) to determine the formula. It seems that a smoothed average (6 periods) of the H,L,C,O is obtained. With those values the HA formulas are applied to get the HA values.

Finally, an EMA (2 periods) is applied to those HA values to get the ones that are painted.

What I don't understand yet, is how these values are painted (trying to figure out how Metatrader applies SetIndexStyle and SetIndexBuffer to paint bars).

This is why I asked about the spread - I think this would give me more insight into how this thing is plotted / painted.

Any help is always greatly appreciated!
  • #109
  • Mar 5, 2007 8:29am Mar 5, 2007 8:29am
Quoting leeroy brown
Thanks for that post spudfyre, really helped me out.
How do we get the aaroon indicator ? ive got metatrader, but just not sure how to get aaroon indicator?!
thanks a lot.
Here it is...
Attached File(s)
File Type: ex4 Aroon Horn.ex4   2 KB | 1,272 downloads
  • #110
  • Mar 5, 2007 8:49am Mar 5, 2007 8:49am
Quoting stepwise
Hi Spudfyre,

Great explanation...just a couple of follow up questions - since I am trying to recreate this specific smoothed HA indicator on a different platform.


You said: For example in an up trend the blue HA candles represent the spread of the average...so in a strong trend if you had multiple moving averages (like 3,12) you would see them spread apart and moving upwards.

The spread of the average means what? The spread between the averaged Open and Close vs. the averaged High and Low?


Based on the code that was previously posted by Steinitz, I have been able (I think to determine the formula). It seems that a smoothed average (6 periods) of the H,L,C,O is obtained. With those values the HA formulas are applied to get the HA values.

Finally, an EMA (2 periods) is applied to those HA values to get the ones that are painted.

What I don't understand yet, is how these values are painted (trying to figure out how Metatrader applies SetIndexStyle and SetIndexBuffer to paint bars).

This is why I asked about the spread - I think this would give me more insight into how this thing is plotted / painted.

Any help is always greatly appreciated!
What the spread means between averages is open to interpretation. One can say that with averages of any kind they always move to criss cross each other.....so the argument can be made that the further apart they get the more likely they are going to come back together. The argument can also be made that as they start to spread you can be in a stronger trend....until the averages move back together which usually means the trend is dead or the market is reversing.

Typically why MA systems are difficult is the reversal is already made by the time the MA's cross each other from there lag. So the trick with getting good results with an MA system is looking for that spread and figuring out when the MA's are going to come back together...before they actually do.

Put an MA 3 and an MA 12 on your chart. You will notice in an uptrend or down trend how these MA's split apart. For example in an uptrend the 3 MA is above the 12 MA.

Similarily with the HA, the HA candles lengthen where an uptrend you will see longer blue candles.

With HA the candle body is the actual average, so the candle body is your "average spread" between the highest average and the lowest average.

The wick of the HA, is where the edge of the average started when the HA candle first opened. So, as the averages squeeze together you will see wicks.....because the way HA is calculated you will usually only see hi wicks, but occasionally when the average starts to squeeze tight you see double wicks (hi and lo).

This is a simple explanation. As you are probably aware, MA's tend to wiggle closer together and farther apart during a trend and this is why most MA systems concentrate on crosses.

In HA you see that "cross" when you see small candles or a candle body one colour and the wick a different colour. You also see the averages cross when you go from a HA blue candle to a HA red candle or vice versa.
  • #111
  • Mar 5, 2007 9:06am Mar 5, 2007 9:06am
Quote
With HA the candle body is the actual average, so the candle body is your "average spread" between the highest average and the lowest average.

The wick of the HA, is where the edge of the average started when the HA candle first opened. So, as the averages squeeze together you will see wicks.....because the way HA is calculated you will usually only see hi wicks, but occasionally when the average starts to squeeze tight you see double wicks (hi and lo).
Thanks Spudfyre!

I definitely get the concept of averages and spreads since I use spread histograms all the time (Stochastics).

What I need to understand is the actual representation of those spreads for this particular indicator.

Let's take this scenario:

haOpen, haClose, haHigh, haLow

I just need to know with these values (assuming all calculations and smoothing has been done to reach these values for a bar) how is the candle body and candle wick calculated.

I.e. Wick = range between haLow and haHigh?
Body = range between haOpen and haClose?

I know there is more to this since I would not get a red wick on a blue candle with those simple calculations.

Again, thanks for the info and help!
  • #112
  • Mar 5, 2007 9:08am Mar 5, 2007 9:08am
Quoting rogerha
I'm loving this thread.

Anyway, I have been looking at this system. It appears to me (unsurprisingly) that a lof of failed trades appear to be at times of either low volatility, or periods of poor 'volatility quality'.

I wondered whether or not the attached indicator is a valid filter, using the same 3 period setup.

I don't want to 'interefere' with what appears to be a good system to start with, but figured that some people would be interested in this.
Interesting indicator. I was doing a little research on it and found that 7,3,7,7 seems to work very nicely on the 1H chart.

It is almost too nice. Do you know if this indicator repaints?
  • #113
  • Mar 5, 2007 9:23am Mar 5, 2007 9:23am
Quoting Spudfyre
Interesting indicator. I was doing a little research on it and found that 7,3,7,7 seems to work very nicely on the 1H chart.

It is almost too nice. Do you know if this indicator repaints?
No it doesn't, to my knowledge, and if you set realtime to false, it only updates on Bar Close (which is my preference). Its a well filtered version of the Volatility Quality Index by Thomas Stridsman.
  • #114
  • Mar 5, 2007 9:26am Mar 5, 2007 9:26am
Ineterstingly, it signalled the potential end of the short on cable on all three timeframes simultaneuously a few moments ago (15,30,60).
  • #115
  • Mar 5, 2007 9:50am Mar 5, 2007 9:50am
Quoting stepwise
Thanks Spudfyre!

I definitely get the concept of averages and spreads since I use spread histograms all the time (Stochastics).

What I need to understand is the actual representation of those spreads for this particular indicator.

Let's take this scenario:

haOpen, haClose, haHigh, haLow

I just need to know with these values (assuming all calculations and smoothing has been done to reach these values for a bar) how is the candle body and candle wick calculated.

I.e. Wick = range between haLow and haHigh?
Body = range between haOpen and haClose?

I know there is more to this since I would not get a red wick on a blue candle with those simple calculations.

Again, thanks for the info and help!

The original HA works off this formula:

  1. haClose = (Open + High + Low + Close) / 4
  2. haOpen = (haOpen(previous bar) + haClose(previous bar))/2
  3. haHigh = Maximum(High, haOpen)
  4. haLow = Minimum(Low, haOpen)

This is my thought, whether it is right or not.....

Working on a blue HA candlestick:

When a new HA stick first opens...you have the bottom of the candle body which is the haOPen and the top of the candle body which is the opening price.

The candlestick body is calculated at the close of the stick which is haOpen and haClose.

The hi wick which is the whatever the hi price was above the calculated haClose.

A lo wick is whatever the lo price was below the closing calculated HA candlestick body.

The "average" spread is between the calculated HA candlestick body (haOpen to haClose).

That's regular HA. I haven't dived into the math of the smoothed version.

  • #116
  • Mar 5, 2007 9:52am Mar 5, 2007 9:52am
Quoting rogerha
Ineterstingly, it signalled the potential end of the short on cable on all three timeframes simultaneuously a few moments ago (15,30,60).
Can you share what input settings you are using for the 15,30,60?
  • #117
  • Mar 5, 2007 10:06am Mar 5, 2007 10:06am
Quoting Spudfyre
Can you share what input settings you are using for the 15,30,60?
Just the default, although I beleive 5,3,1,2 has been popular !
  • #118
  • Mar 5, 2007 10:29am Mar 5, 2007 10:29am
Quote
The candlestick body is calculated at the close of the stick which is haOpen and haClose.

The "average" spread is between the calculated HA candlestick body (haOpen to haClose).
Right, so if I understand you correctly then the body is in fact the range between haOpen and haClose.

Quote
The hi wick which is the whatever the hi price was above the calculated haClose.
Does this mean the High or haHigh above the haClose? Or does it mean whatever was higher between the High and haHigh?

Quote
A lo wick is whatever the lo price was below the closing calculated HA candlestick body.
For a blue candle this would mean the Low or haLow below the haOpen?

What I still don't understand is how a red wick would be determined on a blue candle.

Really sorry for the bantering but I am obviously missing something.....

Your patience is VERY much appreciated.
  • #119
  • Mar 5, 2007 11:40am Mar 5, 2007 11:40am
Quoting steinitz
Ranging markets are a problem from any trend following system. One way to avoid getting stopped out when looking for new set-ups is to look at longer trends that are already in place. Take a currency for example on a 1H TF. Now it's been trading down for some time (red candles) now and the wick:body ratio is ok and not showing much change in momentum.

Go ahead and get on the 30M TF and look for the candles to go blue. As soon as the candles are going blue (contra-trend) wait for the blue ones to start losing momentum (smaller candles etc) and get in short on the FIRST red candle.

What you have done is re entered on a sold down trending move at the right time!
Thank you very much.
  • #120
  • Mar 5, 2007 11:42am Mar 5, 2007 11:42am
Quoting stepwise
Right, so if I understand you correctly then the body is in fact the range between haOpen and haClose.

Right.

Does this mean the High or haHigh above the haClose? Or does it mean whatever was higher between the High and haHigh?

High price above haClose. The haHigh is the maximum.

For a blue candle this would mean the Low or haLow below the haOpen?

What I still don't understand is how a red wick would be determined on a blue candle.

I believe the red hi wick on a blue candle would indicate that the highest low exceeded the haClose. In otherwords the haClose went down but did not go lower than the haOpen (blue candle, red hi wick).

Really sorry for the bantering but I am obviously missing something.....

Your patience is VERY much appreciated.
Answers above.

To help, start from observing the opening of each HA candle and then comparing what it does on the close of the candle (live).
If you remember that the haClose and haOpen define the candle body and the wicks are hi's and lo's beyond this average you'll get the idea probably better than I am explaining it. I found it easier to digest HA by watching it live on the 5 min and to watch what was happening to the body and wicks as priced moved and then what the HA candle finished as.

The other thing to work on understanding HA is using multiple MA's...I've used 2,4,6,8,10,12,14 with different colours. If you watch this ribbon and how it moves, squeezes, flips, and what HA is doing you can get a pretty good idea of what is hapening with HA. Just remember HA and Moving averages are calculated differently, but the movement of both is relatively the same. I don't use MA's to trade btw.

However feel free to keep asking questions.
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