HAT Trading method

Trinity,

Yes, I'm using the 20MA; on MT4, I am unsure if it's the SMA or EMA. On VT, I generally use the EMA.

Certain software seems to be more condusive to easier trading.

For the HAT, MT4 seems superior to VT for actual trading; The reason I say this is:

First, MT4 is fast, where as VT is painfully slow. Also, I pull up a currency pair in MT4; and I click "1 Week". I stare at it for 5 seconds, and then click "1 day", and then stare at it for 5 seconds, and then click "4H" all the way down to 15M.

It shows me the "zoom in" view of things. this is easy and quick in MT4, not so in VT, as you have to wait for the screen to refresh, which takes a long time. So you forgot what the previous one looked like already. I can click quickly back and forth, zooming in and out of timeframes in MT4. In VT, I basically have to open all the item frames at the same time for 1 currency pair.

Just wanted to share my personal observation.

As for the 1 Sigma BB's. I am intimately familiar with them, having used them almost exclusively when I traded options (the squeeze!) and so I like them for the squeeze indication. But I've noticed that the T3 follows nicely the 1 Sigma BB's. This makes me wonder if the BB's are necessary. Still, I like to see volatility displayed on the same screen...

Quote:
As for the 1 Sigma BB's. I am intimately familiar with them, having used them almost exclusively when I traded options (the squeeze!) and so I like them for the squeeze indication. But I've noticed that the T3 follows nicely the 1 Sigma BB's. This makes me wonder if the BB's are necessary. Still, I like to see volatility displayed on the same screen.
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I like to see the volatility also, and the quick switch between time frames on MT4 is great. I like also to get the big picture which VWB and dynamic fibs give, while using the 4 and 1H for median quadrants.

BTW, under "moving buffer" in BB MT4, you'll find SMA on Close, so they are SMA.

Wow, twoblink, this is a great thread. I have been lurking in the background for a few days but just can't stay silent any longer. This is probably the best trend confirming method I have ever seen. Great discussion, too, thanks to smjones and many others...

Anyway, it was a great eye-opener and thank you for sharing it. This forum just amazes me...

Happy trading,

Dane

Chartwatch

I hour trend on the USD/CAD shows a HAT trend in play. 4 hour is onto the second bar.

I note the bottom lip on the DC opening up, so it should be a good move..

I highly recommend throwing "volume" onto the screen. That will tell you quite a bit as well.

This off the subject but I think this is the squeeze video someone was looking for...

http://www.tradethemarkets.com/video...lsqueeze2.html

Not sure what volume represents on my chart though - I'm using Interbank FX demo.

In MT4 it is the green lines on the bottom of the chart viewed by right clicking the chart and setting chart properties/common/show volume.

If you have an uptrend or downtrend, and the volume increases; then the trend looks solid to be continuing. If the volume drops drastically; be prepared to see a hammerhead or a doji; or worse yet, just a reversal.

Volume confirms a trend by its increase.

I've been looking at charts back weeks using this method and it seems darn near perfect. I'm impressed at how well it seems to work but also the simplicity of it (on the outside)...

My only issue is being awake to actually close out my trades. :-) The 4 hour charts seem to be best for this (although the 15 minute seems ok too) and with time frames so large there is a good chance I'll be in bed when it changes. So how do you set stops for this? Or for that matter, can an EA be created so that once the body of a bar passes the T3 it closes out the trade? Vice versa for opening? I'm using MT4...

And are there any thoughts on which time frames really are the best to use or are there any hidden gotchas with this that I'm just not seeing?

Jason

Jason,

As you "go longer" in the timeframes, things get smoother and smoother.. and smoother is good.. To a point.

The dailys was what the HAT was designed for..

However, for stops, I use the 1 Hour chart. The dailys move too much that if a whipsaw comes around, you won't know it until 2 days later. I think that's the current weakpoint of the system, a good place to put a stop.

As for exits.. I am testing a few rules, if they work out well, I'll post them here.

Someone I've been talking to just told me that when he looked at these indicators he thought that they repainted the past as time progressed. This made me think because one of my "test" trades earlier in the day ended up looking like it had been made in a different position than I had remembered. Was this just my imagination and is he incorrect about the trend "repainting" it's self? I would think it would be necessary for the past to remain unchanged for a set of indicators to be valid...

J

??? Unless your historical data is moving???

Time travel is impossible if you believe Einstein..

Yes I believe you are correct, current and previous seem to change.

Twoblink, is there any programatic way to determine if this is the case? This makes three of us that seem to think the indicators have somehow changed.

My reason for thinking it looked different was the placement of the order shown on my screen. It was in a position that I would not have made an order given what I was looking at. Of course I no longer have the chart (or remembe the pair) to show this...

And I believe Einsteins theory of relativity made it theoretically possible for time travel, not the other way around. :-)

I don't know if I should catagorize this as "interesting" or "disturbing".

The "only" thing I can think of at the moment, is to take a screen shot at multiple time intervals and then compare them.

Question, are you all using MT4??

Infinite Energy, and Time travel paradox does not permit time travel..

Yes, I'm using MT4 as is the guy who made the comment to me about it changing..

I'm using T3MA_Mod_2 and as far as I know there is only 1 version of the other two indicators..

Right now I have 4 currency pairs up, under 4hr windows and they all appear to be the same (have been up since yesterday). I'll pay closer attention..

At any rate, I'm up $100 on the USD/JPY downtrend so it can't be too bad. :-)

J

TwoBlink,

This looks really promising.

I use a 15m entry strategy and have had difficult defining exit spots. I've been looking at this to see if it could help and I'm thinking that you've given me a great solution to my problem. So, I might be using this a little different than the rest of the folks here.

With that said, I'm having trouble figuring out your entry criteria. Is it the close of the first bar who's HA body moves away from the T3 and into the DC? Or, is there a bit more criteria than that?

Thanks.

stockwet