HAC & RAC - A Simple-Minded Approach

My satellite connection has too low transfer speed and daily traffic limit to watch video (that is Russia, 21-st century...) But thank you for answer.

При установке не забудьте поставить галочки на разрешение импорт dll и установить свой gtm(брокера).

Let's respect forum users and write english. Thank you.

Oh it's just that when I put on the indy there was a horizontal line that was set to "2" in the 'level' section of the indicator. No big deal. And besides, if it is set to '2', it would be only 2 pips, right?

Btw, your English is fine

You can set desired level in the "Levels" tab of the indicator property window. But if desired level isn't "0", then you have set three levels: "0", "+desired level", "-desired level". Then picture will be more readable. Of caurse, it's up to you.
And yes, DeltaHAC measured in Points, without any conversion.
By the way, DeltaHAC was built with iCustom() function, so original "HAC_v02.00_[KristopherStreeter]" indy has to be located in "Indicators" folder.

I'm so sorry... I've found bug in source code of DeltaHAC. There really was Level=2, but I didn't see it cause I trade #NIKKEI, wich hasn't decimal digits. That's why "0" and "2" levels seems like one level in indicator window, they are too close. Excuse me, please, and get fixed bug version:

What About News?

I want to pose a question; perhaps one that isn't asked that often because it's such an accepted thing that a person would feel stupid for asking it. I'm trying to figure out why people care so much about the news. What do you do with it? How does it change the outlook or the decisions that have to be made?

The only reason that I'm asking is that lately I've been getting comments or ideas about the news - not just from you vvFish Some people even turn off their systems when there's about to be a news announcement. Why is that?

I've worked on this system for years and never once considered the news while developing it. It just didn't occur to me I guess because, back in the day, I learned that most of the news is bullshit and worthless. Trading from it was a sure way to ruin. But maybe things have changed since then? I don't know. Maybe Forex is different from every other trading instrument out there.

All along my thinking on this has been that upcoming news events are for public consumption only. I can't bring myself to believe that large traders are surprised by any news announcement. That incident I related earlier about April 19,2001...now THAT was news! It surprised just about everybody - except for a few insiders that obviously positioned themselves to take advantage of it.

But even that incident, as powerful as it was, could not be sustained. In his arrogance, Greenspan thought he could scare the market into another bull run, but he failed miserably and used up the few bullets the Fed had left in its arsenal. The market continued down almost immediately - that very day in fact.

Thanks Rammstein!

Btw, I'm really liking this! It often shows up and coming turning points once those cycles align with the higher TFs. I'll be playing with this a lot more!

Kudos!

I was glad to benefit to your serious job

Yeah, it's definitely getting 'serious' now. I'm running out of money so trading is going to have to subsidize my life. But it's a position I wanted to be in so that's good. Thank goodness my wife is being patient with me!

I wish that your work was rewarded! Potentially trading has unlimited opportunities. Take them all!

Guess this computer's just to old, MT froze up on loading that benford onto the template,,, .
I read your post in regards to it being a resource hog a few days ago but wanted to try it anyway. Never mind I'll buy a new one soon.

Went to load them last night but couldn't find the template nor indicator, solved that one though the indicator was in the template folder, Wonder who put it there Dunno where the template got to though

Time for a Review

I introduced a major thing yesterday and as with all new things, sometimes the 'old' things get forgotten in the process.

Remember that locating large trader activity merely confirms the basic system. It shows where a lot of money has been invested; that money tends to both create and go with the general tide of the market. Our system is there to discover both the tide and its direction.

1. Basic signal:

When a signal occurs it will cross the red HAC line at the same time the RAC either:
a. crosses its own average
b. crosses down through 80 or up through 20
c. late crossings from the RAC tend to cause the market to pull back to the area of the crossing of the red HAC line. It doesn't mean the trade will fail, but it generally means that the stop shouldn't be too tight. There are exceptions to this of course, but it's a good rule to be mindful of.

d. when the market goes through one of the HAC lines and the RAC is nowhere near to crossing, the market will resume its original trend 95% of the time. When this occurs, there will generally be an RSI pullback trade on a higher TF

e. the RSI pullback trade occurs when the RAC is buried at one extreme or the other. (The rule is if it's above 80 or below 20, but if it's above 90-99 or below 10-1, it's even better) The RSI will then hit the other extreme while the RAC is buried. The market will generally hit one of the HAC lines. The green is best for a continuation because it shows the trend is quite strong. The red is ok too, but green is best.

2. Alignment of signals:

The largest and best and cleanest moves happen when there are very few periods between a signal from one TF to the next. If there are lots of periods in between, this generally indicates choppy waters ahead and perhaps even a failed trade. There are exceptions to this of course, but the next rule has a lot to do with handling those.

3. Alignment of Time Frames

When the green HAC on the next highest TF is a long way from the red HAC on the TF you're trading from, it means that the higher TF will not be offering its power to the trade. They don't have to be equal, just in the general area. For an M1 to M5 for example, a few pips apart is fine. For an M5 to M15, maybe 10 pips is ok and so on. There's nothing I can be definitive about here though. It's just something that has to be 'felt.' At times it will be very obvious though - especially after very large moves - where you should wait for the longer TF to 'catch up.'

4. Profit Targets

a. profit targets are drawn from the last pivot to the red HAC line where it was crossed (along with the RAC confirmation) and projected in equal increments. The ideal average target is 3x.

b. for a TF to reach the 3x level or higher, it will require support from the next higher TF (see rule 3). Otherwise, the target will be 1x or 2x. Also, profit targets from various TFs tend to overlap each other. A 2x on H1 might equal a 3x on M15 and so on. Sometimes this is good to know about because, say you have an 'unsupported H1 signal,' (meaning that the H4 alignment isn't there). This means that it will likely not hit a 3x. Instead it might go 1 or 2x. However, if the M15 is being supported by the H1, then see where the 3x and 4x are on M15. Whichever one of those is closest to the H1 x level is the one likely to be hit.

c. be mindful of higher TF profit targets like H1 & especially H4. Unfulfilled targets on larger TFs, when they exist, tend to cause lower TF trades to either not work out or not reach their intended profit targets. There are still decent counter trend trades, but some care should be taken to watch out for alignment on M1-M15 (see rule 2)

That should do it for now

Yeah... unfortunately a lot of my indys are real resource hogs! But in my next request to FerruFX, I might see if I can get a period limiter put on them. That way they'll run without too much trouble for most people.

It's funny, but I feel very rewarded already. At least I'm quite happy about the way this is all going. But a little $$$ would be welcomed too!

Why "LITTLE"? Words materialize, so call "REAL BIG $$$"!!! And they would.

LOL, well said Rammstein, dream big!

And thanks for that summary Almuten, I am going back over charts to see occasions where the high probability trades have occurred, and see if I can get a method to be able to spot them quickly.

Taken to heart my friend!

Hey Timo,

I have an idea but I don't know how to get it to work. Maybe somebody with some programming skills can give it a go. I've been thinking about this problem for a while and have toyed with various ideas but here's something that could work...but , this is just to give a 'heads-up.' I don't know if it could be traded from by itself.

Recall that the system is based upon one time frame nesting into another and so on. That's the whole premise behind it, right? When M1 gives a signal, the market will have moved beyond the HAC line by x number of pips.

Then, when M5 gives a signal, same thing. Then M15, H1, etc...

What if this were done:

(Close - M1 HAC) + (Close - M5 HAC) + (Close - M15 HAC), etc...

Maybe some kind of selection can be arranged to suit the trader's timeframe, like larger or smaller ones being turned off. Maybe a person wants to trade M5, so he turns on M1 thru M15 or something. Plot the thing like a histogram, shrink it down to where that's all you see of it and have a profile page that works like a screener. When something 'pops,' go look at the actual charts on another profile page.

There might be an issue however with calculation speed. What makes these indys resource hogs is the ever-adjusting cycle period. However, if all we're doing is using it like a screener of some kind, then precision isn't that important. And besides, when I first began working with this, I actually used a static cycle of around 24 periods for all the TFs and it gave good signals. I couldn't calculate accurate profit targets with it being that way, but the signals were pretty good overall.

I attached an indy that I used early on that might be of use if anybody wants to try this. It has none of the complex cycle calculations in it so it will calculate very fast.

I have been experimenting setting up my mt4 with 4 screens open, 5M, 15M, 1H and 4H on the one screen. It's a bit awkward though, I suppose I could save them as profiles for each instrument, and just scroll through the profiles, but still a bit cumbersome. Any one know of a better method?

Your idea Almuten, of say like a table, or like a matrix board where it's scanning all pairs and all time frames is the best idea. Lets hope a programmer gets on board and decides to help out.