HGI used with Hurst charts

[TraderJoeForex]

I should also say a huge thank you to Pedro2 for starting this thread at the forum. Following along with Bob for the last few years I have learnt lots and continually refined my trading.. however it is this 5/11TMA aka HURST ideology that completes the jigsaw for me.. it is along the same lines as Alorente's Extreme TMA which I could never quite make work for me .. and now I know why. This has clarified everything and I am so grateful. So here we go.. an early HAPPY NEW YEAR to all the greats: STEVE firstly.. and ALL the wise contributors here for enabling this helpful place of learning (RADAR a great example repsonding to my request and query so quickly this Chistmas week.. and I observe so many others always helping others .. awesomeness, really!), BOB for all the unconditional teachings for so long, ALORENTE for explaining your way with TMA, and PEDRO2 for what I consider a refinement and consolidation of everything that has come before. Team I salute you. Here we have something special.

[Cherry]

The TMA band (blue/red dotted) is H4 11period and the white (solid) line is H4 5period centerline.
The blue/red solid is H1 5 period and chocolate dash H1 11 period
The OBV TMA True's are 5 and 11 TMA for current period. I only enter/exit trade when both have closed one period showing slope moving with/against the direction of planned trade ( or if I can't observe the trade unfold I set tp based on conservative 60% fib for hurst extention)

Give it a go and let me know...

Trader Joe, would you mind pointing me to the OBV TMA you are using here please? I downloaded the one that has the same name but it appears quite different (more colours etc.) Also I would appreciate you telling me exactly what changes you've made to the settings. Also if using this on D1 would other settings be necessary. Sorry for my ignorance with this indi, but this does look interesting and I'd like to investigate further.
Many thanks, Cherry

[TraderJoeForex]

Hey Cherry,

The OBV Trueslope indi was done by Neotrader (he is the expert here on all indicators TMA) and http://www.stevehopwoodforex.com/phpBB3 ... f=45&t=857 is the thread with explanation for the version I use.

I've attached screen shots of my settings for you as requested and explantion of the way I use below:

I have learnt not to use a range threshold with TMAslope indis but to pay attention to the change in slope from each previous bar instead so I choose my settings to color an upward change in slope (compared with the previous candle) blue, regardless whether +ve or -ve, and increasing downwards slope red. i.e if the slope is steeply down say - 1.8 reading and next candle closes with -1.6 reading then that is color changed from red to blue and a signal of short term reversal for me which with other conditions satisfied can help confirm a trade entry ( for example with a H HH LH or L LL HL sequence potentially forming but not confirmed when still on the 3rd bar).

I find that the use of slope in this way can pre-empt the best entry whereas waiting for slope to enter +-0.4 or thereabouts as range, although safer and more logical in some ways, I find spoils the best entry and substantially reduces the risk-reward on a lower timeframe (H1 or lower). This was the bit I always found so frustrating with the Extreme TMA system by Alorente.. by the time all the conditions for a trade was met with all TMA's ranging or moving into the direction for a trade, price action would already be moving to a point of support or resistance with a retrace to follow and that is if my entry was spot on... (not usually!). If the entry was too early or late then the initial drawdown was demoralizing for me. Also I probably laked the patience and skill to enter correctly at the time.

I prefer trading lower expectations with momentum. I have learnt that it may take several entries to catch the start of a trend and I am happier grabbing a few pips on two or three trades while the slope turns direction than entering too late just in time for the first retrace of the new trend which I always use to do!

I thought best to add my explanation for the way I use this indicator .. and I can only stress that monitoring one TMA period on one timeframe is NOT sufficient to make a trading decision. I use the OBV_TMATrueSlope for 5 and 11 periods to give a bigger picture than the lines on chart alone on current timeframe (and with more information that a TMA histogram which can only display up or down and often jumps between the two around a turn until price action settles into the new direction).

The OBV_TMATrueSlope (with OBV and Truemode set to true) only refreshes the current bar according to price action so once a bar is closed it is what it is and I feel far more comfortable trading on the confirmed slope direction of the previous bar and only when BOTH 5 and 11 TMA slopes are in synch and interpret this as the new direction of market momentum (although this reading in isolation could be very short lived or over by the close of the bar, when read in conjunction with the hurst crossover and targets simply provides timing to a turn in direction that we are already expecting thanks to hurst and generally if price overshoots it won't be that far unless action is breaking out due to news and I avoid trading this way then).

I use the TMA band to show a higher timeframe picture for 5 and 11 as a guide (so H4 on H1 or W1 on D1) and although these current directions are only estimations that may well change based on current price action the estimation is accurate enough for me as a guide to likely longer term direction

Ok so my trade rules below:
**current timeframe 5 and 11TMA slope must be shifting in the same direction (i.e. OBV_TMATrueSlope previous closed bar is blue for both 5 and 11 for a buy or red for both 5 and 11 for a sell - I am not bothered with the actual slope numbers just the direction shown in the previous bar relative to two bars back on both)

If highertimeframe 5 and 11 do not slope in same direction then I will trade lower timeframe (only where above rule for current timeframe is satisfied) but these trades I watch carefully and would exit around 60% fib hurst extention and consider these trades a cheeky bonus.

If both the 5 and 11 on higher timeframe are approximately level (ranging) then I will trade both ways on lower timeframe (only when above rule for current timeframe is satisfied) and again exit around 60% fib hurst extention.

If both the 5 and 11 on highertimeframe are sloping roughly in the same direction then I don't trade against this on the lower timeframe (even if lower timeframe 5 and 11 do agree).
Instead I eagerly await for the lower timeframe 5 and 11 to make their turn into this highertime direction and these are the happy days where I can hold for 160%fib of hurst extention or thereabouts with a close stop. Interestly these setups often correlate with a trend wavvy AND Trend arrow from HGI and as Bob says it's worth going large on these trades.

Overall I use the picture given by the 5 and 11 TMA's on current and higher timeframe as the framework to place trades and do my best to rely more on finding the L LL HL or H HH LH sequence to enter/exit as my trade triggerrs (around the fib hurst extention targets but often giving a better entry when I have the time) With HGI (plus hurst filter v15.08) on the chart I try and get there first myself for a correct entry. HGI Matrix reminds me quicky the opportunities I miss and wakes me up if I've got the direction wrong (or were indeed asleep!)

This is more than you asked for Cherry but I hope this helps.. if any further explanation is required do let me know.. happy to share all I can if this assists in any way ..

While I am at it Steve when you read this perhaps the above rules could be worked into an alternative EA in due course using 3 pending orders (placed at the countertrend hurst target fibs.. perhaps 60%, 99% 160% (1% allowing for spread)) - i.e. these extentions as entry levels instead of TP when price action is CT) . As soon as the hurst target indicator (where 5 is moving against 11) prints the crossover and targets on the chart I trust fairly easy for an EA to place pending order for entry which will be back into the highertimeframe trend. (and/or if a HGI trend arrow forms in the meantime just enter of this aswell/instead). Conservative TP would then be the new hurst target after next TMA crossover, sit out for a half cycle then back in again each time into the trend.

I will be trading this manually for January and will update how I get on if anyone is interested.

Steve PM me for more detailed trading rules if you have the time to create this EA in the meantime.. if not once manual trading proves itself I'll surely be coming to you

[Cherry]

This is more than you asked for Cherry but I hope this helps.. if any further explanation is required do let me know.. happy to share all I can if this assists in any way ..

I will be trading this manually for January and will update how I get on if anyone is interested.

Thanks heaps for the detailed explanation!! I'll digest this and see how I go.
I gather you are saying there is no change to the indi colour once the bar has finished, so looking back what you see is accurate?!

Your update will be interesting.

[TraderJoeForex]

Hey Cherry,

Yes that is correct with the OBV_TMATrueSlope as long as truemode is selected in the settings then only the current bar will adjust according to price action during that period. Once bar has closed unlike TMA bands or most TMA bassed indi's the OBV_TMATrueSlope will ignore the future part of the TMA equation.. so it's not really TMA but hey it's a derivative and the OBV calculation seems to tighten the prediction. Just remember if you are looking at charts with other TMA based information on it like the centered TMA 5/11 lines, hurst target etc these will adjust with future price action. I find it useful to take a screenshot at the start of each period or when I place a trade for reference later to compare to what the chart shows looking back.

Good luck and enjoy!

[Cherry]

Thanks Trader Joe. I see in your colour settings you are still showing yellow, yet your charts only show Blue or red??!!

[slowkey]

Radar ...
Pip400 ...

When I adjust the extension limits the below crossover extension adjust OK... however when a above crossover occurs there is no change in the limits.

There is a bug in the logic I think. The white extension box does not change in the above crossovers. It does however in the below crossovers.

Code: Select all

if (direction == "above")
   {
   double hurstextension1 = crossovervalue + MathAbs(crossovervalue - lowpoint);
   double hurstextension2 = crossovervalue + MathAbs(crossovervalue - lowpoint)*0.5;
   ObjectCreate (0,"hurstextensionzone",OBJ_RECTANGLE,0,crossovertime,hurstextension1,TimeCurrent(),hurstextension2);  
   ObjectSet ("hurstextensionzone",OBJPROP_COLOR,hurst_extension_colour);  

   }

GBPUSDH4.png

Cheers,
Doug

[pips400]

Thanks Doug for spotting that.

Here's the updated version

Happy new year

[slowkey]

Thanks Pips,



Nice indicator. I will put it to use after some sleep ... zzzzzzzzzzz

Happy New years

Doug

[Pipstubborn]

Hey Cherry,

The OBV Trueslope indi was done by Balud4u from memory (he is the expert here on all indicators TMA) and http://www.stevehopwoodforex.com/phpBB3 ... f=45&t=857 is the thread with explanation for the version I use.

I've attached screen shots of my settings for you as requested and explantion of the way I use below:

I have learnt not to use a range threshold with TMAslope indis but to pay attention to the change in slope from each previous bar instead so I choose my settings to color an upward change in slope (compared with the previous candle) blue, regardless whether +ve or -ve, and increasing downwards slope red. i.e if the slope is steeply down say - 1.8 reading and next candle closes with -1.6 reading then that is color changed from red to blue and a signal of short term reversal for me which with other conditions satisfied can help confirm a trade entry ( for example with a H HH LH or L LL HL sequence potentially forming but not confirmed when still on the 3rd bar).

I find that the use of slope in this way can pre-empt the best entry whereas waiting for slope to enter +-0.4 or thereabouts as range, although safer and more logical in some ways, I find spoils the best entry and substantially reduces the risk-reward on a lower timeframe (H1 or lower). This was the bit I always found so frustrating with the Extreme TMA system by Alorente.. by the time all the conditions for a trade was met with all TMA's ranging or moving into the direction for a trade, price action would already be moving to a point of support or resistance with a retrace to follow and that is if my entry was spot on... (not usually!). If the entry was too early or late then the initial drawdown was demoralizing for me. Also I probably laked the patience and skill to enter correctly at the time.

I prefer trading lower expectations with momentum. I have learnt that it may take several entries to catch the start of a trend and I am happier grabbing a few pips on two or three trades while the slope turns direction than entering too late just in time for the first retrace of the new trend which I always use to do!

I thought best to add my explanation for the way I use this indicator .. and I can only stress that monitoring one TMA period on one timeframe is NOT sufficient to make a trading decision. I use the OBV_TMATrueSlope for 5 and 11 periods to give a bigger picture than the lines on chart alone on current timeframe (and with more information that a TMA histogram which can only display up or down and often jumps between the two around a turn until price action settles into the new direction).

The OBV_TMATrueSlope (with OBV and Truemode set to true) only refreshes the current bar according to price action so once a bar is closed it is what it is and I feel far more comfortable trading on the confirmed slope direction of the previous bar and only when BOTH 5 and 11 TMA slopes are in synch and interpret this as the new direction of market momentum (although this reading in isolation could be very short lived or over by the close of the bar, when read in conjunction with the hurst crossover and targets simply provides timing to a turn in direction that we are already expecting thanks to hurst and generally if price overshoots it won't be that far unless action is breaking out due to news and I avoid trading this way then).

I use the TMA band to show a higher timeframe picture for 5 and 11 as a guide (so H4 on H1 or W1 on D1) and although these current directions are only estimations that may well change based on current price action the estimation is accurate enough for me as a guide to likely longer term direction

Ok so my trade rules below:
**current timeframe 5 and 11TMA slope must be shifting in the same direction (i.e. OBV_TMATrueSlope previous closed bar is blue for both 5 and 11 for a buy or red for both 5 and 11 for a sell - I am not bothered with the actual slope numbers just the direction shown in the previous bar relative to two bars back on both)

If highertimeframe 5 and 11 do not slope in same direction then I will trade lower timeframe (only where above rule for current timeframe is satisfied) but these trades I watch carefully and would exit around 60% fib hurst extention and consider these trades a cheeky bonus.

If both the 5 and 11 on higher timeframe are approximately level (ranging) then I will trade both ways on lower timeframe (only when above rule for current timeframe is satisfied) and again exit around 60% fib hurst extention.

If both the 5 and 11 on highertimeframe are sloping roughly in the same direction then I don't trade against this on the lower timeframe (even if lower timeframe 5 and 11 do agree).
Instead I eagerly await for the lower timeframe 5 and 11 to make their turn into this highertime direction and these are the happy days where I can hold for 160%fib of hurst extention or thereabouts with a close stop. Interestly these setups often correlate with a trend wavvy AND Trend arrow from HGI and as Bob says it's worth going large on these trades.

Overall I use the picture given by the 5 and 11 TMA's on current and higher timeframe as the framework to place trades and do my best to rely more on finding the L LL HL or H HH LH sequence to enter/exit as my trade triggerrs (around the fib hurst extention targets but often giving a better entry when I have the time) With HGI (plus hurst filter v15.08) on the chart I try and get there first myself for a correct entry. HGI Matrix reminds me quicky the opportunities I miss and wakes me up if I've got the direction wrong (or were indeed asleep!)

This is more than you asked for Cherry but I hope this helps.. if any further explanation is required do let me know.. happy to share all I can if this assists in any way ..

While I am at it Steve when you read this perhaps the above rules could be worked into an alternative EA in due course using 3 pending orders (placed at the countertrend hurst target fibs.. perhaps 60%, 99% 160% (1% allowing for spread)) - i.e. these extentions as entry levels instead of TP when price action is CT) . As soon as the hurst target indicator (where 5 is moving against 11) prints the crossover and targets on the chart I trust fairly easy for an EA to place pending order for entry which will be back into the highertimeframe trend. (and/or if a HGI trend arrow forms in the meantime just enter of this aswell/instead). Conservative TP would then be the new hurst target after next TMA crossover, sit out for a half cycle then back in again each time into the trend.

I will be trading this manually for January and will update how I get on if anyone is interested.

Steve PM me for more detailed trading rules if you have the time to create this EA in the meantime.. if not once manual trading proves itself I'll surely be coming to you

Hi TraderJoe Forex,

Very detailed and interesting approach, will follow your January trades. I have been using the Hurst's TMA centered histogram MTF and trade on H4 but follow D1 direction. Is this correct? Looking at one up TF?

Would you be so kind to post your inids and template?

Happy New Year and my best wishes for all, harvesting lots of pips through all 2015.

Pipstubborn