TraderDesk HA Swing Strategy

[Wavegarrick]

Hi Traderdesk. This system works excellently with 10.6 Edsel. It also gives me better timing of the trade with the break of the heiken Ashi and pull back for an entry.

Thanks and keep it up.

[TraderDesk]

Hi Traderdesk. This system works excellently with 10.6 Edsel. It also gives me better timing of the trade with the break of the heiken Ashi and pull back for an entry.

Thanks and keep it up.

Hi Wavegarrick,

Glad to hear that. I had in the past put the two together and noticed that they complemented each other as they are looking for the same trends....

I do not use 10.6 as I trade very few currencies and I am trained to use just price action visually but 10.6 is a great setup for trading.

What I do use is the CSS 4h/daily charts since it gives me a visual representation of a basket of currencies in one glance. CSS is a good tool to have.

[TraderDesk]

Good morning,

Last night I took closed my positions to take profit off of the table. Normally I would have taken a percentage off and left the rest but for today I will wait to see if I can get in at a better R/R.

As you can see on the 4 hour chart price action is bullish and as long as each bar closes above 172 then I will stay with open positions. The 1 hour chart is a very good place to look when the 4 hour chart is bullish but you sense a CT(counter-trend) is coming very soon. If price action crosses below the HA on the 1 hour chart the probability of a CT spikes dramatically. If I was to open a CT it would be off of the 1 hour chart and not the 30 minute chart.

HA4hour.png

I don't know if I said this yet but the lower (TF)time-frames will get you into a position or swing quicker but the probability of erroneous signals increases rapidly as you use each smaller TF charts so be careful and think of your MM(money management) policies.

4 hour chart clearly shows a bull trend bias but the lack of strong follow-through can mean the currency pair is waiting for some news/reaction in the near future...

30 minute chart shows price action intraday is bullish as well so two waves 240 and 30 minute are bullish. Probability is high today of another bullish push so the news for GBP might be the catalyst.

HA30minute.png

An example of a trade for today is to open a position now say 172.40 with a tight SL at 171.90 with a first target of 173.40... R/R 1:2 You can even have a tighter SL but I would be careful of spikes beside it all depends on your risk management policies

[tommiho]

Hi TD, quick question, how do you go about trading news? Do you stick to your rules all the time, for instance today NFP, price was going up and down.
So overall, to follow 1h and 30 min since 4h long, D1 long, it would be countertrend.
Maybe it would be better not to trade at all today?
Thanks very much and have a good weekend.
{all charts GBPJPY}

Tomas

[TraderDesk]

GBP/JPY charts

Hi Tomas,

News like today is not easy to trade unless you trade on the daily and higher time-frames. I would look to stay out until after the news most of the time wait about 1 hour and then look to trade in the 1 hour HA direction.

Take today, the 1 hour HA was broken to the downside around 4 hours before NFP was release so that tells me the market is setting itself up for a fall but I won't trade on it until after the news event. Or I could stay out of the news event and just wait until the next trading to resume trading once the effect of the news event has been muted.

HA1hour.png

You can see that after the news event price retraces to the 15 minute HA line and reverses back down never crossing it. For me this is a good bearish signal to sell.

HA15minute.png

When 4 hour HA breaks and at least one bar closes(Color turns) I will start trading in that direction off of the 30 minute or hourly. Counter trend for me is when the H4 and 30 minute HA are opposite colors. The Daily HA is to tell me when the 4 hour and Daily HA turn the same color increase my market exposure...

If you are just starting out trading I would stay away from news trading until after the market determines the direction it will go so you will avoid spikes and drawdowns....

[tommiho]

Hi TD, just have a question for you on the picture attached.The chart is 30min.
The uppercharts were 1h mostly blue, 4h blue, 1d blue.
Mostly I am curious about the bars encrouching the HA line and not changing the colour.
Thanks in advance.
regards
T.

[TraderDesk]

Hi TD, just have a question for you on the picture attached.The chart is 30min.
The uppercharts were 1h mostly blue, 4h blue, 1d blue.
Mostly I am curious about the bars encrouching the HA line and not changing the colour.
Thanks in advance.
regards
T.

Now in your case with the 30 minute chart I would most likely place a buy even if the price went below the HA line as long if it did not go below the hourly chart. Taking your SL as an example I would have a great R/R if price goes back up so it is a good trade since 1, 4 and D1 charts the HA is BLUE....

Remember each currency pair has it's own feel so if it was GBPJPY the above scenario is how I would react...

[milanese]

I attach here an HASmoothedIndicator, with higherTF check, it will only give an alarm if the higherTF is in the right direction.
The idea is based on a request that Aussiedoc made today.

With HAHigherTf you will set the highertf used

HA_SmoothedWithHigherTF.mq4

Cheers

Tommaso

[dentiok]

As a way to provide a quick access to what is happening in high TF, it helps some HAS histogram. Again, just as a quick way, however confirm the PA directly performing top down analysis as does TD is fundamental.
It would be extremely cool if we have an HAS histogram not only for high TF´s but also lower TF´s. milanese what do you think?
TH and milanese thanks for your efforts, I like the simplicity and power of the strategy.

[milanese]

.....
It would be extremely cool if we have an HAS histogram not only for high TF´s but also lower TF´s. milanese what do you think?
TH and milanese thanks for your efforts, I like the simplicity and power of the strategy.

Hi ,

I think you can easy solve this in attaching the attached HA Histogram Indy coded by kino and setting it for the lower timeframe you wish..

Heiken_Ashi_Smoothed_histo_kino.mq4

Cheers

Tommaso