HAMA PAD - A Simple Trading Approach
edited July 28, 2007
last edited April 5, 2009
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NOTE: Myself and other members of the HAMA Traders Lounge will be more than happy to help you out in your desire to experience the HAMA adventure. In order to save you and us some time, PLEASE read the relevant posts here regarding the HAMA PAD v1, the H2 Trading System, and the Z3 Convergence System. Most of your questions, issues and concerns may have likely been answered in some posts already. You can browse/skip some our fun stuff postings.
The Heiken Ashi Moving Average (HAMA) modified is not my oriignal custom indicators. Like some of the indicators used herein, these are available for FREE elsewhere in this thread and forum or on the net. For you information, we have the following access for the use of my trading approach and systems:
- HAMA PAD v1 is available here for FREE. You can download the 3 in 1 indicators, the HAMA System [combined and coded by keekkenen] from post# 1978 on page 198 of this thread. I strongly recommend that you read through the posts pertinent to the use of HAMA PAD v1.
- H2 Trading System as good as it is, has been discontinued, and replaced with Z3.
- Z3 Convergence System is only available to invited and qualified members of the HAMA Traders Lounge - Z3 FREEDOM SYSTEM.
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I have started this thread as a result of the many requests I received, from my postings on different threads here, for information on the
HAMA PAD. So, here is the beginning of our
HAMA adventure..
Let me first start this by giving you a little background on why this method or approach in my trading plan. It is based on
Heiken Ashi (HA) modified using
moving average (MA), hence, the coined word
HAMA. With it, we add the
HAMA Bars, to see the real time
Price actions in a given
Area of the chart to eventually indicate to us the
Direction of the current market trend, thus the coined word
PAD. I tend to use coined words, initialed letters, etc., coz I used to deal with the government and you know all those 3 or 4 lettered agency names, i.e.
SEC, DOJ, FBI, etc.. If you are not familiar with HA
(see image #1) please refer to link #1 and #2.
When I started to get into trading, I have found it very hard to comprehend all those terminologies and indicators, and I still do. I thought that Fibonacci was some kind of an Italian cocktail, dance, or pasta. Then, of course, the Japanese entries into the trading indicators, the
Japanese Candlesticks (yeah, just tell me when it’s doji time), the most commonly used, the
Ichimoku [
(it was like trading in cloud 9 and I thought Tenkan Sen was a Japanese food), the
Renko, and the
Kagi. My favorite of them all is the
Heiken Ashi. When I first heard of it, I thought it was a new German-Japanese beer joint venture,
Heineken and
Asahi beers in one ice-cold bottle. Make it a case, I like them cervezas. I hope I got some smiles
from you guys. Kidding aside, all these indicators are good. I just tend to favor the
HAMA.
HA, as it is, already serves as a good tool for reducing the so-called market noise. Read more on it in
link #3 below. But when
raff1410 brought up the HA with the MA modification, it gives it a new look at market direction and market noise reduction. Lo and behold, the HAMA
(see image #2) was born, I mean coined. Then,
FX Sniper threw in the EMA channel
(see image #3). WOW! Now, I saw the light at the end of the tunnel. There is the
Price action, tradeable
Area and
Direction are easily identified
(see image #4).
OK, so it may sound like I am very excited about this, YES, I am. Because, this I can easily understand. I am able to trade without any other confirming indicator/s. But, typical of us all, I am sure many of you, including me, will be tempted to add one or more confirming indicators. I use this basic
HAMA PAD setup whether I will be doing
trend trade, counter trend, breakout, or scalp.
From this HAMA PAD simple trading approach, evolves the H2 Trading System and others. We now have the HAMA Traders Lounge and Trading Room. I am also planning to start a real time learning - sharing - collaborating - community center for HAMA PAD Users Group and other members of the TSD forum who are using the Heiken Ashi.
I feel that this approach will work best for beginners and experienced traders alike. The 10 to 20 pips plus a day per pair goal can become comfortably attainable with minimal risk and good money management.
I would appreciate your comments, ideas, and enhancements on this. Good ones, preferred of course.
Let’s make this a profitable adventure.
Enjoy!
fxcruiser
shoo
Update 8/26/06
HAMA PAD Basic Trading Guidelines posted here: http://www.forex-tsd.com/45164-post22.html
Some sample FX Trading Results:
082906 - US Morning Session: http://www.forex-tsd.com/45827-post109.html
083106 - http://www.forex-tsd.com/46433-post150.html
091506 - http://www.forex-tsd.com/49398-post167.html
092206 - http://www.forex-tsd.com/50499-post193.html
100606 - http://www.forex-tsd.com/53775-post255.html
103106 - http://www.forex-tsd.com/59503-post614.html
More trade results from different users can be found within this thread.
Some sample Futures Trading Results:
092206 - http://www.forex-tsd.com/50506-post194.html
Links:
1.
Heikin-Ashi: A Better Candlestick
2.
Heikin-Ashi Technique
3.
Trading Without Noise