Smoothing out price

[feb2865 10]

Hello

 

It has been something I wanted for so long. I don't like noise at all in my trading, but you must live with it. This is just a very subjective way I have to look at the markets.

 

 

Note: For those who need shadows as a price reference, my apologies as this practically eliminate shadows. I do believe that hammers are powerful

I am on this 14 days tryout with sierra charts and I found something very interesting. First here's the mix

 

1) Heikin-Ashi Bars

2) Hull Moving Average - 8-periods

3) Time frame I am using just for illustration purposes - five minutes

 

I am setting the bars as a main price graph, You can't see the Hull moving average as is calculated as a main price graph, running along with Hekin-Ashi bars.

 

At the beginning seems to me as renko bars, which I never get them to work. I decided to try the on real time today 7/23 and they move pretty much like regular candlesticks. It felt like a walk in the park....really smooth.

 

I loaded two charts one was the fed day(traditionally choppy) and the other was Friday 7/20 with a nice selloff. Even on the fed day, there's some recognizable swings.

 

Any input will be appreciated

 

Thanks in advance

[walterw 10]

Nice Charts Raul... did you try how the 144 tick would look with that heikin ashi ? would like to see some of that... by the way I am trying on 110 Tick since your input and its much more robust... thanks Walter.

[feb2865 10]

Here's using 144 tick charts

 

look how smooth the price is

 

 

look at the pullbacks

 

sweet! and all in real time

[walterw 10]

Raul : when you are reffering to "real time" would that be the fact that once a bar gets closed it wil not repaint in the future ? so what you see is what you get ? It just looks too good, you could perfectly time your trades with the color change and vuala ¡¡ cheers Walter.

[walterw 10]

You could actually time your entries on the second red bar after a pullback there.... just an idea.... cheers Walter.

[feb2865 10]

Walter

 

I still trying to digest this new stuff. I traded to day with just a couple of contracts, only using the bar repaint as an indicator and it worked like a charm.

 

Actually I sold YM @13913 and I got out with a minor scratch as the bars repainted to the other side (bullish) I closed my position and went long @13921 with the idea of capturing 20 ym points. If you notice what I really did was to buy on the pullback as the market sold off today. It reached my target and actually went up to 13957 area before reversing. That would be a cool 36 points if I stayed on the trade before the bars re-painted again.

 

I even could got away with a tight stop on the reversal. Stop - 13957 Entry 13946 and I would get the whole sell-off......just looking at the bars

 

At this point sincerely I don't know what to think.

[walterw 10]

Walter

 

I still trying to digest this new stuff. I traded to day with just a couple of contracts, only using the bar repaint as an indicator and it worked like a charm.

 

Actually I sold YM @13913 and I got out with a minor scratch as the bars repainted to the other side (bullish) I closed my position and went long @13921 with the idea of capturing 20 ym points. If you notice what I really did was to buy on the pullback as the market sold off today. It reached my target and actually went up to 13957 area before reversing. That would be a cool 36 points if I stayed on the trade before the bars re-painted again.

 

I even could got away with a tight stop on the reversal. Stop - 13957 Entry 13946 and I would get the whole sell-off......just looking at the bars

 

At this point sincerely I don't know what to think.

 

 

Ok Raul let me get this clear... re-paint or change color...

 

once the bar closes does it stays on that color and never changes again color ?

 

A healthy paint bar is this : it may change color while the bar is still working, once it is closed, the color should not change any more for that "past/ closed" bar....

 

A Tricky paint bar wil "re-paint" that means that even thought that bar already has closed, maybe some time in the future it will be plotted on a diferent color... in that case historical information on chart its not reliable...

 

So again my question : does it re-paint ( tricky) or does it stay the color for good (reliable) ? cheers Walter.

[feb2865 10]

Ok Raul let me get this clear... re-paint or change color...

 

once the bar closes does it stays on that color and never changes again color ?

 

A healthy paint bar is this : it may change color while the bar is still working, once it is closed, the color should not change any more for that "past/ closed" bar....

 

A Tricky paint bar wil "re-paint" that means that even thought that bar already has closed, maybe some time in the future it will be plotted on a diferent color... in that case historical information on chart its not reliable...

 

So again my question : does it re-paint ( tricky) or does it stay the color for good (reliable) ? cheers Walter.

 

Short answer - yes stay the color once the bar closes...doesn't change in the future

[feb2865 10]

Shorted today at 9:40 @13860 just a couple of contracts

 

Exit @ 13814 as my DSL service acted up big time

 

Anyway it was a 46 points move.

 

I am an old dog and somehow I feel skeptical. Need to find the reasoning behind this

[walterw 10]

Short answer - yes stay the color once the bar closes...doesn't change in the future

 

 

Thats Good ¡¡

[walterw 10]

Shorted today at 9:40 @13860 just a couple of contracts

 

Exit @ 13814 as my DSL service acted up big time

 

Anyway it was a 46 points move.

 

I am an old dog and somehow I feel skeptical. Need to find the reasoning behind this

 

 

Another question Raul here... the actual plot, obviouly its not the traded price so : how much lag are you having with the real price ?... is it posible to plot the raw bars and this HA bars together so you can compare real price vs this cool HA bars ? I am as skeptical as you are and also very surprised with so nice plotting... I am familiar with HA but not this particular "leading/smooth" HA... cheers Walter.

[feb2865 10]

Another question Raul here... the actual plot, obviouly its not the traded price so : how much lag are you having with the real price ?... is it posible to plot the raw bars and this HA bars together so you can compare real price vs this cool HA bars ? I am as skeptical as you are and also very surprised with so nice plotting... I am familiar with HA but not this particular "leading/smooth" HA... cheers Walter.

 

Actually bars do move with price, at least on sierra. As I notice they don't match the price at the axis. I use the bars pretty much as an indicator and I wait for the next period to break the higher high/lower low for an entry, if the bars change colors. I personally pay more attention on price. You're going to have the normal ebb and flow at the bar but the cool thing is that the bar don't change color unless they turn back the other way.

 

I also use transact AT. It has a nice DOM This is where actually look at the price but you can check the price as it move thru the axis and they correlate nicely.

[walterw 10]

Actually bars do move with price, at least on sierra. As I notice they don't match the price at the axis. I use the bars pretty much as an indicator and I wait for the next period to break the higher high/lower low for an entry, if the bars change colors. I personally pay more attention on price. You're going to have the normal ebb and flow at the bar but the cool thing is that the bar don't change color unless they turn back the other way.

 

I also use transact AT. It has a nice DOM This is where actually look at the price but you can check the price as it move thru the axis and they correlate nicely.

 

Ok... I did look at your chart and compare to my raw bars charts from my dom and yes its quite very well correlated... What really happens here is that noise its been absorbed and at the same time there is not excesive lag going on... so you can actually position yourself on the clean swings of price action... Could you post a chart explaining this entry timing you are talking about ? see if I am interpreting you correct...

 

I am thinking on testing Sierra... do you know if the 30 day trial of transact could be good in order to have data for the 14 day trial of sierra ? thanks so much, I am very glad to be able to interact with you, cheers Walter.

[feb2865 10]

Ok... I did look at your chart and compare to my raw bars charts from my dom and yes its quite very well correlated... What really happens here is that noise its been absorbed and at the same time there is not excesive lag going on... so you can actually position yourself on the clean swings of price action... Could you post a chart explaining this entry timing you are talking about ? see if I am interpreting you correct...

 

I am thinking on testing Sierra... do you know if the 30 day trial of transact could be good in order to have data for the 14 day trial of sierra ? thanks so much, I am very glad to be able to interact with you, cheers Walter.

 

Yes you can combine both. Actually, transact AT has a button where you can launch sierra in a heartbeat. I've been using transact for years and had no problems whatsoever. Their execution is excellent.

 

My entry was at 9:40 AM I still respect pivot points and S/R Levels. As yo can see, market bounced off from pivot at 9:35 AM. I always time my entries at the next bar whenever I see enough momentum if it breaks the higher/high lower/low. I am using this system pretty much the same as you can see price action is very similar to any regular candlesticks with the exception of the axis. The trade was a risky one as we had existing home sales @ 10:00 am Lucky for me the report came out bellow consensus so it pushed the market even lower. Anyway I am trading with just a couple of contracts so it's not a big deal.

 

As long as you have the bars colored at the side of your trade - no problem. Let it go. You can opt to get out at the close of a bar in reversal or wait for a second bar to confirm either a reversal or pullback

 

Entry was 13860 exit 13814. My DSL service got hanged during the trade so I had no choice but to call my broker

 

 

 

Here's the chart

[walterw 10]

Raul : I just did setup for a trial of sierra charts, is it posible to share your chart template here ? you can zip it so it can be uploaded here on TL...

[feb2865 10]

Here you go

 

 

My pleasure

Raul YM.zip

[walterw 10]

Thanks Raul ¡¡ would this be a template or layout from sierracharts ?

[feb2865 10]

Thanks Raul ¡¡ would this be a template or layout from sierracharts ?

 

Template

 

I shorted YM @ 13852 (15:15 EST) and I got out at 13832 for a cool 20 points using this system.

 

Let's see what happens

[walterw 10]

Yes you can combine both. Actually, transact AT has a button where you can launch sierra in a heartbeat. I've been using transact for years and had no problems whatsoever. Their execution is excellent.

 

My entry was at 9:40 AM I still respect pivot points and S/R Levels. As yo can see, market bounced off from pivot at 9:35 AM. I always time my entries at the next bar whenever I see enough momentum if it breaks the higher/high lower/low. I am using this system pretty much the same as you can see price action is very similar to any regular candlesticks with the exception of the axis. The trade was a risky one as we had existing home sales @ 10:00 am Lucky for me the report came out bellow consensus so it pushed the market even lower. Anyway I am trading with just a couple of contracts so it's not a big deal.

 

As long as you have the bars colored at the side of your trade - no problem. Let it go. You can opt to get out at the close of a bar in reversal or wait for a second bar to confirm either a reversal or pullback

 

Entry was 13860 exit 13814. My DSL service got hanged during the trade so I had no choice but to call my broker

 

 

 

Here's the chart

 

 

Raul : was this morning chart a 144T chart ? thanks Walter.

[walterw 10]

OK Raul you are a genius ¡¡ great finding with this indicators and setup parameters ¡¡ also so greatfull for sharing here at TL with us...

 

I am running Sierra Charts with opentick data... playing arround with this chart setup, and its really incredible the fenomena of combing this HA and Hull with this parameters... I had been coding on tradestation for years and never got anything similar... I am just impressed...

 

 

My inputs so far till now : there is some lag BUT its not a great lag... the structure of price action is clearly there and "timing" (the hardest job for any trader) can be done so easy, taking of the stress that noise causes and keeping you inside of moves that can make you clean profits...

 

Obviously this is no perfection nor holly grail, but that it can make your life more easier I believe yes...

 

I attach a chart of what I personally playing arround came up, also added some indicators from sierra that I am experimenting at this time... thanks again for this great contribution ¡¡ cheers Walter.

[walterw 10]

Here I attach a horizontal comparisson of the HA chart and the raw bars chart... its clear the good correlation you mentioned today..

 

I plotted some trendlines on both showing the main swings...you can notice the noise clearly been defeated and at the same time the swings are there ready to be traded... I am just delighted... cheers Walter.

[traderlu 10]

Hey guys, nice charts!

 

I would be very interested to know how these charts are computed/calculated. How exactly does the HMA factor into bar creation? Is the range overlayed on top of the HMA? The bars don't really look like range bars, since each bar seems to overlap.

 

I guess I would just like a bit of insight into how the bars are plotted. Anything you could provide would be greatly appreciated. Thanks!

 

-Luis

[walterw 10]

Hey guys, nice charts!

 

I would be very interested to know how these charts are computed/calculated. How exactly does the HMA factor into bar creation? Is the range overlayed on top of the HMA? The bars don't really look like range bars, since each bar seems to overlap.

 

I guess I would just like a bit of insight into how the bars are plotted. Anything you could provide would be greatly appreciated. Thanks!

 

-Luis

 

 

Hi traderlu... I had a little dissapointment on real time as they eventually lag quite a bit... so for timing purposes I think it doesnt get better to what I am used to use... now for an overall trend determination it is a very nice tool.. it shows the price action structure very clean... cheers Walter.

[traderlu 10]

Hi traderlu... I had a little dissapointment on real time as they eventually lag quite a bit... so for timing purposes I think it doesnt get better to what I am used to use... now for an overall trend determination it is a very nice tool.. it shows the price action structure very clean... cheers Walter.

 

I see. So you would lean more towards using it as a trend indicator, such as noting if its making higher peaks and valleys, instead of trying to catch the color changing swings. Also, would I be correct in suspecting that in a fairly choppy market, you be buying near the highs and selling near the lows if you were to take the Heiken-Ashi signals (change of color)?

[walterw 10]

Well it is a complete allien territory for me... I just tried it out on friday... so dont have much input on how tu use it, maybe Raul could expand a little more on it... cheers Walter.