HAMA Supreme Foreign currency trading technique

Trading indicators are simply tools that traders can use to make informed trading decisions. Decent indicators should allow traders to have a good idea of ​​where the general trend direction is. However, there are some indicators that only stand out from the rest. These indicators not only show traders the general trend direction, but do so with consistency and accuracy. These types of indicators allow traders to build a trading strategy with a high probability on them.

The HAMA indicator

HAMA stands for Heiken Ashi Moving Average. It is also popularly known as Heiken Ashi Smoothed.

The Heiken Ashi candles have become popular lately and for good reason. The Heiken Ashi candles clearly show the trend direction in the short term. This is done with great accuracy and works well as input signals.

However, the Heiken Ashi Smoothed or HAMA indicator is somewhat different from the normal Heiken Ashi candles. The Heiken Ashi candles would clearly show the ups and downs of a candle, but only change colors when the short-term trend has changed.

However, the Heiken Ashi Smoothed Indicator is not necessarily a candle holder. In fact, it looks more like a moving average. This is because the Heiken Ashi Smoothed indicator is based on moving averages, more precisely the exponential moving average. The difference is that the trend changes are better smoothed and the direction of the trend is shown based on the color of the candles.

If you look at a chart with a Heiken Ashi Smoothed or HAMA indicator, you will see how clearly the trend is defined and how closely it compares to most indicators.

Forex Profit Supreme Filters

The Forex Profit Supreme Filter is another custom indicator that shows the direction of the trend. To do this, bars are painted in a separate window. In this setup, the indicator paints green bars for bullish trends and red bars for bearish trends.

This indicator is another trend indicator with a high probability. If you were to look at it as a standalone indicator, you would see how well it appears to be following trend direction. Whenever it's green, the market appears to be bullish. Whenever it's red, the market appears to be trending down.

Trading strategy concept

The HAMA Supreme Forex Trading Strategy is based on the confluence of these two trading indicators with high probability. These indicators are complementary indicators that show the trend direction fairly accurately.

Individually, they are well suited as independent indicators. However, when these indicators are used together, they work like a charm.

The key to this strategy is to swap signals from both indicators that are conflicting and that have changed color to indicate a reversal at the same time.

Indicators:

  • HAMA_
  • Forex Profits Supreme Filter

Time window: 1-hour, 4-hour, and daily charts

Currency pairs: Major and minor pairs

Trading session: Meetings in Tokyo, London and New York

Buy (Long) Trade Setup

entry

  • The HAMA indicator should change to blue, indicating a possible bullish trend reversal
  • The Forex Profit Supreme Filter should change to green, indicating a possible bullish trend reversal
  • These trend changes should be somewhat aligned
  • Place an order to buy at the confluence of the above conditions

Stop loss

  • Place the stop loss under the HAMA indicator

output

  • Once the HAMA indicator turns red, close the trade, indicating a possible bearish reversal
  • Once the Forex Profit Supreme filter turns red, close the trade, indicating a possible bearish reversal

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Sell ​​(Short) Trade Setup

entry

  • The HAMA indicator should turn red, indicating a possible bearish trend reversal
  • The Forex Profit Supreme Filter should turn red, indicating a possible bearish trend reversal
  • These trend changes should be somewhat aligned
  • Enter a sell order at the confluence of the above conditions

Stop loss

  • Set the stop loss above the HAMA display

output

  • Close the trade as soon as the HAMA indicator turns blue, indicating a possible bullish reversal
  • Close the trade as soon as the Forex Profit Supreme filter turns green, indicating a possible bullish reversal

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Conclusion

This strategy is a trend following strategy with a relatively higher probability compared to other trend following strategies.

Since the strategy uses the HAMA or Heiken Ashi Smoothed indicator, the likelihood of a successful trend reversal is better. This is because the HAMA indicator by itself is already a high probability indicator. I personally even know a trader who uses this indicator as an entry signal for his trading robot. This just shows how the HAMA is a profitable indicator on its own.

Add the confirmation of the Forex Profit Supreme Filter to this strategy to filter out trading setups that are less likely. We then have setups with an even higher probability.

However, this strategy would work better if the trader has an understanding of supports and resistances. Entries based on this strategy that conflict with a rebound from a support or a resistance usually work best.


Forex Trading Strategy Installation Instructions

The HAMA Supreme Forex Trading Strategy is a combination of Metatrader 4 (MT4) indicator (s) and template.

The essence of this forex strategy is to transform the accumulated history data and trading signals.

The HAMA Supreme Forex Trading Strategy offers the opportunity to recognize various peculiarities and patterns in price dynamics that are invisible to the naked eye.

Based on this information, traders can assume further price movements and adjust this strategy accordingly.

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Click here for the step by step XM Trading Account Opening Guide

How do I install the HAMA Supreme Forex Trading Strategy?

  • Download HAMA Supreme Forex Trading Strategy.zip
  • * Copy mq4 and ex4 files to your Metatrader directory / Experts / Indicators /
  • Copy the tpl file (template) into your Metatrader directory / templates /
  • Start or restart your Metatrader client
  • Select the chart and timeframe in which you want to test your forex strategy
  • Right click on your trading chart and hover over “Template”.
  • Move right to select the HAMA Supreme Forex Trading Strategy
  • You will see that the HAMA Supreme Forex Trading Strategy is available on your chart

* Note: Not all forex strategies come with mq4 / ex4 files. Some templates are already built into the MT4 indicators of the MetaTrader platform.

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