• NeoMan
• Jul 11,2008
• In: Follow Trend

Rads Reverse MTF HAS

This strategy was shared at Forex-TSD forum by Radatats. He built the system from others idea but he put his own unique method. The power of this system is Multi Time Frame (MTF) analysis from several indicators including Heiken Ashi Smoothed, T3 MA, and T3 Stochastic. Radatats loves to use GANN variable as value of the T3 indicators. It is usually value from number 9.

The main idea of this is trend following system. So, what we are looking for here is to find reversal and then open / add position following the trend. We start from lower Time Frame and check the signal at higher TF. This is a MTF system and you can see on the chart what is going on on the other time frames. Every time frame will show you the current and the next three higher time frames for reference.

The indicators on the chart are:

Blue Line - the main indicator. It is a 27 period T3 moving average. Radatats explain that T3 differs but it is much smoother that a regular moving average. As a fan of W. D. Gann, Radatats likes his use of the number 9 in his various strategies and he incorporates it wherever possible. Thus the 27 (9 X 3).

Orange Line - 27 T3 on next higher time frame.

Red Line - 27 T3 on next higher time frame.

Purple Line - 27 T3 on next higher time frame.

Maroon Line - 729 EMA. This again is a multiple of 9 (9 X 9). Comparable to the 800 that some others like to use. Radatats finds it to be a sort of equilibrium point. Price invariably tends to return to that level. When you see price stalling, check the various time frames and usually you will find that it is the 729EMA on one of them.

Grey line - 2 period smoothed EMA. Represents price action.

HAS and HAS Extension - This gives the main visual indication of the move. He added the extension to help identify false breaks.

Center Window - MTF HAS Bars. These bars show the HAS indicator on the current and next 3 higher time frames.

Bottom Window - T3 Stochastic. Again, somewhat smoother than a regular stochastic. Set to 21-5-3 seems to line up very well with the other indicators.

Reversals are identified by a cross of the T3 accompanied by a color change on the HAS and a matching cross on the stochastics. In order to filter out false trades, look at the Center Window and wait for the first matching color change on the next higher time frame for the entry. When you see all trend lines converge, wait for the breakout indication to take the trade. You will often see all four bars in the center window change color at the same time just as stochastic crosses and a T3 line is crossed. That is a great entry point.

During the move watch for small corrections indicated by a change in color on the HAS but not the extension and on the current MTF Bar. Watch for stochastic to peak and cross back in the original trend direction and for the MTF Bar to resume its original color. This is often a good point to add to your position.

Exits are up to you. Radatats uses a combination of Murray Math lines and fib retracements to look for price to stall. Failure to penetrate a higher time frame T3 line or the 729 can also be a good signal to take your profits.

The template is setup to show the correct lines on every time frame so if you are on the 5 min, you will see the 5, 15, 30, and 60 T3 lines. If you are on the 30 min you will see the 30 min, the 60min, the 4hr and the daily T3, and so forth.

The trade system is the same on every time frame but obviously you need to adjust your trade size and stops accordingly. It also works on every pair he has looked.

Conclusion

Buy Condition

• Blue Line cross up Orange / Red / Purple Line
• Color change on the HAS from Red to Green on the current MTF Bar
• Stochastic Signal is above Stochastic Main and heading north ( cross is below 50, better if below 20)

Sell Condition

• Blue Line cross down Orange / Red / Purple Line
• Color change on the HAS from Green to Red on the current MTF Bar
• Stochastic Signal is below Stochastic Main and heading south ( cross is above 50, better if above 80)

Download Rads Reverse MTF HAS Template & Indicators
( right click and “save file as” )