Happs Trading System

Happs combines price levels derived from the Historical High, and Low of a given pair, with phase levels derived from Fib ratios.

Happs is different from any other phase type system in the sense that it requires no new adjustments from the month to month. Its levels are static, unless a new historical high or low has been made in a pair. In this case, it would need to be recalculated.

Attached Images (click to enlarge)

Happs also combines concepts of Supply and Demand with S/R pivot trading into one system. I believe both of these concepts need to be understood and taken into consideration in order to make consistently effective trades.

There is a little bit of a learning curve here, but its not rocket science.

The complete explanation of the system, including its process of development, is provided in the text document below.

This is a newly developed system-but I hope people will find it interesting, useful, and helpful. If it makes sense to you, and it works in demo-then great! But always demo trade first!

To make your own templates for different pairs follow this process:

1) Place Happs V8 indicator on your chart.

2) If you want to use different values for the Hist. high and low than appear in your Monthly data, you must input them manually.

Otherwise your monthly high and low will automatically be used by default.

3) Choose if you want secondary zones and fibs to appear.

4) If you want to increase the number of Happs levels, then increase the "Factor" setting to 64 or 128. If you want bigger levels

for viewing on Larger TF's such as weekly, monthly, and possibly Daily, then lower the "Factor" setting to 16 or 8.

5) In Properties, change the chart background to either Dark Kahki or Steel Blue for best visibility. Then turn off the grid.

6) Readjust the colors of your Happs lines and levels in the V8 indicator to optimize viewing.

7) Save as template. You're done.

(Make sure you are running MT4 build 500 or higher)

Summary of Trade-ability/Usefulness:

Happs was originally designed to be an open-ended system which could be used in numerous ways to find trades. It still is meant to be that.

With that said, I can also admit that when the system was first designed, I really didn't have the best idea how to use it most effectively in trading. I just knew that I was onto something that was pretty good, and potentially very useful.

So now after three years of practice and development I can give some better advice on how to use it most effectively in trading, or at least share what has worked best for me.

The most typical kind of trade I take with the Happs system includes confluences of technical elements with the Primary Zones. As in, a Primary Zone + a Trendline + Divergence on the Stochastics. These types of trades are easy to identify and have worked out well for me.

Follow the link below for a very typical example. This is a trade that I took on GU yesterday. Hidden bearish divergence was confirmed on the H4, then price retraced into a confluence of a Primary Zone and downward sloping Trendline.

http://www.forexfactory.com/showthre...65#post6713765

I consider the Mids and the Secondary Zones to be generally weaker areas than the Primary zones. So in order to trade out of these areas I usually want to see a little better technical setup than I would need to see if the confluence was occurring in a Primary. This is how the different technical areas of Happs color my thinking when considering trade opportunities.

Troubleshooting:

If you're putting the Happs_Phases_Add indicator on your chart and you know that the values it is giving for the high and low of the pair are wrong, then chances are that you don't have good data loaded into your platform. This will happen especially if you are just downloading a new platform for the first time, usually demo.

So what you must do is:

1) go to Tools>History Center>Currency Pair>Monthly TF, in your MT4 platform.

2) Then highlight Monthly TF, then click download.

3) It will give you a little pop up blurb, so click OK.

4) Then the new data will take about 4 or 5 minutes to download. That should correct any problems.

**Happs V8 requires MT4 build 500 or higher to operate.

Always happy to answer questions. Thanks, enjoy.

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Important How and Why it Works Posts:

http://www.forexfactory.com/showthre...79#post4882879

http://www.forexfactory.com/showthre...47#post4886947

http://www.forexfactory.com/showthre...10#post4887210

Good Charting Examples:

http://www.forexfactory.com/showthre...85#post4892985

http://www.forexfactory.com/showthre...04#post4960904

http://www.forexfactory.com/showthre...19#post4893519

http://www.forexfactory.com/showthre...99#post4904299

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Updates:

10/09/10:

Due to differences in the hist. opening price of various brokers, to make things more objective, and to keep everyone on the same page with their values, instead of using the historical opening for the middle value, we're simply using the average between the high and the low price. The basic harmonics at work come through just as well this way, and it elimates a great deal of confusion and problems.

Pat has created a great Indicator for this system, which is still a bit of a work in progress, but its working fine. Just place it on any pair, input the high, low, and average of the high and low, where you see the "Open" value on the indicator. I'm inlcuding the indicator below, as well as the preset templates for the EU and the GU.

Thanks very much to Pat for the great work!

8/30/11

FerruFx has contributed a great add on to the Happs V4 indicator. It does the following:

1) It extends the SD zones (colored rectangles) completely across the screen so you don't have to flip back and forth between time

frames to get the rectangles to update themselves. It also just looks better having them go completely across.

2) It gives you an option to display the high and low price of any pair that you apply it to. This way if you want to make your own templates, you don't have to go through the hassle of tracking down the historical high and low for the pair.

These are both great conveniences and exactly what the indicator needed. So a big round of applause to Ferru for his great job!

I've included the indicator below. "Happs_Phases_Add" Just put it on your chart in addition to the regular Happs Indicator.

Also, I've updated the EU template to include the Happs_Phases_Add Indicator.

6/15/2012

Introduced the concept of secondary S/D zones and provided a few templates to illustrate the idea.

See this post: http://www.forexfactory.com/showthre...66#post5765766

5/20/2013

The Happs Indicator has been updated to its final version V8.

Thanks to Pat1 for an amazing job in producing a very robust version of the Happs system in a trading indicator.

Changes Made:

1) Automatic Search of Historical High and Low based on your monthly chart data. No need to manually input the high and low any longer.

2) Capacity to manually override the automatic values with values of your choosing.

3) Secondary Zones will appear if you choose this option.

4) Factor Setting: This controls how many levels deep you want the Happs system to go between the high and low prices.

a) 32 is the default standard Happs chart. Leaving "Factor" at its default of 32 will produce a regular Happs chart.

b) Setting it to 64 will produce 2x as many 50% levels, thus making the levels half the size as the default. Setting it to

128 will give you 1/4size levels, or micro-Happs. Some traders like to use this setting for scalping on the 5 min chart.

c) going lower than the default to 16 or 8 will make the levels larger, for viewing on the weekly TF, for example.

5) Total control over the color of all lines and levels on the chart, for optimized custom viewing.

6) Rectangles now stretch all the way across your chart without the need for an additional indicator.

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