Earl's

Bodacious
HAMA
Indicator
Thank you for purchasing a lifetime license to my configurable HAMA indicator.

Installation
After purchase, you should have been directed to download the indicator. For installation, you'll need to
remember the folder you put it in. If you haven't downloaded the indicator, go here:
https://drive.google.com/uc?id=1knjP6QYM_f8Z4mUeX44AmDSyEhg2Oqar&export=download

In the NinjaTrader 8 Control Center main menu, select Tools→Import→NinjaScript Add-on...

Licensing
Before we get to Configuration and Use, you need to be sure you're properly licensed. When you
purchased the indicator, there was a field in which you were asked to put your Machine ID. If you did
this properly, you're good to go. But if you still need to provide your Machine ID, you can obtain it
from the NinjaTrader 8 Control Center. Just go to the menu selection Help→About to get your
Machine ID.
Highlight and copy the field indicated in the white rectangle in the image above, then paste it into an
email, and send it to licensing@daytradingearl.com. Be sure to send it from the same email
account under which you purchased the indicator so we can properly assign the lifetime license.

If you didn't provide your Machine ID when you purchased the indicator, don't worry. You can still
use the indicator right away. But you have only a few days to provide your Machine ID before your
indicator will stop working, so be sure to email your Machine ID to us as soon as possible so you can
use the indicator without interruption.

Configuration
After installation, it should be ready to use. In any chart, click on the Indicator selector icon, as
indicated by the yellow arrow in the image below.

Select EarlsBodaciousHAMA and add it to the chart. Your configuration parameters will look like
this (on next page):
The configuration shown is not the default, but is an example of what can be used.
Parameter Settings
• RSIFilter – Selecting this checkbox will filter all the price data through an RSI calculation
with a period of your choosing. The primary value of doing this is to more easily detect
divergence. Selecting this option will apply the RSI Filter to all price elements (Open, High,
Low, Close).
• RSIPeriod – This is the period of your RSI Filter application.
• OpenPeriod – This is the period of the averaging applied to your Open price element. For
example, if you select a period of 12 and select the SMA option, the Open price element will
have a Simple Moving Average applied to it with a period of 12 bars.
• OpenEMA – Checking this box applies EMA smoothing (Exponential Moving Average) to the
Open price element. If more than one smoothing function is selected, then selected functions are
applied, then averaged for the final result.
• OpenHMA – Checking this box applies HMA smoothing (Hull Moving Average) to the Open
price element. If more than one smoothing function is selected, then selected functions are
applied, then averaged for the final result.
• OpenSMA – Checking this box applies SMA smoothing (Simple Moving Average) to the
Open price element. If more than one smoothing function is selected, then selected functions are
applied, then averaged for the final result.
• OpenWMA – Checking this box applies WMA smoothing (Weighted Moving Average) to the
Open price element. If more than one smoothing function is selected, then selected functions are
applied, then averaged for the final result.
• OpenLR – Checking this box applies LinReg smoothing (Linear Regression) to the Open
price element. If more than one smoothing function is selected, then selected functions are
applied, then averaged for the final result.
• Period and smoothing function selections are repeated for the High, Low, and Close price
elements.
Being able to select periods and smoothing functions independently between the four price elements
provides a flexibility that allows you to tune the indicator so it's less sensitive to events like false
breakouts and minor pullbacks, and more sensitive to events like true reversals and price gaps. It is
recommended that before you begin trading, you play with these configuration selections under
different market conditions (smooth, choppy, etc.) so you can get a feel for what to expect and how to
tune the indicator. With practice, you should be able to develop different templates for different market
conditions for your choice of market and timeframe. The configuration depicted in the above image is a
good place to start.

Panel Settings
The default Panel setting is for the indicator to be in its own panel, but it also works great on the price
panel as well. On the price panel is the typical way to use a HAMA indicator.
Indicator Use
Smoothing Price Action
As with all HAMA indicators, the primary use of this indicator is to smooth price action and to avoid
making panic-induced moves. To this end, it is probably best to have the indicator on the price panel.

Divergence Detection
What sets this indicator apart from other HAMA indicators is its ability to help you spot divergence.
Here's a snapshot of the NASDAQ market with the standard RSI indicator on a 1000-Tick chart:

Can you spot the bullish divergence? It's there, but with so much noise, it's easy to miss. Even worse,
it's easy to see things that aren't really there, making your trading decisions even more difficult and
fraught with danger.
But using the RSIFilter configuration checkbox on my HAMA indicator makes spotting divergences a
snap. By having two of my HAMA indicators in separate panels, identically configured except that one
has RSIFilter turned ON, and the other one has RSIFilter turned OFF, divergences can be spotted at
a glance. Here's the same price data, but with two of my HAMA indicators configured as described:

Please note that the blue lines showing divergence and yellow arrow showing subsequent price move
are not part of the indicator, but were applied manually in order to communicate usage. Also note that
the indicator with RSIFilter turned ON is on the bottom. Everything else is configured as depicted in
the Parameters configuration screen a few pages back, with periods of 13 and HMA selections on all
the price elements.
As you can see, sufficient noise is removed from the peaks and valleys, making even the RSI-filtered
indicator (on the bottom) silky smooth. You don't even need to look at the price chart to know when
divergence has happened. My HAMA indicators tell the whole story.

Happy Trading
If, for any reason, you decide within 14 days after purchase that my HAMA indicator is not for you,
you can get a refund by going to this link:
https://sales.daytradingearl.com/updateinfo/
If you want to keep up with news about updates, new indicators, and tips on how to use them, go to
this link:
https://daytradingearl.com/
I wish you tremendous success in your trading career, and I hope my indicator has made your life
better.
And remember: It's always better to make less than you coulda than to lose more than you shoulda.
Day-Trading Earl

http://ninjatrader.com/LP/VendorDemo/

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