The final hamon you get is somewhat of a mystery, but the methods are not.
I have posted several hamon tutorials in the past, but here is a simple guide for a suguha hamon:
Start with a blade that has been through foundation shaping (sugata), and is ready for yaki-ire. Normalize the blade before HT. The condition of the steel before HT will greatly affect the final results.
While not everyone agrees, it seems that machine work can create stresses that show up in the final hamon results. Many smiths make the blade by whatever method they wish ( forging is the usual way), and then anneal or normalize the blade. After that they do all the shaping work with stones and files.
Make a simple stand/clamp that will hold the blade by the tang and allow you to work with both hands. The ability to rotate the blade and work both sides is important. A trip to Harbor Freight will yield some inexpensive clamps that rotate. Mount the clamp firmly so you can sit or stand by the blade and do the clay work.
If you are married, or have a good partner, Don't do clay coating in the kitchen.
Use satanite for the clay. you will read about AP-green, Atlas/Rutland furnace cement, etc., but satanite is cheap, reliable, and works perfect.
Make a thin mix, about like heavy cream, and apply a wash to the whole blade. Dry with a hair dryer or heat gun.
Thicken the mix with more satanite until it is about like sour cream. Apply this to the spine area, bringing it down toward the edge. Stop about 1/4" before the edge. Do the same to the other side. Use a popsicle stick to smooth the layers to about 1/8" thick. Take your fingers and wipe the edge in a straight line ,removing the excess along the edge. This will leave the ha exposed for about 1/4". Dry the blade with the hair dryer.
Note: If you as doing a blade that you wish to control sori somewhat, you can wipe the satanite off the mune ( spine).
Do yaki-ire as desired, keeping the austenitizing temperature on the lower side.
After quench, clean the blade and examine the edges for ha-giri - tiny cracks running from the edge inward. If there, discard the blade and start again.
A light sanding, followed by a quick dip in FC may show the potential hamon line. This is not the final result, just a confirmation of different structures in the blade.
If inspection goes well, do the shitaji-togi ( foundation polishing) - the hamon may not be visible at all at this point. Get all the shaping right at this stage. Removal of excess metal will not be possible in the next stage.
Please Note:
The blade will be getting sharp as you do togi. Use caution as you go, and extreme caution in the final stages of shiage-togi. Misuse of things like hazuya stones and nugui can lead to having no finger prints if not done right. Doing a hybrid polish on your first several blades is a good idea.
Continue onto shiage-togi ( finish polishing), where the hamon will start to appear.
Use of a variety of methods and etchants can bring the subtleties of the hamon out in the final steps.
General notes:
The hamon will not be exactly where the clay stops. Experience, and your own equipment will teach you how to place the hamon.
If the hamon does not appear to have developed, re-do the clay work and HT.
Note that fast oil is safer, but any hamon will be faint or may not exist at all. Brine will develop the most activity ( hataraki).
More complex hamon, greater hataraki, ashi, and other features can be developed by changing the shape of the edge of the thicker clay line. Make the line wavy and you can get notare; poke it with a stick into small ridges and get Choji or many other patterns; make small lines to the edge with a slightly thinned slurry and create ashi.
There are several good books on the subject, and some good DVD's.
A few are:
Walter Sorrells - Hamon ( and his entire set on Japanese blades)
Setsuo Takaiwa - The Art of Japanese Sword Polishing
Clive Sinclaire - Samurai Swords
Stacy