diff --git a/CHANGELOG.md b/CHANGELOG.md
index b9aef50..37ae2bd 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,5 +1,10 @@
 # Change Log
 
+## 0.3.0
+
+* Automatically hide files/directories that are named with relative paths in .hideInTxtEd
+
+
 ## 0.2.0
 
 * fixed files/directories not rehiding after their parent directory is closed and expended
diff --git a/README.md b/README.md
index 960316f..bd0958d 100644
--- a/README.md
+++ b/README.md
@@ -19,5 +19,17 @@ Easily focus on the task at hand by hiding irrelevantly files and directories.
 * Unhide children of a directory
   * unhide by right clicking a directory and selecting "Unhide Children"
 
-## Todos
-* add ability to save state of hidden files/folders and rehide files/folders when the project is reopened.
+* Hide files specified in .hideInTxtEd
+ ```
+ #this is an example .hideInTxtEd file
+ #empty lines are ignored
+
+ #any matching file/dir path (relative to the current dir) will be hidden:
+ somedir
+ foo.txt
+ bar.txt
+ otherdir/baz.txt
+ otherdir/yetanotherdir
+ #hide this file also
+ .hideInTxtEd
+ ```
diff --git a/index.coffee b/index.coffee
index 9c18d08..b36dd44 100644
--- a/index.coffee
+++ b/index.coffee
@@ -1,4 +1,5 @@
 HideItems = require "./lib/hide_items.coffee"
+require "./lib/hideFilesNamedInTxtFiles.js"
 
 module.exports =
   activate: (state) ->
diff --git a/lib/hideFilesNamedInTxtFiles.js b/lib/hideFilesNamedInTxtFiles.js
new file mode 100644
index 0000000..c00fd8f
--- /dev/null
+++ b/lib/hideFilesNamedInTxtFiles.js
@@ -0,0 +1,68 @@
+const hidingFileName = '.hideInTxtEd';
+
+const fs = require('fs');
+const path = require('path')
+const getDirectories = rootDir => fs.readdirSync(rootDir).map(file => path.join(rootDir,file)).filter(filePath => fs.lstatSync(filePath).isDirectory());
+const fileExists = path => fs.existsSync(path) && fs.lstatSync(path).isFile();
+const dirExists = path => fs.existsSync(path) && fs.lstatSync(path).isDirectory();
+
+let pathsToHide=[], addedListenerOnPath=[], allProjPaths=[];
+
+function lookForStuffToHide(curPath) {
+ getDirectories(curPath).forEach(lookForStuffToHide);
+ const hideListFilePath = path.join(curPath, hidingFileName);
+ if (fileExists(hideListFilePath)) {
+  const subFilesToHide = fs.readFileSync(hideListFilePath).toString().split('\n').filter(s => s.length && s[0]!=='#');
+  subFilesToHide.forEach(file => {
+   const fullPath = path.join(curPath, file);
+   pathsToHide.push(fullPath);
+  });
+ }
+}
+
+function addClasses(treeView) {
+ const spanA = treeView.element.querySelectorAll('span.icon-file-directory, span.icon-file-text');
+ for (let i=0;i<spanA.length;++i) {
+  let span=spanA[i], li=span.parentElement;
+  while (li.tagName!=='LI') li = li.parentElement;
+  li.classList.toggle('hide-files-hide', pathsToHide.indexOf(span.getAttribute('data-path'))>-1);
+ }
+}
+
+function addListenerToDirEntry(treeView, entryDir) {
+ if (entryDir.entries!==undefined) Object.keys(entryDir.entries).forEach(subEntry => {
+  addListenerToDirEntry(treeView, entryDir.entries[subEntry])
+ });
+ if (addedListenerOnPath.indexOf(entryDir.path)===-1 && entryDir.onDidExpand!==undefined) {
+  addedListenerOnPath.push(entryDir.path);
+  entryDir.onDidExpand(()=>{
+   addClasses(treeView);
+   addListenerToDirEntry(treeView, entryDir);
+  });
+ }
+}
+
+function scanPaths(paths) {
+ pathsToHide=[];
+ addedListenerOnPath=[];
+ paths.forEach(lookForStuffToHide);
+ pathsToHide = pathsToHide.filter(itemPath => fs.existsSync(itemPath));
+ let expandableDirs = pathsToHide.map(curPath => fs.lstatSync(curPath).isFile() ? path.dirname(curPath) : curPath);
+ expandableDirs = expandableDirs.filter((dir,pos) => expandableDirs.indexOf(dir)===pos);
+ atom.packages.activatePackage('tree-view').then(result => {
+  treeView = result.mainModule.treeView
+  expandableDirs.forEach(dir => addListenerToDirEntry(treeView, treeView.entryForPath(dir).directory));
+  addClasses(treeView);
+ });
+}
+
+atom.project.onDidChangePaths(newPaths => {
+ allProjPaths = newPaths;
+ scanPaths(allProjPaths);
+});
+
+atom.project.onDidAddBuffer(buf => {
+ if (typeof buf.file==='object' && buf.file!==null && typeof buf.file.path==='string' && path.basename(buf.file.path)===hidingFileName && typeof buf.onDidSave==='function') {
+  buf.onDidSave(() => treeView!==null && scanPaths(allProjPaths));
+ }
+});
diff --git a/package.json b/package.json
index c1ac7ad..3c130f4 100644
--- a/package.json
+++ b/package.json
@@ -1,7 +1,7 @@
 {
   "name": "hide-files",
   "main": "index.coffee",
-  "version": "0.2.0",
+  "version": "0.3.0",
   "description": "Hide files and folders in the file tree",
   "repository": "https://github.com/imamathwiz/atom-hide-files",
   "license": "MIT",
@@ -9,6 +9,10 @@
     "name": "Brian Weiser",
     "url": "https://github.com/imamathwiz"
   },
+  "contributors": {
+    "name": "ESC",
+    "url": "https://github.com/softwarecreations"
+  },
   "bugs": {
     "url": "https://github.com/imamathwiz/atom-hide-files/issues"
   }