Disliked{quote} This is funny, I do not mean to single anyone out but this is the problem with traders, all are fascinated with EURUSDD's results and are visiting the thread that explains the concept or a principle to his fantastic results, but do not get that you should read from the beginning of the thread.Ignored
QuoteDislikedSimilarity is about parity or equivalence across all measuring sticks. If you have a ruler, 100cm = 1meter, no matter what ruler you use. With market prices though, it's a moving object: Price changes value Duration of value changes via Time Prices are dependent on Source (Broker) The theory then is that if you grab a price graph on a 5M chart, and then add any indicator that matches the swings of Price (you must change the settings) In theory, the price and the indicator should be the same. The theory must also hold true for different timeframes. So the 5M / 15M / 1H and 4H should have the same swings relative to their larger timeframe. The moment you have DISSIMILARITY is the trade opportunity because this is arbitrage. Once SIMILARITY is restored, then the trading window is closed.
That is why I love VLADY1974. You are super. That is the whole truth.
This is why when someone asked me what happens after similarity is restored, I refused to fall into that trap!! Thank you vlady1974..
A perfect example is the arbitrage window below.. There is a white on 1hr but none on 30min. That is why I said, UP is coming. We saw how high she went.