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Similarity Present Day

  • #21
  • Jan 31, 2017 12:45am Jan 31, 2017 12:45am
@acetrader: When I have some free time (maybe next weekend or the weekend after) I can try to backtest ist using R. However, it's not clear what your signal is. Should the stochastics be above 80/below 20? What about the RSI?
  • #22
  • Jan 31, 2017 5:58pm Jan 31, 2017 5:58pm
Quoting AntiCre
@acetrader: When I have some free time (maybe next weekend or the weekend after) I can try to backtest ist using R. However, it's not clear what your signal is. Should the stochastics be above 80/below 20? What about the RSI?
If the EMA 1 & PRICE are outside of the Bollinger Bands ABOVE & RSI is ABOVE 80% & Stochastic 300 & 100 are ABOVE
80 & turning DOWN this would be considered SIMILARITY & considered a SELL signal. The reverse for a BUY signal.

What we are looking for is for ALL indicators to lineup giving the same SIGNAL.

There are FIVE parameters that need to be met for a VALID signal.

1. EMA 1 Outside of Bollinger Bands.
2. Candle Outside of Bollinger Bands.
3. Stochastic 100 BELOW 20% or ABOVE 80%.
4. Stochastic 300 BELOW 20% or ABOVE 80%.
5. RSI 8 BELOW 20% or ABOVE 80%.

I have noticed that if at least FOUR of these FIVE lineup it can be a GOOD indication of a turn in PRICE is
coming. The BIG question for me has always be WHEN will it TURN. Sometimes PRICE will turn within the next 4 candles
& there are time when it may be several hours.

I hope this helps. Thank you for your time to test this out. I'm most interested in your results.
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  • #23
  • Jan 31, 2017 10:46pm Jan 31, 2017 10:46pm
Yes, it helped. Thanks!
  • #24
  • Feb 1, 2017 9:29am Feb 1, 2017 9:29am
I appreciate you taking the time to test this. I think what EURUSDD shared on Similarity has merit,
but how much I'm just not sure about. I have taken a few trades using my approach to Similarity & was
successful for the most part. The waiting can be an issue for a trader seeking constant action &
wanting to always to be in the market. What I find interesting is the fact that after a signal is
given PRICE will turn at some point in the future, but when that point will be is the big question for
me. This is ALMOST like a early warning system.

______________________
  • #25
  • Feb 2, 2017 1:36pm Feb 2, 2017 1:36pm
AntiCre Thought I would share with you yesterdays observation on the GBP/USD pair on a 15M
chart. Three of the indicators lined up giving a buy signal & PRICE moved up on the next candle
gaining 40-55 PIPS before a sell signal was given with all 5 indicators lining up for this signal.
PRICE continues on UP giving TWO more SELL Signals with all FIVE indicators lining up on each
signal. After the third signal PRICE turned DOWN on the SIXTH CANDLE & at this time is still
moving DOWN. This is the MAIN concern I have trading SIMILARITY the way I designed it. It WORKS,
but the BIG question is when is it going to work after the signal is given. If you could gain
the answer to that question, then we would maybe be on to something.

Looking forward to you test results & your views in the coming downs.

__ ___ ____ __
  • #26
  • Feb 4, 2017 1:35am Feb 4, 2017 1:35am
Hi acetrader, now I've analyzed the M15 chart of last year. As you've observed yet, it can take many more candles until prize will really turn. And that's exactly what I've seen with my analysis: I've surveyed all cases which fulfilled your conditions. Then I compared the prize 5 candles later with the prize at signal. Just in 48.32 % you can see a turn in prize 5 bars after you get your signal. This means that you need another pinpointing entry signal (don't aske me - if I'd have find some, I most probably wouldn't be in this place ...).
  • #27
  • Feb 4, 2017 5:37am Feb 4, 2017 5:37am
Quoting AntiCre
Hi acetrader, now I've analyzed the M15 chart of last year. As you've observed yet, it can take many more candles until prize will really turn. And that's exactly what I've seen with my analysis: I've surveyed all cases which fulfilled your conditions. Then I compared the prize 5 candles later with the prize at signal. Just in 48.32 % you can see a turn in prize 5 bars after you get your signal. This means that you need another pinpointing entry signal (don't aske me - if I'd have find some, I most probably wouldn't be in this place ...).
Based on your findings would you trade this? Do you see it as an overall winning system as it is even considering how
long it takes PRICE to turn after some signals? I would appreciate any further views or suggestions you have. Thank you.
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  • #28
  • Feb 4, 2017 10:46am Feb 4, 2017 10:46am
Hi acetrader,

no, I wouldn't trade it. Maybe you can use it in order to determine the state of the market. However, 'overbought' and 'oversold' is not a guarantee that prize will immediately turn. If you've read the complete similarity thread than you will have seen even Eurusdd traded his similarity method (which is very different from what you try to do) by hedging positions. I haven't really analyzed how long it takes until prize changes its direction. But if it doesn't after 5 candles why would you trade this? I can only suggest to study some of Eurusdds ideas on prize levels that will be taken out. I've used the ZZ indicator (which shows also the repainted legs) in order to decide if a top/bottom will be taken out until a new trend starts ...

Nevertheless, wish you much success with your trading!
  • #29
  • Feb 5, 2017 5:55am Feb 5, 2017 5:55am
Quoting AntiCre
Hi acetrader, no, I wouldn't trade it. Maybe you can use it in order to determine the state of the market. However, 'overbought' and 'oversold' is not a guarantee that prize will immediately turn. If you've read the complete similarity thread than you will have seen even Eurusdd traded his similarity method (which is very different from what you try to do) by hedging positions. I haven't really analyzed how long it takes until prize changes its direction. But if it doesn't after 5 candles why would you trade this? I can only suggest to study some...
AntiCre I appreciate your views & suggestions. I feel the same as you after studying this method over many months.
Going to stick to what has been working for me. There are many ways to trade, but you have to find a way that works
for you. What works for one may not work for another. Thank you for your review of this method. Best of trades to you.

________________
  • #30
  • Edited 11:02pm May 30, 2018 10:11pm | Edited 11:02pm
Quoting acetrader
{quote} If the EMA 1 & PRICE are outside of the Bollinger Bands ABOVE & RSI is ABOVE 80% & Stochastic 300 & 100 are ABOVE 80 & turning DOWN this would be considered SIMILARITY & considered a SELL signal. The reverse for a BUY signal. What we are looking for is for ALL indicators to lineup giving the same SIGNAL. There are FIVE parameters that need to be met for a VALID signal. 1. EMA 1 Outside of Bollinger Bands. 2. Candle Outside of Bollinger Bands. 3. Stochastic 100 BELOW 20% or ABOVE 80%. 4. Stochastic 300 BELOW 20% or ABOVE 80%. 5. RSI 8 BELOW...
Thanks for opening this interesting thread acetrader !
Stoch and other indicators used here can be only useful if we really know how to Use them ... but it is not all, we must also know about some kind of price action: for example, how this indicator can do a "adaptation" to the fast market moving and behavior ... does it sound right ??? or may be i think too far ... actually i just need to take is easy, think simple, take what is available, do some tests and see the result ?
  • #31
  • Edited 12:26pm Jun 7, 2018 10:41am | Edited 12:26pm
Quoting AntiCre
Hi acetrader, no, I wouldn't trade it... I've used the ZZ indicator (which shows also the repainted legs) in order to decide if a top/bottom will be taken out until a new trend starts ... Nevertheless, wish you much success with your trading!
Hi AntiCre,
Interesting idea about zz, and as i read some where that Fractal works similar as zig zag, it tries to catch the top/bottom, although just in some bars (normally fractal calculates highest/lowest of 5 bars only). And using Fractal-signal is good, because we can get x% more efficient results than similarity/Dis-similarity principle. On some cases, the Time of appearing of this Fractal-signal is interesting to watch, as it can give another 'dimension' of the market foot print, and we can find fractal every where, even in the nature : https://www.mnn.com/earth-matters/wi...ound-in-nature
But the question is: it must be exactly at the same position or not ??
  • #32
  • Edited 10:03am Jun 11, 2018 6:22am | Edited 10:03am
Quoting AntiCre
Hi acetrader, no, I wouldn't trade it. Maybe you can use it in order to determine the state of the market. However, 'overbought' and 'oversold' is not a guarantee that prize will immediately turn. If you've read the complete similarity thread than you will have seen even Eurusdd traded his similarity method (which is very different from what you try to do) by hedging positions...
Hi AntiCre, about this ... thanks for reminding me ... there, from old posts afaik it is fast to reach our target if we trade using M1 TF. Acetrader does not use ZZ for this setup, but you use ZZ ... hm, now i know that we may not stick to just one idea, there are many ways to trade
So, all are related and can be used: MA, BB, Stoch, ZZ, RSI, Env, Dev, Fibo etc ... may be the key is, how can we use them in the right way. Do you have statistic data about how long will it take maximum (longest hours/days) to reach your target using this setup ?
  • #33
  • Last Post: Sep 29, 2023 10:34am Sep 29, 2023 10:34am
Quoting acetrader
{quote} Take a look at this chart if it uploads. Notice the first signal from the left side of chart price took off immediately. The second took off off immediately & the third signal price was slow to turn. Now on each of these signals notice where Stochastic 100 & 300 as well as RSI 8 where located. What signals were they giving? Let me know what you think after you observe more charts using this one as a guide. The more you look the more you will understand what these signals are telling you. Look for all indicators to line up & you have SIMILARITY....

hello acetrader,
I hang up on your thread because I too have been and I am a frequent scholar of the thread dissimilarity of EURUSDD and I believe it contains various pearls to use... the answer to your question about the different signals that your indicators can give is MOMENTUM. Look at how strongly the price arrives and what few volumes of sellers must exhaust before turning (normal) and instead see with what momentum the price arrives at the third signal that the indicators give ( you can see clearly from the last candle m 15), it is obvious that to turn the price takes longer.
This is just an opinion of a young scholar who wants to keep learning...
What do you think?
By the way I wrote you a PM on my vision I hope you can answer me when you have time and excuse me if I was inappropriate or invasive ..
thanks
Flavio
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