The Equilibrium, a key to success!

Hello dear traders,

First of all thank you for your approval, your compliments and your interest in the new indicator.

As mentioned in the blog:

You will notice in part that the second indicator sometimes outputs different values than the first, but this is not critical at this time because the first indicator works. The second indicator is actually only intended to filter out the tips. If we tackle the project with the two lines crossing each other, then we have to deal with it to find out the bugs. If you are a programmer, you will know that finding a bug is far more difficult than programming a complete indicator.

The main indicator works to realize the joint project, the second indicator, we will take care of later. Thanks again and a nice weekend

best regards

keep it up man
Nice technique. I am backtesting your system. Wait my result.

[quote=voketexpert;11530306]{quote} keep it up man Nice technique. I am backtesting your system.

Hello voketexpert,

Welcome to our blog and thank you very much for your support. We are happy about every Trader who participates in this project and has a lot of experience.

Thank you and nice weekend

Very important!!!!

Hello dear trader, and all who participate in our project .....

The smZigZagBionics3.1 is not an EA or standard indicator but an auxiliary indicator developed within a project work. It's not about finding out if the indicator works, as it does not provide any entry to buy or sell. We want to find out, which setting outputs the most optimal signals, to recognize a possible trend direction. Thanks again for your help and support.

I wish you a great weekend.

Hello Bionics,

Thank you for sharing a very nice indicator. I immediately integrated the indicator in the chart.
I tried analyzing chart of EURUSD D1 using this indicator. I used the indicator setting on 12/6/3.



EURUSD has created a very weak upward trend with a number of 48.1. This suggests that the price may fall further.

Below there was a very strong downward trend with the numbers 17.1 and 18.1. The zone was able to stop these very strong downtrends. Therefore, these zones are very strong. I thought the price might fall to the 18.1 zone. Because the 17.1 zone is used many times and is not fresh.

Best regards,

I thing we are still in equilibrium... And nobody knows which direct will be go EURUSD.. And zone between 1.1822 and 1.1562 is the strongest zone the last 2 years... Which mean it will be very strong support or resistance in future...

Hello Chartmaniac,

Yes. Nobody knows the future. The chart image I posted is a personal analysis and I am not a professional so I think the result of EURUSD will be very different.



You are absolutely right. In the EURUSD MN chart, the current price is still in equilibrium. And your zone is a very important zone that the market has been aware of over the years. Thank you for pointing out. I will pay attention to your zone.

Best regards,

We will see in the future :-)

Hello dear traders, and all subscribers,

I have looked after the update of FF this morning again in the blog. First of all many thanks for your commitment and your industriousness. I am very proud of you as you are committed to this project and strive for it. Thank you very much, I realize that you take the project very seriously. At this point, I would like to once again thank all subscibers for their loyalty and support. It's fun to work with you and only together we can get good results. You have posted an important sentence: We want to see in the future :-). This applies to all indicators and especially to all EA. There is an EA on the internet who prizes a $ 500 to $ 2,000,000 bet within 30 minutes. Anyone who sees this will think for a moment about whether to invest a lot of money to buy this EA. My advice, forget it and learn the right action only with the pure chart. I'll post a post on Tuesday showing you the truth about the forex market. And the result is frightening, but not hopeless, if you do your job properly. I do not want to claim that I was the only trader to have the picture. I'm just a little fish in this big shark tank. My advantage is that I know that. But even as a small fish in the shark tank you can survive. You have to be creative and know exactly how the big fish think and act. If you are inconspicuous and do no harm them, you can survive very well. If you try to work against the market, you will be eaten.

Today I would like to post a video on how important a strong community is. This video was taken by chance in Kruger National Park, the largest game reserve in South Africa. It is so impressive that over 80 million people have seen this video.

See for yourself how strong we can be together.



PS: The little calf has survived, and we see how important sometimes courage and determination can be. But without a large community in the background, it does not work.

Thanks again and a good start into the new week

best regards

Update smZigZagBionics_v3.2 and smZigZagBionicsOSC_v1.21
(If you are new to the blog, please read in advance post, 663, post 667 and post 673, where the help indicator is explained)

Hello dear traders,

Please find attached a current update of the two auxiliary indicators smZigZagBionics_v3.2 and smZigZagBionicsOSC_v1.21.



Indicator with dark background



Indicator with light background

smZigZagBionics_v3.2
You can now change the size of the numbers above and below the lines.

smZigZagBionicsOSC_v1.21
Maybe the indicator could work better now, maybe the differences will be caused by the live prices. We work on it. Thanks again to Georg for the fast and great support.




Good luck with the start and I am very happy about your Feedback

Best regards

Hello dear traders,

I noticed that there is an error in smZigZagBionicsOsc_v1.21, some values are not output.



The optimal combination is therefore:

Use smZigZagBionics_v3.2 with the smZigZagBionicsOsc_v1.2. Although the same encoding was entered, errors could also occur here due to the price action. For some test runs, both indicators worked identically. Since we really only need the first indicator, I think we can live with it until the bug is fixed.

Beautiful evening.
best regards

Dont miss very STRONG equlibrium on USDCHF for short :-)

Really interesting !
Thanks

Hello rosalieone,

First of all, welcome to our blog and many thanks for your kind words. We would all be very happy if you also want to contribute your experiences to the project. I wish you a lot of fun on this blog and if you have any questions, we are all happy to help.

Good luck and best regards

Projekt Nr.1 Results

Hello dear traders,



here briefly an evaluation in the H1 with the revised indicator. I have incorporated the trend strengths in color.



Pay attention to the weak trend that can be a pullback. That should be quite interesting.

best regards
Michael

Tomorrow we start with project Nr.2

Hello dear subscribers, hello dear traders,

First of all, thank you for your interest and your feedback on our first project to determine the trend strength. This project is now on its way and I ask you to keep an eye on this project and to analyze it. All subscribers will be happy about your results. As already announced, the next project 2 builds on the indicators of Project 1. It is a completely new chart view that will provide faster information in the future.



Tomorrow, I will provide the first information and I am convinced that I am creating an interesting milestone for an even faster overview. I wish you now once a wonderful evening and a nice end of work.

best regards
Michael

Hello, though i have not said anything this thread,i want to thank you, your works are wonderful and you are a very selfless man. Be Blessed

I agree 100%

Thank you for sharing your work.

Project number two


Hello dear subscriber,

I think there is a consensus that most of our traders are only small fish in the big shark tank of the forex market. The daily turnover in the Euro US Dollar is about $ 1.5 trillion. If you were to trade ten contracts in US dollars in one day, that would mean $ 1 million in sales. It's like putting $ 1 against a $ 1.5 million market. I think it soon becomes clear that we can not move anything in this market. In principle, there are only two ways to win, you move the market or you follows the big Player. In order to get involved, you have to recognize relatively quickly where the big players want to go. As most of us have already realized, this assessment is a ride on the volcano. This is also the reason that about 90% of dealers make a wrong assessment and therefore lose. The big players in the market not only earn more money but also have a much better market appreciation. Let's look at a concrete example of Goldman Sachs in the years 2011-2014.



In these examples, I'm less concerned with showing the net gains in millions made by Goldman Sachs, albeit this scoring would be frightening enough. Much more interesting, however, is the ratio of the winner days to the loss days.



Of course, the loss days in 2015 were significantly higher than in the previous years, but let's take a closer look at the average values achieved in 2011-2015. 1,132 winning days are faced with 134 losing days. That means in nearly 90% of the time Goldmann Sachs is right with his market assessment. If you then compare the amount of losses with the levels of profits, the extent of the professional approach becomes clear. At least now you know against which professionals you act daily. We should have respect, but do not be afraid. But we need information about what these big players are going to do next.

The entire market has changed enormously as a result of the various dealers that appear in the market. It is not the big ones who eat the little ones, but the slow ones are eaten by the faster ones. The high-frequency traders have noticed this long ago and, with their way of acting, make it difficult for the big players in the market. 10 years ago, this trend started slowly and I had to think about how I can have a chance in the market to survive in the future. If your competitor drives a 400 HP Ford Mustang, you can not win a race even with the best and fastest racehorse against him. What to do if you can not afford a Ford Mustang? Get carried away by the big player, you will never be the first to finish, but the result is enough to make interesting profits. However, you need a good brake and a quick reaction to avoid total loss.

Over many years, I have developed 3 laws that I adhere to.

Indicators

Many years ago, I too, like many others, began to analyze the market using the standard indicators and it has often worked. The MACD and RSI were also a life companion for me, but how many times was the market overbought and still the price went up. An indicator does not care if the price goes up or down. It is trailing and less accurate than the price table. Many traders need security and believe the indicator tells them where the market is going.

The market influences the indicator and not the indicator the market.

My first step for this: delete all standard indicators and search for clues. I did not get any further with the market analysis, not because it is bad, but because it is not suitable for me. Supply, demand and equilibrium was finally the breakthrough for me. The road is tough, but it was the only way for me. That's why I opened this blog many years later. Today I am working with auxiliary indicators, which I pay attention to, but these do not decide on entering or exiting a trade. If I can not trust myself, how should I trust indicators?

The big big players do not work with standard indicators and they are not used for trading. The big players know, however, that the small players pay attention to the indicators. Especially here in focus are the Fibonacci lines. These are good entrances for the high-frequency traders to stop the small players.
Sometimes I have the feeling that the big players push the indicators forward in order to be able to take the money from the small trader even faster. They know exactly that many traders hope for a change at the 61 retracement. A good point to push many out of the market.

News

In 2016, Deutsche Bank and many currency experts estimated that the EURUSD would reach 0.95 by the end of 2017. It is always fun in the evening at NTV (German news channel) to learn why the DAX, gold or the EURUSD has risen or fallen. Of course, the economy in each country is important, but not for me. For me, how investors respond to the news is far more important.

It does not matter what news goes about the ticker. The market is moving because people and computers are pushing the BUY or SELL button. And why they will BUY or SELL? Because they have an idea. And this idea often has nothing to do with the economic data. Why goes the stock of Apple down, although Apple released a sensational quarterly balance sheet? Well, maybe because investors believe Apple will not be able to increase or maintain profits in the next quarter. However, we will never know.

Not the news, but market participants influence the market.

When the FED or the ECB are holding their meetings, I take a break and let the big boys play with each other. This is not my league, so I stay away from the market. These FED or ECB sessions can not be assessed with the Equilibrium, it goes up and down indiscriminately and after an hour the price is often where the big outbreak started. Gambling is not one of my peculiarities, I try to act only in situations in which I think I can assess the market. But I'm also often wrong.

Opinion

100% of all dealers have an opinion, but only 10% are right. But which traders are right? Bertrand Arthur William Russell an English philosopher, mathematician and logician coined the phrase in early 1900:

That's all the trouble: The stupid are so safe and the clever ones so full of doubt.

Self-reflection is the mature form of self-doubt. People who are self-reflective are always in question, but not to become anxious and insecure like self-doubters, but to strengthen themselves from within. The clever doubt. They question their views, but they do not question themselves. Reflection protects against stupidity. It testifies to greatness, to revise his opinion of yesterday.

Maybe that's just our problem, we doubt it, so we listen to those who are sure, and then what happens can anyone think. We have to have the ability to form our own opinion - even against the tide. This "idiosyncratic" attitude results from the motif of independence. Only a few people have such a capability.

Conclusion:

If we know that 90% of all private traders lose, there is an easy way to change that. Whenever you want to move up, you have to do exactly the opposite and act down. But our brains are not prepared for a course that shoots high, acting exactly in the opposite direction. The fear of losses is often greater than the prospect of profits. If a craftsman did only 50% of his work correctly, he would be unemployed quickly. A trader who is 50% correct, would quickly succeed with the right money management. We have learned to make few mistakes, but in action you have to make mistakes to win.

The big challenge of action is not to win, but to behave properly when you have losses.

Since the big players know exactly where the other traders' stops are, we should make it difficult for them. That's why I often act against the trend and stay where only a few traders are. In order to be successful you should act contrary to the mass and certainly not be predictable. In addition, a successful trader must be a perfect tracker to succeed in the marketplace. But which tracks are decisive and which tracks can I neglect? An answer to that is provided by the equilibrium within the supply and demand zones. Nevertheless, it does not matter which strategy you use for your actions, the main decision to enter into a trade should always come from your main strategy. In my case, that is supply and demand.

If you have a particular zone in mind, you need a medium-term and short-term confirmation that this particular zone is relevant. I have already shown you a way of confirming the medium term, the trend strength within certain time units. This will provide you with basic information about a possible trend direction. Now it's about the short-term confirmation that could trigger my main decision. We should note here that the confirmations usually only take a few seconds. If you wait too long, the chance is over faster than you can imagine. Especially as Countertrend Scalper you have to make a decision within a few seconds and can not wait too long for confirmations. Every trader has his own individual strategy and procedure here. Let's take a look at different options that help a dealer make decisions.



When you first see the volume profile, order flow, footprint charts, or DOM orderbook as a CFD Forex trader, you think that these views of the market are the solution to all problems. Often we get a false truth in advertising these modules. Of course it's interesting to look inside a candle and see how many buy and sell orders have taken place within a certain price level and how big the volume was. This information is of no use to them to predict a future price development. When I was confronted with these techniques for the first time, I also thought that it was the solution to wealth. Of course, a trader gets a lot of information about what's happening in the market right now, but I get the same information with the candles. However, it is much harder to decipher this information from the candles.
Even a DOM order book does not do you any good, here are manipulations on the agenda. Large orders that are at a certain price level are erased shortly before reaching this price level and massively traded in the other direction. Another point is that we trade in interbank trading through a broker who passes on the prices. If I want to work with a Future Oderbook, of course I have different price than in CFD trading. It certainly looks nicer and more professional, whether it's actually an advantage is always at the discretion of the individual trader.



Let's take a look at the main indicator in CFD trading: the candles. There are different forms of presentation of prices. In addition to the Bar Chart and the Candle Chart, Heikin Ashi also has a smoothed candlestick display or the Renko, which is time-independent. Each form of presentation finds its followers and thus an authorization to exist in the market. The most widely used form of candlestick is the Candle Chart, and let's take a closer look.



Here you can see a bullish candle (close is above the open) and a bearish candle (open is above the close). For the bullish candle, the upper shadow ranges from close to high and the lower shadow from open to low. In the bearish candle, the upper shadow ranges from the open to the high and the lower shadow from the close to the low. The candle body shows the essential course within the candle from open to close. The candle is usually displayed in solid color or with gray shadows. This presentation is actually wrong for me, so you see in this image the correct form of representation. In the Bullish Candle, the upper shadow is red, while in the bearish candle the lower shadow is green. Why is this presentation more logical for me?

A candle displays the past price movements for a specific time unit. There are 4 crucial points open, close, high and low. Take the example of the bullish candle. From the open the course is running low, at this moment the candle body is red. Then the course goes back to the Open. The shadow is green, that's correct. The course is going to high, that means from the open to the high we have a green candle body. Then the course goes back to the close. Now the upper shadow must be colored red, because at the time of the close the price has gone from high to close. If you look at the finished candle, the bears at the top wick and the bulls at the bottom wick have the last word. The candle is now complete and past. In order to correctly display this past, the lower shadow should always be green and the upper shaddow always red.



If you see the left candle in a chart image, you can never tell exactly how the price within that candle has moved. It may well be that the course first runs from the open to the low, or from the open directly to the high. In case B we see a strong downward trend, which was immediately intercepted. In that case, one might be more cautious as to whether the course will not make such a strong setback again.



A similar situation, but in the bearish area. Not uncommon that in spite of a bearish candle, the course is pushed up sharply in the short term. Basically, it is very difficult for me to predict a further course from candle pictures. That's why I basically do not pay attention to doji or other candle pictures.



The next step I took was to eliminate the shadows and color them properly. With the bullish candle and bearish candle, there is no reference to the open, but the close can also be seen from the last candle and draw conclusions from it. Nevertheless, you can quickly cast the close on your chart image, if you need this information. The advantage of this view, you can see at a glance how strong the bulls and the bears were at the end of the candle. You can really see how the bears and the bulls are fighting with each other and can identify trends before that. Gaps are therefore very difficult or even impossible to localize, but gaps can not be used to derive reliable conclusions about future price developments. You realize that less information can be processed with this new candle view and less can sometimes be more. One point was crucial for me, I wanted a real price history, not smoothed, not time-independent like the Renko but with less information to capture the situation faster.



Here is a concrete example of how the chart looks in H1. In addition, the trend strength indicator was used by me, which gives me more information. You can see very well that trend reversals announce early, through the respective pullback within a candle. The type of candle representation I called Bionic Chart. Bionics (also biomimicry, biomimetic or biomimetic) deals with the transfer of phenomena of nature to technology. A well-known example of this is Leonardo da Vinci's idea of transferring bird flight to flying machines. An example from modern life is the velcro-inspired velcro, or think of dragonflies and helicopters. Also, the lotus effect has been brought from nature into our lives, which discs clean themselves, because no dirt sticks.

Bionics is based on the assumption that living nature, through its evolutionary course, develops optimized structures and processes from which humans can learn. The earth is nearly 4.5 billion years old and during this time nature has developed incredible things that benefit man already today. But we have not realized most things yet. Applying these 4.5 billion old processes to today's stock exchange (which is only 500 years old) or the forex market will bring significant benefits. Nevertheless, these processes only become an advantage if used and applied correctly. This brings a short lead to the point where everyone benefits from this. Maybe they have a small lead with this chart. At the latest when everyone uses this information, the market will be balanced again. But I have some more ideas ...



At first glance, they will not see a big difference with the Bionic Chart compared to the other chart models. The difference is in the detail. And we will deal with these details in concrete terms. The result is clear and fascinating at the same time. To illustrate the benefits of the Bionic Chart, I have to make some videos. Unfortunately this takes a few more days, so I ask for leniency and patience. Since we are still working on the first project, I am pleased about their further feedback.

I wish you a successful trading day

best regards

Yes and when you mention that 90% of private traders lose so we can presume that the trend will be the opposite of their positions (also mentioned here https://www.myfxbook.com/community/outlook and here https://www.forexfactory.com/showthread.php?t=761579).
I really like your new candles, its a new way to read a chart, gives much more informations
Well done !