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The similarity system

  • #501
  • Jul 6, 2013 4:26pm Jul 6, 2013 4:26pm
Quoting Thoughts
I believe you figured out the patterns faster than I did Lirbig. I gained insights into some of the concepts from your posts. My appreciation of the various trade types goes something like this: * If one enters at a dissimilarity, we have a lower probability trade (as we dont know where the price will go from that point) except there are very strong reasons giving us a bias for one direction. * If one enters at a similarity which happened after a single dissimilarity 'event' or dissimilarity 'period', the trade has better probability. We enter looking...

Well said!!
  • #502
  • Jul 6, 2013 4:30pm Jul 6, 2013 4:30pm
Quoting cfdtaleong
I so needed that thought walk through. I am of the opinion that I am not brightest light bulb around here so this post really helps. Thank you.

Your welcome, glad to help.
  • #503
  • Jul 6, 2013 5:04pm Jul 6, 2013 5:04pm
Ok after much re-reading I've realized when using the BB and stoch method, the principle behind the trading is that I have to

1)Look for dissimilarity and mark that for a profit target
2)Wait for the correct similarity to occur. By this I mean the correct "price action" at BB bands for entry instead of blindly entering at the next similarity that forms. The correct "price action" has been described already by people who have much better understanding of the system so I will not mention here and also because my level of understanding does not qualify me to do so.
3)If the correct similarity is at level above the dissimilarity then it is sell, if below it is buy
**)This is only part of the whole system, the dissimilarity part. It gives a lot less trades than the similarity part of the system if I may use the word

1)For the similarity part the idea is actually we are also looking for a dissimilarity BUT the difference is that the dissimilarity is "temporary". We find this at the stoch part of the charts where the stoch is either ahead or behind the actual price.
2)Once we find it we expect the stoch to "catch up" with actual price and create similarity.With this mind we will trade in the "catch up" direction till actual similarity is created.
3a)If the stoch is lagging and below actual price ema we buy? Because price leads so the stoch must catch?
3b)If the stoch is lagging and above actual price ema we sell? Because price leads so the stoch must catch?
3c)If the stoch is leading and below actual price ema we buy? Because price leads so the stoch must follow?
3d)If the stoch is leading and above actual price ema we sell? Because price leads so the stoch must follow?
*)I am a little confused from 3a to 3d, help is much ,much apperciated
**)This is the part of the system the gives more trades but smaller profit targets if I am not wrong.

I hope I am "fishing" right. Any mistakes in the line of thought please let me know. Thank you everyone for the time and space.
I want more brain power!
  • #504
  • Jul 6, 2013 8:25pm Jul 6, 2013 8:25pm
Quoting whoareyou
{quote} Excuse me for asking, but if the ci is so erractic why were you an avid user of it? Never heard of it before this thread..
It is erratic with it's 'repainting', but it's how you use it. There is certain patterns I used to spot changes in trends, for example buying dips in an uptrend or selling peaks in a downtrend.
  • #505
  • Jul 6, 2013 8:27pm Jul 6, 2013 8:27pm
Quoting Baillie
{quote} Thanks Bro, I agree with you, was just pointing out from the questions that traders were asking about sl, tp, which way to trade, that those answers are there if you don't go too fast through the thread. I think that even if Eurusdd does not tell us the other things, this concept alone should spark a thought process in itself, that will lead us to those things or very close. I am still looking at combining the two methods, have to have 3 charts open for best view.
We will get there eventually.
  • #506
  • Jul 7, 2013 5:30am Jul 7, 2013 5:30am
Quoting Ralome
{quote} Hi Hercs, It simply visualizes the concept outlined by Eurusdd. You have the BB on price and Stochs, and the idea is to check the position of the price/stochs in relation to the BB lines. My indy displays the difference in the position (based on percentages, 2 standard deviations = 100%). The lines 1 and 2 equal to 100%/200% difference. Check the big spike on my picture (I know it's not real time, but past values don't repaint). At that moment, close price (=1EMA ) is below the middle line, but stochs is above the upper band line, so...
Hi Ralome,

Can put your indicator or template, I just want to compare with Eurusdd chart. .. thanks

Bomi
  • #507
  • Jul 7, 2013 5:42am Jul 7, 2013 5:42am
Quoting Bomi
{quote} Hi Ralome, Can put your indicator or template, I just want to compare with Eurusdd chart. .. thanks Bomi
I don't understand your request, please clarify
Even if you fall on your face, you're still moving forward.
  • #508
  • Jul 7, 2013 9:23am Jul 7, 2013 9:23am
Quoting vanderpjer
{quote} If hedge is allowed, then why not opening both trades (BUY/LONG) when difference occurs (point A) and close one for profit when similarity appears (point B) and then wait for the other open trade to return to difference level (point A) and close that one too for a "positive zero"?

Why would you do that? It's just the same as waiting for the similarity to be restored and then opening a single trade towards the price of the dissimilarity. Only you would pay one extra spread.
  • #509
  • Jul 7, 2013 2:01pm Jul 7, 2013 2:01pm
Quoting Eurusdd
>97.345% of the time the ZZ line will appear after price/1EMA hits one of the outer band!!! Therefore, when ZZ appears and the 1EMA has not hit an outer band, you have 97% guarantee that price will continue in that direction until it hits the band! With right money-management you should be good and avoid wrong trades!!!
Attached Image (click to enlarge)
Click to Enlarge Name: eurusdm15.png Size: 35 KB


Ok base on what Eurusdd has been teaching..at circle A the ZZ appeared but 1EMA is not at an outer band at the point I should have traded in the prevailing direction and in this a short which turned out nicely.

At circle B the ZZ appeared the 1EMA at that point is already at/outside the band...and according to what Eurusdd has been saying the direction is highly false and should be considering a long in this case. Another reason to go long is because there is also a case of dis-similarity and similarity which I did not mark out in the picture.

Someone please kindly tell me if I got it right or wrong? I don't a expect free meal here.....just a nudge in the right direction, a simple right or wrong will help a lot.

Thanks!!!!
I want more brain power!
  • #510
  • Edited 4:31pm Jul 7, 2013 4:19pm | Edited 4:31pm
Quoting cfdtaleong
{quote} {image} Ok base on what Eurusdd has been teaching..at circle A the ZZ appeared but 1EMA is not at an outer band at the point I should have traded in the prevailing direction and in this a short which turned out nicely. At circle B the ZZ appeared the 1EMA at that point is already at/outside the band...and according to what Eurusdd has been saying the direction is highly false and should be considering a long in this case. Another reason to go long is because there is also a case of dis-similarity and similarity which I did not mark out in...
I don't see
enough reason to go long there. Don't be surprised if eurusd open lower!!! Wait for sometime after the opening before you go long cause, weekends are crazy stuffs.
  • #511
  • Jul 7, 2013 4:34pm Jul 7, 2013 4:34pm
Quoting Eurusdd
{quote} I don't see enough reason to go long there. Don't be surprised if eurusd open lower!!! Wait for sometime after the opening before you go long cause, weekends are crazy stuffs.
Thank you!!!
I want more brain power!
  • #512
  • Jul 7, 2013 5:00pm Jul 7, 2013 5:00pm
MARKET JUST OPENED at my end and EURUSD is down!!! See? hmmm. From this moment you can then look for a buy-trade!
  • #513
  • Jul 7, 2013 5:06pm Jul 7, 2013 5:06pm
Quoting Eurusdd
MARKET JUST OPENED at my end and EURUSD is down!!! See? hmmm. From this moment you can then look for a buy-trade!

Target around 2880?
  • #514
  • Jul 7, 2013 6:25pm Jul 7, 2013 6:25pm
becareful to buy EUR/USD 4HR ,DAILY AND WEEKLY are down
hope its ok to shoot in my opinion
  • #515
  • Jul 7, 2013 8:43pm Jul 7, 2013 8:43pm
Quoting Eurusdd
MARKET JUST OPENED at my end and EURUSD is down!!! See? hmmm. From this moment you can then look for a buy-trade!
Yes I see thank you! Much learning acheived
I want more brain power!
  • #516
  • Jul 7, 2013 9:38pm Jul 7, 2013 9:38pm
Quoting cfdtaleong
{quote} Yes I see thank you! Much learning acheived
Attached Image (click to enlarge)
Click to Enlarge Name: y.PNG Size: 66 KB
  • #517
  • Jul 7, 2013 9:52pm Jul 7, 2013 9:52pm
AUDUSD dissimilarity corrected:
Attached Image (click to enlarge)
Click to Enlarge Name: trade.png Size: 72 KB


Now we are able to find dissimilarities and we must find a way to correct enter the trades, suggestion guys?
"In God we trust."
  • #518
  • Edited 10:16pm Jul 7, 2013 9:55pm | Edited 10:16pm
Quoting renanc93
AUDUSD dissimilarity corrected: {image} Now we are able to find dissimilarities and we must find a way to correct enter the trades, suggestion guys?
I think Madmoney had a problem with this particular case. He wasn't sure where to enter. I cannot tell you where to enter because we all have different accounts. That is why I said we should manage our trades above/below marked prices!!!!
There are ways to produce LONG winning streaks in this market! To do that you need more than the similarity principle! You need the revolution principle and the delay principle too! With these two, forex trading is easy! But you can only succeed with these techniques if you are the only one using them and the people you are trading against do not have a clue - as to what you are doing!!!
  • #519
  • Jul 7, 2013 10:07pm Jul 7, 2013 10:07pm
Quoting Eurusdd
{quote} I think Madmoney had a problem with this particular case. He wasn't sure where to enter. I cannot tell you where to enter because we all have different accounts. That is why I said we should manage our trades above/below marked prices!!!! There are ways to know how to produce LONG winning streaks in this market! To do that you need more than the similarity principle! You need the revolution principle and the delay principle too! With these two, forex trading is easy! But you can only succeed with these techniques if you are the only one...
Lol, your killing me.
  • #520
  • Jul 7, 2013 10:10pm Jul 7, 2013 10:10pm
Quoting Eurusdd
{quote} There are ways produce LONG winning streaks in this market! To do that you need more than the similarity principle! You need the revolution principle and the delay principle too! With these two, forex trading is easy! But you can only succeed with these techniques if you are the only one using them and the people you are trading against do not have a clue - as to what you are doing!!!
Hi Eurusdd,

Can you explain more about this ?

Thanks
Similarity can change your life !
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