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The similarity system

  • #1,641
  • Jul 13, 2013 7:12am Jul 13, 2013 7:12am
Quoting ~bull.bear~
{quote} Yeah. I have looked into this as well. It is more easy to find entry if found dissimilary in bigger TF, so can drop down to smaller TF to enter, or transform bigger TF indicator setting into smaller TF, so you would just use 1 TF to trade for this case.
Top-down analysis (from largest to small) and see the dis-sim on the smallest chart!
  • #1,642
  • Edited 7:52am Jul 13, 2013 7:28am | Edited 7:52am
Attached Image (click to enlarge)
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Even if you fall on your face, you're still moving forward.
  • #1,643
  • Jul 13, 2013 7:30am Jul 13, 2013 7:30am
Quoting Ralome
Pardy & cfdtaleong & Forex Lion & others: In order of appearance: dissimilarity starts -> dissimilarity ends -> dissimilarity gets corrected (most of the time) The pink dot marks the beginning of dissimilarity, the green dot marks the end of dissimilarity. The dots do specify the dissimilarity and similarity zones, BUT THAT'S NOT WHAT WE WATCH! {quote} So, we only watch the first difference point = pink dot. I take the high and low of that candle, that gives the high/low of the blue box. Starting point of the blue box is the green dot. And the blue...
Thanks ralome, a pic would be useful.

However, the logic according to Eurusdd is we get a dissimilarity ( marked correctly by the pink dot). Then we get similarity ( marked correctly with a green dot.)
At a point of similarity onwards, the logic is that we trade towards dissimilarity.
The dissimilarity can be many bars back, in fact even going off the chart.
Hence would it not be better to draw the blue zone from pink dot to green? That way on your chart you would have at the current moment all the dissimilarities highlighted that have not yet been taken out, (but will be at some point in the future - that is what you would be trading towards).

In the current indicator, the blue zones are marking points of similarity. So when you look at a chart, you do not see all previous points of dissimilarity that still exist. What will you trade towards, then?

Hope I have been able to explain myself.
Pardy
  • #1,644
  • Jul 13, 2013 7:37am Jul 13, 2013 7:37am
Quoting Ralome
{image}
seriously, is it possible to vouch for someone twice????
  • #1,645
  • Jul 13, 2013 7:42am Jul 13, 2013 7:42am
Quoting Pardy
{quote} Thanks ralome, a pic would be useful. However, the logic according to Eurusdd is we get a dissimilarity ( marked correctly by the pink dot). Then we get similarity ( marked correctly with a green dot.) At a point of similarity onwards, the logic is that we trade towards dissimilarity. The dissimilarity can be many bars back, in fact even going off the chart. Hence would it not be better to draw the blue zone from pink dot to green? That way on your chart you would have at the current moment all the dissimilarities highlighted that have not...
You don't need all that. Zone fade away with time. There is a way to estimate the number of bar for which a given zone is potent. Market players have many things to correct but sometimes they can't correct it all and so, after a period they will forget about it. I think I gave you a rough idea of how many bars to look out for!!!
  • #1,646
  • Jul 13, 2013 7:42am Jul 13, 2013 7:42am
Quoting Ralome
{image}
Your on fire!
  • #1,647
  • Jul 13, 2013 7:43am Jul 13, 2013 7:43am
The whole thing is a chess-game and you need serious algorithms to work out which zones to take out without creating too many new one far away from your target!
  • #1,648
  • Jul 13, 2013 7:45am Jul 13, 2013 7:45am
Quoting Pardy
{quote} Thanks ralome, a pic would be useful. However, the logic according to Eurusdd is we get a dissimilarity ( marked correctly by the pink dot). Then we get similarity ( marked correctly with a green dot.) At a point of similarity onwards, the logic is that we trade towards dissimilarity. The dissimilarity can be many bars back, in fact even going off the chart.
So far, correct.

Quoting Pardy
Hence would it not be better to draw the blue zone from pink dot to green?
That's a dissimilarity zone, but that's not what we watch!

Quoting Pardy
That way on your chart you would have at the current moment all the dissimilarities highlighted that have not yet been taken out, (but will be at some point in the future - that is what you would be trading towards).
That is exactly what the boxes show!!!

Quoting Pardy
In the current indicator, the blue zones are marking points of similarity.
That's totally wrong. If that was the case, there was a box between the second solid line and the first dashed line :-) But the picture should clear it.
Even if you fall on your face, you're still moving forward.
  • #1,649
  • Jul 13, 2013 7:46am Jul 13, 2013 7:46am
At every point in time, there will be zones to clear but price has to move CAREFULLY so that it does not create a new zone very far away from the one it is targeting. Furthermore, there will be a valid zone to clear at any given time, almost surely. Since most big guys look at higher time frames, zones there are HOT!!! Clearing them can also mean clearing those on lower time frames too.
  • #1,650
  • Jul 13, 2013 7:48am Jul 13, 2013 7:48am
Quoting Eurusdd
{quote} seriously, is it possible to vouch for someone twice????

I'm glad to be of help
Even if you fall on your face, you're still moving forward.
  • #1,651
  • Jul 13, 2013 7:51am Jul 13, 2013 7:51am
Hi - can I just step back a bit and ask what may well be a naïve question.

This complete strategy is built around one currency pair, because of certain attributes peculiar to that pair.

Thinking of cause/effect, and as trading in this style becomes more scientific, then the volumes traded based on it will exponentially increase. There is bound to be an impact that the market/pair will try to deal with?

One person trading (Eurusdd) could get away with it - if all ~70 traders reading this thread 'get it' (then tell their friends) and all start moving large volumes then the attributes within the pair that make it tradable, based on similarity, are bound to change.

Just musing......:-)
  • #1,652
  • Jul 13, 2013 7:53am Jul 13, 2013 7:53am
Ralome thanks for the indicator.

It clearly shows in M15 that 1.2928 area is the next blackhole.
Pivot Boss in the making~
  • #1,653
  • Jul 13, 2013 7:53am Jul 13, 2013 7:53am
Quoting Ralome
{image}
many thanks Ralome, that is a very helpful explanation...
  • #1,654
  • Jul 13, 2013 7:54am Jul 13, 2013 7:54am
Quoting stu
Hi - can I just step back a bit and ask what may well be a naïve question. This complete strategy is built around one currency pair, because of certain attributes peculiar to that pair. Thinking of cause/effect, and as trading in this style becomes more scientific, then the volumes traded based on it will exponentially increase. There is bound to be an impact that the market/pair will try to deal with? One person trading (Eurusdd) could get away with it - if all ~70 traders reading this thread 'get it' (then tell their friends) and all start moving...
tHAT IS THE REASON i DON'T LIKE TO SHARE TRADING SECRETS. But this one will stand strong for a long time because it is based on market dynamics and zones are not supposed to last forever. If price cannot take out a zone within the estimated time, it will try to spike there or focus on those that are easier to take out!
  • #1,655
  • Jul 13, 2013 7:56am Jul 13, 2013 7:56am
Quoting jurn_e
Ralome thanks for the indicator. It clearly shows in M15 that 1.2928 area is the next blackhole.
Nice, that is one of the reasons why people should be careful chasing eurusd up there!!!

Note that she has not created any new zone since the last major high.
  • #1,656
  • Jul 13, 2013 8:00am Jul 13, 2013 8:00am
Quoting Eurusdd
{quote} tHAT IS THE REASON i DON'T LIKE TO SHARE TRADING SECRETS. But this one will stand strong for a long time because it is based on market dynamics and zones are not supposed to last forever. If price cannot take out a zone within the estimated time, it will try to spike there or focus on those that are easier to take out!
So how do we stay up to date with a dynamic market? Getting new ratios?
  • #1,657
  • Jul 13, 2013 8:06am Jul 13, 2013 8:06am
Quoting Madmoney
{quote} So how do we stay up to date with a dynamic market? Getting new ratios?
nO: I gave the extreme number of days for a zone on the 15min chart: 75(2.5%). The mean is 15 and modes; 2, 4, 8, 6 and 1. The probability for the mean is very small(3.65%). So, most zones will be corrected within a week!!!

Presonally, I do ignore any zone that has been on the 15min for more that a week(extreme case; 2 weeks).
  • #1,658
  • Jul 13, 2013 8:11am Jul 13, 2013 8:11am
Quoting Eurusdd
{quote} nO: I gave the extreme number of days for a zone on the 15min chart: 75(2.5%). The mean is 15 and modes; 2, 4, 8, 6 and 1. The probability for the mean is very small(3.65%). So, most zones will be corrected within a week!!! Presonally, I do ignore any zone that has been on the 15min for more that a week(extreme case; 2 weeks).

Got it.
  • #1,659
  • Jul 13, 2013 8:12am Jul 13, 2013 8:12am
Quoting stu
Hi - can I just step back a bit and ask what may well be a naïve question. This complete strategy is built around one currency pair, because of certain attributes peculiar to that pair. Thinking of cause/effect, and as trading in this style becomes more scientific, then the volumes traded based on it will exponentially increase. There is bound to be an impact that the market/pair will try to deal with? One person trading (Eurusdd) could get away with it - if all ~70 traders reading this thread 'get it' (then tell their friends) and all start moving...
Stu, you, me and 5000 other small retail traders trade on these principles together, it won't form even a blip in the market.

reason 1: All our trades taken togethre are still miniscule in volume
reason 2: Chances are your/my broker will not send your orders in to the market but will deal it in-house
reason 3: You will not get filled often.
  • #1,660
  • Jul 13, 2013 8:14am Jul 13, 2013 8:14am
@eurousd

I'll try this similiarty in all pairs...
is that ok?
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