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The similarity system

  • #1,661
  • Jul 13, 2013 8:14am Jul 13, 2013 8:14am
Quoting Eurusdd
{quote} 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!!!
maybe something for Ralome, do you think it make sence to implement a counter in the zone how long the zone still exist and when the time for this zone is over, so we could see it direct on the chart. Perhaps it is also possible that the zone will be delete itselfe when the time is over?

Just my thinking?
  • #1,662
  • Jul 13, 2013 8:16am Jul 13, 2013 8:16am
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).
thanks eur. You said you may be posting some pics this weekend on picking tops within 10 to 20 pips. Looking forward to that if you are able. Thanks in advance!
Life is too short to have anything but delusional notions about yourself.
  • #1,663
  • Jul 13, 2013 8:18am Jul 13, 2013 8:18am
Quoting ravenclaw
{quote} I'll try this in all pairs... is that ok?
I am specialized in EURUSD; sometimes AUDUSD.

The theory is good and so it should be adaptable .....
However, I have never tried that!
What you need is a stochastic process - market, price-process - that has certain fundamental properties. EURUSD for me has 8/10 of those properties and that is why I developed everything for EURUSD!
  • #1,664
  • Jul 13, 2013 8:19am Jul 13, 2013 8:19am
Quoting Forex Lion
{quote} maybe something for Ralome, do you think it make sence to implement a counter in the zone how long the zone still exist and when the time for this zone is over, so we could see it direct on the chart. Perhaps it is also possible that the zone will be delete itselfe when the time is over? Just my thinking?
tHAT will be GREAT! It will be perfect if there is a number attached to each zone telling us how long it has been in existence! Gee, that is some work!
  • #1,665
  • Jul 13, 2013 8:20am Jul 13, 2013 8:20am
Quoting ravenclaw
@eurousd I'll try this similiarty in all pairs... is that ok?
I suggest you observe how other pairs conform to this concept first before live trades
  • #1,666
  • Jul 13, 2013 8:20am Jul 13, 2013 8:20am
Quoting hoss
{quote} thanks eur. You said you may be posting some pics this weekend on picking tops within 10 to 20 pips. Looking forward to that if you are able. Thanks in advance!
Hello: I wanted to do that but Ralome's stuff took my attention and I also want to get all the facts right and present them well. When I am through I will post the idea here soon. It could be anytime.
  • #1,667
  • Jul 13, 2013 8:34am Jul 13, 2013 8:34am
Thanks Ralome,

Get it now. Brilliant piece of work!
  • #1,668
  • Jul 13, 2013 8:48am Jul 13, 2013 8:48am
Quoting Forex Lion
{quote} maybe something for Ralome, do you think it make sence to implement a counter in the zone how long the zone still exist and when the time for this zone is over, so we could see it direct on the chart. Perhaps it is also possible that the zone will be delete itselfe when the time is over? Just my thinking?
Woukd it be possile to change the color of the zones ?

- lessthan X days : the youngest one is red, the oldest one is blue
-after X days : all zones are grayed

It would help us to quickly visualize the hottest zones
  • #1,669
  • Jul 13, 2013 8:51am Jul 13, 2013 8:51am
Attached Image (click to enlarge)
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Pivot Boss in the making~
  • #1,670
  • Jul 13, 2013 8:53am Jul 13, 2013 8:53am
Quoting Eurusdd
{quote} Hello: I wanted to do that but Ralome's stuff took my attention and I also want to get all the facts right and present them well. When I am through I will post the idea here soon. It could be anytime.
Thanks, again. Great thread.
Life is too short to have anything but delusional notions about yourself.
  • #1,671
  • Jul 13, 2013 8:53am Jul 13, 2013 8:53am
Quoting Forex Lion
{quote} maybe something for Ralome, do you think it make sence to implement a counter in the zone how long the zone still exist and when the time for this zone is over, so we could see it direct on the chart. Perhaps it is also possible that the zone will be delete itselfe when the time is over? Just my thinking?
Would it be possile to change the color of the zones ?

- less than X days : the youngest one is red, the oldest one is blue
-after X days : all zones are grayed

It would help us to quickly visualize the hottest zones

But probaly a MTF colouring scheme would be the best. I am thinking of some kind of fraactal dissimilarity. But iam in the train now !
  • #1,672
  • Jul 13, 2013 8:55am Jul 13, 2013 8:55am
Great thread and thanks also to Ralome and the others who contribute so great in this discussion.


@Eurusdd: Im really impressed with what you got here and I lift my hat off to you for sharing some valuable information with us!

The similarity strategy seems great for pointing out the direction of the price until correction to the point of the first dissimilarity. And Ralomes indicator makes them easier to spot!
What I have to understand and learn next, is where to make the entries right.
For example when first similarity point after a dissimilarity appears, correction to dissimilarity does not go in the right direction at once. The price can go in the wrong direction for a while before correction, and I must learn where to make the entries.

Its really interesting to see how price almost always continues in the same direction when the dissimilarity appears.
Trade the dissimilarity, trade the correction!
  • #1,673
  • Edited 9:14am Jul 13, 2013 9:00am | Edited 9:14am
Quoting spufuz
Its really interesting to see how price almost always continues in the same direction when the dissimilarity appears.
That, my friend, is a very important observation. Ralome's indicator almost makes this so easy now!!!
  • #1,674
  • Jul 13, 2013 9:02am Jul 13, 2013 9:02am
Now, the reason why you can't always tell exactly where to enter is simple: price is finding the easiest or most significant zone to correct and so, sometimes the nearest one may not be the one in sight!!!

There is a way to analyze this but I want everyone to find their own stuff, just like you did ^^^^^.
  • #1,675
  • Jul 13, 2013 9:12am Jul 13, 2013 9:12am
Quoting Eurusdd
Now, the reason why you can't always tell exactly where to enter is simple: price is finding the easiest or most significant zone to correct and so, sometimes the nearest one may not be the one in sight!!! ...
Ok, so price might correct older zones before correcting the latest one, but not older zones than 75 days?
Or did I got that part wrong now?
  • #1,676
  • Jul 13, 2013 9:16am Jul 13, 2013 9:16am
Quoting spufuz
{quote} Ok, so price might correct older zones before correcting the latest one, but not older zones than 75 days? Or did I got that part wrong now?
You, see: most of us on this thread are watching the 15min chart: But there are other charts as well! So, at any given moment, price will try the look for the BEST MOVE!! Just like the way a computer chess-engine looks for the best move.........

The best move may be a zone that has been in existence for a while. By taking out that zone, price would have solve many other positions. So, your chart is a chess board!!!!

For your sake, try and stick to the MODES and the MEAN!!! Don't pay too much attention to zones that have been on your 15min chart for more than 2 weeks!
  • #1,677
  • Jul 13, 2013 9:17am Jul 13, 2013 9:17am
Another possible way to trade is to enter at either High/Low of Box and exit the other end of bluebox

Attached Image (click to enlarge)
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  • #1,678
  • Jul 13, 2013 9:28am Jul 13, 2013 9:28am
Quoting Eurusdd
{quote} You, see: most of us on this thread are watching the 15min chart: But there are other charts as well! So, at any given moment, price will try the look for the BEST MOVE!! Just like the way a computer chess-engine looks for the best move......... The best move may be a zone that has been in existence for a while. By taking out that zone, price would have solve many other positions. So, your chart is a chess board!!!! For your sake, try and stick to the MODES and the MEAN!!! Don't pay too much attention to zones that have been on your 15min...
Eur,

I know what median and modes mean, but what do they represent in this situation? The number of bars?
Life is too short to have anything but delusional notions about yourself.
  • #1,679
  • Jul 13, 2013 9:36am Jul 13, 2013 9:36am
Days!!! The mean for 15min is 15days - (2 weeks) with a low probability.
some of the modes are 2days, 1 day, 4 days etc. So, closure within a week is very possible. !!!
  • #1,680
  • Jul 13, 2013 9:37am Jul 13, 2013 9:37am
Quoting Eurusdd
{quote} You, see: most of us on this thread are watching the 15min chart: But there are other charts as well! So, at any given moment, price will try the look for the BEST MOVE!! Just like the way a computer chess-engine looks for the best move......... The best move may be a zone that has been in existence for a while. By taking out that zone, price would have solve many other positions. So, your chart is a chess board!!!! For your sake, try and stick to the MODES and the MEAN!!! Don't pay too much attention to zones that have been on your 15min...
Thanks for clearing that part up!

"The best move may be a zone that has been in existence for a while. By taking out that zone, price would have solve many other positions. So, your chart is a chess board!!!! "

- I guess that is what happened here at the chart below.
Prize went back to the zone in the red ring, but it also continued and corrected the zones in the blue rings.
Its just like the price wanted to get rid of those zones once and for all!


Attached Image (click to enlarge)
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