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The similarity system

  • #1,681
  • Jul 13, 2013 9:40am Jul 13, 2013 9:40am
Quoting spufuz
{quote} 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! {image}
EXACTLY: DO YOU SEE WHERE SHE STOPPED??? and started reversing. The JOB WAS DONE!!!
  • #1,682
  • Jul 13, 2013 9:58am Jul 13, 2013 9:58am
Eurusdd, does the size of the zone carry any importance? In this example of the EURUSD 15m zoomed out, the difference zones below are much larger.

Ralome thank you for the great indicator!
Attached Image
  • #1,683
  • Jul 13, 2013 10:11am Jul 13, 2013 10:11am
I am wondering, if someone could help for the right setup in different timeframes.

If I want to watch the sim/dis-sim in different timeframes to find the bigger and smaller picture of my chessfield, how do I have to set-up the stoch, bb and the stochdifzones indicator.

For the 15 min it should look like this?:

bb within main chart: 24
stoch: 300/1/1
bb within stoch indicator window: 24
stochdifzones: 300/24

what I have to change for example 1 hour, 5 M or 1M timeframe?

Maybe the cherry on top would be, if there is a possibility to show different tf-zones in one tf (the tf I will watch for entry, eg. within the 15M tf?

Many thanks for your assistance and sorry for this possible dump question, but I am not used to work a lot with indicators.

Best regards,
Peter
  • #1,684
  • Jul 13, 2013 10:13am Jul 13, 2013 10:13am
Quoting faze
Eurusdd, does the size of the zone carry any importance? In this example of the EURUSD 15m zoomed out, the difference zones below are much larger. Ralome thank you for the great indicator! {image}
that's exactly the way my chart looks like with the two upper zones...
  • #1,685
  • Jul 13, 2013 10:19am Jul 13, 2013 10:19am
Quoting Forex Lion
I am wondering, if someone could help for the right setup in different timeframes. If I want to watch the sim/dis-sim in different timeframes to find the bigger and smaller picture of my chessfield, how do I have to set-up the stoch, bb and the stochdifzones indicator. For the 15 min it should look like this?: bb within main chart: 24 stoch: 300/1/1 bb within stoch indicator window: 24 stochdifzones: 300/24 what I have to change for example 1 hour, 5 M or 1M timeframe? Maybe the cherry on top would be, if there is a possibility to show different...
Quoting Madmoney
For example 5M would be close to 100x8? 1M would be close to 20x2 (1.6)?
Along the lines...

Quoting Eurusdd
{quote} EXACTLY!!!! Under normal circumstances most zones will confirm the ones on the 15min chart but you will get others in between and that expands your view into the banking world! Experiment and you will be surprised at what you will see!
  • #1,686
  • Jul 13, 2013 10:34am Jul 13, 2013 10:34am
Quoting Madmoney
{quote} {quote} Along the lines... {quote}
many thanks MM, I read this, but I am not sure what I have to do exactly. maybe a examaple for the M5 TF:

bb within main chart: 24 ? or do I have to change it to 8
stoch: 300/1/1 ? or do I have to change it to 100/1/1, or 900/1/1
bb within stoch indicator window: 24 ? or do I have to change it to 8
stochdifzones: 100/8 ? thats what you mentioned above



Many thanks for your help...
  • #1,687
  • Jul 13, 2013 10:40am Jul 13, 2013 10:40am
Quoting Forex Lion
{quote} many thanks MM, I read this, but I am not sure what I have to do exactly. maybe a examaple for the M5 TF: bb within main chart: 24 ? or do I have to change it to 8 stoch: 300/1/1 ? or do I have to change it to 100/1/1, or 900/1/1 bb within stoch indicator window: 24 ? or do I have to change it to 8 stochdifzones: 100/8 ? thats what you mentioned above Many thanks for your help...
Quoting Eurusdd
But since Ralome's indicator is adaptable, you can experiment with different settings on the smaller time frames. Or convert the 15 min to your smaller time frame using the ratio-principle: not the way to go, but that is where to start.
Stoch period and bb period are to be adapted. Experiment with the dis-sim zones hopefully you'll see something.
  • #1,688
  • Jul 13, 2013 11:10am Jul 13, 2013 11:10am
Quoting Forex Lion
{quote} many thanks MM, I read this, but I am not sure what I have to do exactly. maybe a examaple for the M5 TF: bb within main chart: 24 ? or do I have to change it to 8 stoch: 300/1/1 ? or do I have to change it to 100/1/1, or 900/1/1 bb within stoch indicator window: 24 ? or do I have to change it to 8 stochdifzones: 100/8 ? thats what you mentioned above Many thanks for your help...
Refer to post 1591. The setting is matching the optimal setting of 15m. But for BB setting, try to see the chart and set yourself.
  • #1,689
  • Jul 13, 2013 11:22am Jul 13, 2013 11:22am
Quoting Madmoney
{quote} {quote} Stoch period and bb period are to be adapted. Experiment with the dis-sim zones hopefully you'll see something.
I will do some experimenting on it , many thanks
  • #1,690
  • Jul 13, 2013 11:23am Jul 13, 2013 11:23am
Quoting ~bull.bear~
{quote} Refer to post 1591. The setting is matching the optimal setting of 15m. But for BB setting, try to see the chart and set yourself.
I will do some experimenting on it , many thanks
  • #1,691
  • Edited 11:47am Jul 13, 2013 11:23am | Edited 11:47am
I did some little research and its it pingpongs between the dissimilarity's spanned on different timeframes.

I also found out that 'spikes' just reach out to fix dissimilarities.

Right now I'm thinking a lot and it seems that it's really a game, everything seems more determined now
for me, or maybe it's because I want to see it that way, but I feel pretty confident about it.
Every cent earned is one step closer to independence
  • #1,692
  • Jul 13, 2013 11:40am Jul 13, 2013 11:40am
Hi

thanks for the indicator. Have you or anyone tested it in live. Is is draw the disappered spikes accurate?
Why I am asking because on Friday I used the original cycle indicator and before the market close I had a spike up and I can not see it in this histo version.(no spike no dot)
thanks for the answer and the amazing topic Eurusdd.

Quoting Gvc
Great thread EURUSDD...... Here is the CI indicator with history. It marks repainting spikes with dots and has an Alert function. {image} {file}
  • #1,693
  • Jul 13, 2013 11:55am Jul 13, 2013 11:55am
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...
Thank you for the detailed explanation. I'm have to apologize to this thread that my ability to process all the information shared is rather slow and often I keep asking questions and some repeated ones at that. I also try to rephrase what is taught in my own words which may not benefit a lot of people but it is the only way I can be sure that I understand what I read correctly. I thank everyone for their understanding and patience on this matter.

Base on the picture you provided and just assuming no other zones exists less the SECOND one, the trade process should be go along the lines of :

1)1st dissimilarity candle (pink dot) is captured by your indicator.
2)When the the dissimilarity finally ends (green dot) your indicator will start painting the zones base on the data captured until it gets corrected
3)This zone signals 2 things...
a)It marks out the target we expect price to return to and
b)The moment it paints is the moment where we can start planning our entries for that return I mentioned

Issues I notice base on the assumption above is that:

1)If I entered a short the moment the zone paints in expectation of that return I would have been easily stopped out before target get hit.
2)If I did the exact same thing but with a stop I may not have the equity to withstand that move.

These issues are however something is beyond the scope and purpose of your indicator. Finding a proper entry would be separate issue. This I assume is how your indicator should be used and read?

Thank you very much for your time and patience
I want more brain power!
  • #1,694
  • Jul 13, 2013 12:03pm Jul 13, 2013 12:03pm
Quoting cfdtaleong
{quote} Thank you for the detailed explanation. I'm have to apologize to this thread that my ability to process all the information shared is rather slow and often I keep asking questions and some repeated ones at that.
Don't worry, if there's something to be cleared up, it'll be cleared up.

As for entries, yes, you are right, that is a separate issue :-)
Even if you fall on your face, you're still moving forward.
  • #1,695
  • Jul 13, 2013 12:09pm Jul 13, 2013 12:09pm
Quoting Ralome
{quote} Don't worry, if there's something to be cleared up, it'll be cleared up. As for entries, yes, you are right, that is a separate issue :-)
Ah...so I'm reading and understanding your indicator correctly then?
I want more brain power!
  • #1,696
  • Jul 13, 2013 12:10pm Jul 13, 2013 12:10pm
I am closed to giving you a perfect way to trade this stuff and I have "laughing-tears" in my eyes!!!
I am doing some serious tests on the strategy right now and if it passes the test, we will have the youngest sister of the "holy-grail" everyone has been looking for. This one does not need the zone to be corrected! BUT YOU MUST BE ABLE TO HEDGE!!!!

AND you must be able to use Ralome's indicator correctly! That is all!
  • #1,697
  • Jul 13, 2013 12:14pm Jul 13, 2013 12:14pm
I have not studied so hard since college
I want more brain power!
  • #1,698
  • Jul 13, 2013 12:15pm Jul 13, 2013 12:15pm
Quoting cfdtaleong
I have not studied so hard since college
  • #1,699
  • Jul 13, 2013 12:17pm Jul 13, 2013 12:17pm
Quoting Eurusdd
I am closed to giving you a perfect way to trade this stuff and I have "laughing-tears" in my eyes!!! I am doing some serious tests on the strategy right now and if it passes the test, we will have the youngest sister of the "holy-grail" everyone has been looking for. This one does not need the zone to be corrected! BUT YOU MUST BE ABLE TO HEDGE!!!! AND you must be able to use Ralome's indicator correctly! That is all!
I just caught up on reading the thread since yesterday, and this was the last thing I read..I'm not even going to try to explain whats going on in my mind right now..
  • #1,700
  • Jul 13, 2013 12:19pm Jul 13, 2013 12:19pm
Quoting Eurusdd
I am closed to giving you a perfect way to trade this stuff and I have "laughing-tears" in my eyes!!! I am doing some serious tests on the strategy right now and if it passes the test, we will have the youngest sister of the "holy-grail" everyone has been looking for. This one does not need the zone to be corrected! BUT YOU MUST BE ABLE TO HEDGE!!!! AND you must be able to use Ralome's indicator correctly! That is all!
Anxiously waiting since Friday night for this. Thumbs up to EURUSDD and Ralome. Love u guys ~
Pivot Boss in the making~
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