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The similarity system

  • #1,721
  • Jul 13, 2013 1:25pm Jul 13, 2013 1:25pm
The starting point we have, we would fail to determine the entry point, and even better if we know the points of inflexion. Although according to studies, the volume shows very little correlation with the prices, try to make your mode of operation. And also the stocastico study more, and thanks to EURUSDD, this indicator hides many things.
  • #1,722
  • Jul 13, 2013 1:29pm Jul 13, 2013 1:29pm
Quoting burnssss
The starting point we have, we would fail to determine the entry point, and even better if we know the points of inflexion. Although according to studies, the volume shows very little correlation with the prices, try to make your mode of operation. And also the stocastico study more, and thanks to EURUSDD, this indicator hides many things.

We don't need to worry about entry points anymore: You will understand what I means later!!!
  • #1,723
  • Jul 13, 2013 1:31pm Jul 13, 2013 1:31pm
Quoting Eurusdd
{quote} We don't need to worry about entry points anymore: You will understand what I means later!!!
Oh boy!
  • #1,724
  • Jul 13, 2013 1:35pm Jul 13, 2013 1:35pm
You amaze me more and more
  • #1,725
  • Jul 13, 2013 1:35pm Jul 13, 2013 1:35pm
Quoting burnssss
The starting point we have, we would fail to determine the entry point, and even better if we know the points of inflexion. Although according to studies, the volume shows very little correlation with the prices, try to make your mode of operation. And also the stocastico study more, and thanks to EURUSDD, this indicator hides many things.
Yes, volume and price have very little correlation, but combined with bar support and resistance, swing support and resistance, at breakouts and break in's with the MFI it is highly accurate.

MFI if used by someone who knows how to read it properly, can identify what the players are doing on any particular bar, or swing. It is very handy to me.
  • #1,726
  • Jul 13, 2013 1:38pm Jul 13, 2013 1:38pm
Quoting Eurusdd
{quote} We don't need to worry about entry points anymore: You will understand what I means later!!!
Looking forward to this..
  • #1,727
  • Jul 13, 2013 1:39pm Jul 13, 2013 1:39pm
Quoting Eurusdd
{quote} We don't need to worry about entry points anymore: You will understand what I means later!!!
alguna ayuda??
  • #1,728
  • Jul 13, 2013 1:41pm Jul 13, 2013 1:41pm
Quoting Baillie
{quote} Yes, volume and price have very little correlation, but combined with bar support and resistance, swing support and resistance, at breakouts and break in's with the MFI it is highly accurate. MFI if used by someone who knows how to read it properly, can identify what the players are doing on any particular bar, or swing. It is very handy to me.
thank you very much. I also find it very interesting the way you operate
  • #1,729
  • Jul 13, 2013 2:23pm Jul 13, 2013 2:23pm
My head is still spinning trying to take everything. Thanks for a great thread!

Would it make sense to add another instance of Ralome's indicator on the chart showing zones that are generated from a different time frame maybe using slightly different colors?
  • #1,730
  • Jul 13, 2013 2:45pm Jul 13, 2013 2:45pm
Theres no more nails in my hand, I can't wait until the next EURUSDD tip
"In God we trust."
  • #1,731
  • Jul 13, 2013 2:51pm Jul 13, 2013 2:51pm
Quoting Eurusdd
{quote} not in a major way: All the zones are fixed and gaps will most likely create a new zone! That is why most gaps are filled!!!!
Maybe your weekend strategy with that ?
  • #1,732
  • Jul 13, 2013 2:58pm Jul 13, 2013 2:58pm
Quoting Eurusdd
{quote} We don't need to worry about entry points anymore: You will understand what I means later!!!
I was thinking one could use hedging. So if we enter long to target the zone above, but price moves down, we could open a short hedge at any point of dd we are comfortable with, say 40 pips If price moves further down to say 60 or 80 or 100 pips, our net exposure will remain 40. Once price starts heading back in our direction, we lose the hedge. At what point we do this is your decision. But to make it mechanical, we could do it when we are 40 pips away - so our net exposure continues to be 40 pips max.

In fact, one could open trades long and short if your zones are above and below current price ( in this case within x no. of pips). Since 97% of time price will take the zones out, you would have built good equity, with maybe a few hanging trades with max d/d of 40 pips. Soon as you close in towards the zone targeted, lose the hedge.

Should work.
Pardy
  • #1,733
  • Jul 13, 2013 3:01pm Jul 13, 2013 3:01pm
Attached Image (click to enlarge)
Click to Enlarge Name: chart1.gif Size: 39 KB


Base just on the picture above and my own understanding which is "Price will try to correct dissimilarity by returning to it 97% of the time. It will do this by moving to the dissimilarity that is easiest to correct and that would usually be the nearest one to current price action". How I intend to get to the target zone would be to trade my way to it using the CI method. The blue circles are my signals to go short but as price does not move in a straight line a short right now will be faced with a very real risk of being stopped out before it hits my TP. Only way I can trade this is to use no stop at all which most of us can't afford to or just use simple stop management. Moving stop to BE, BE+1 +5 etc etc so that should an "attack" on the dissimilarity zone fail and reverses, my capital is protected. I will repeat this process when the next signal appears for a move to dissimilarity zone until such time price successfully corrects that dissimilarity.
I want more brain power!
  • #1,734
  • Jul 13, 2013 3:08pm Jul 13, 2013 3:08pm
Finally!! I have done reading the thread! Thanks to Eurusdd, MM and Ralome for all effort! Could it possible some 'push' notification function in added to the indicator? It will be best to get notified when a zone has been opened, so we wont stick to the screen.

On top of having a counter for the days, probably we can also add in function to end the zone when a number of days have elapsed. We get to 'set' the number of days.

Anyway it just some ideas, appreciate if it can be added! Thank you.
  • #1,735
  • Jul 13, 2013 3:12pm Jul 13, 2013 3:12pm
Quoting shiva
{quote} You worked hard at college? You will never be like Bill Gates. He dropped out
Means my chances are bright

All those who didn't went to college are successful now, Sachin, Amir, Billy etc etc hope soon you'll hear khallas (jeje) Kiddin
  • #1,736
  • Jul 13, 2013 3:34pm Jul 13, 2013 3:34pm
Quoting wilsonch
Finally!! I have done reading the thread! Thanks to Eurusdd, MM and Ralome for all effort! Could it possible some 'push' notification function in added to the indicator? It will be best to get notified when a zone has been opened, so we wont stick to the screen. On top of having a counter for the days, probably we can also add in function to end the zone when a number of days have elapsed. We get to 'set' the number of days. Anyway it just some ideas, appreciate if it can be added! Thank you.
That's some good ideas! Would be great to have those!
  • #1,737
  • Jul 13, 2013 3:38pm Jul 13, 2013 3:38pm
I mentioned the other day the light flickering in my head. Well it is now on. A few people kept mentioning studying the charts and that you will see. And sure enough it did. It just sort of clicked and I was like awww yeeaaa! I keep staring at the charts. I feel like a kid during Christmas waiting for the market to open back up.

Question on hedging though. Since I use a US broker I am not allowed to hedge. I do have two separate accounts though. Would going opposite directions on the accounts be a way to get around the no hedging regulation for me? (granted both accounts are funded well enough for that)
  • #1,738
  • Jul 13, 2013 3:58pm Jul 13, 2013 3:58pm
OMG.............its not that random after all........
I want more brain power!
  • #1,739
  • Jul 13, 2013 4:10pm Jul 13, 2013 4:10pm
Quoting cfdtaleong
OMG.............its not that random after all........
  • #1,740
  • Jul 13, 2013 7:38pm Jul 13, 2013 7:38pm
Is it actually predictable whether the market will take out a zone a day before it happens or at the start of the day?
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