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The similarity system

  • #1,781
  • Jul 14, 2013 4:58am Jul 14, 2013 4:58am
Indicators rely on price but technical analysis is not useless. Most people just don't have the right theory to base their analysis on. That is one reason I started this thread. This should get the debate going! I believe that even though the price process is governed fundamentally by a stochastic process, there are ways to detect the "signature" of specific price-processes.

There is a top force directing affairs and markets respond to well-defined nodes even though the participants in the market may not know the effect of their actions!

Our job is not done yet: Trading this successfully will depend on your GREED AND MATURITY!!!
  • #1,782
  • Jul 14, 2013 5:04am Jul 14, 2013 5:04am
I will be called stupid for this, but I think the stochDiffZones graph is negatively correlated to price.
  • #1,783
  • Jul 14, 2013 5:11am Jul 14, 2013 5:11am
Quoting shiva
I will be called stupid for this, but I think the stochDiffZones graph is negatively correlated to price.
Can you explain further? Pictures? Thank you. Right now any idea about what to look for will be good!
Ralome made life so simple!
  • #1,784
  • Jul 14, 2013 5:15am Jul 14, 2013 5:15am
Quoting Eurusdd
{quote} Can you explain further? Pictures? Thank you. Right now any idea about what to look for will be good! Ralome made life so simple!
I meant to say price graph and stochdiff graph are mirror images of each other at times of dissimilarity. Like in EURUSD/USDCHF

Also another funny observation, most of the time price avoids travelling thru the marked zones. It wiggles through the gaps between the blocks like water finding openings to move

Attached Image (click to enlarge)
Click to Enlarge Name: price travels.PNG Size: 25 KB
  • #1,785
  • Jul 14, 2013 5:20am Jul 14, 2013 5:20am
By correlation i mean this. Notice the marked areas they have some sort of similarity in peaks and valleys. May be 70% correlation there.
Attached Image (click to enlarge)
Click to Enlarge Name: correlation.png Size: 32 KB
  • #1,786
  • Jul 14, 2013 5:26am Jul 14, 2013 5:26am
I am probably seeing things that don't exist and so will step away for a sip of the ancient herbal remedy - Coffee.
  • #1,787
  • Jul 14, 2013 5:30am Jul 14, 2013 5:30am
Quoting shiva
I am probably seeing things that don't exist and so will step away for a sip of the ancient herbal remedy - Coffee.
  • #1,788
  • Jul 14, 2013 5:43am Jul 14, 2013 5:43am
Quoting shiva
By correlation i mean this. Notice the marked areas they have some sort of similarity in peaks and valleys. May be 70% correlation there. {image}
Just my view. I think the indicator could add correlation function, so maybe when the negative correlation value rise up to -0.5, you can make the exit since price is reversing from top/bottom.
  • #1,789
  • Jul 14, 2013 6:01am Jul 14, 2013 6:01am
Mistakes by a majority of less skilled market participants can drive prices to incorrect levels creating opportunities for more skilled traders.
Pivot Boss in the making~
  • #1,790
  • Jul 14, 2013 6:28am Jul 14, 2013 6:28am
can someone help me on how to use stochdifzone indicator? will really appreciate if someone can guide me....
  • #1,791
  • Jul 14, 2013 6:50am Jul 14, 2013 6:50am
Quoting alij79
can someone help me on how to use stochdifzone indicator? will really appreciate if someone can guide me....
i suggest to read thread again
  • #1,792
  • Jul 14, 2013 7:00am Jul 14, 2013 7:00am
Quoting alij79
can someone help me on how to use stochdifzone indicator? will really appreciate if someone can guide me....
http://www.forexfactory.com/showthread.php?p=6817302#post6817302

http://www.forexfactory.com/showthread.php?p=6817313#post6817313


Look at these two for an indy explanation. As for having more zones at the same time, there are only guidelines, like "price will go the easiest way, it may even choose a zone which is not in sight". These are indeed scattered in the thread But the indy just identifies the zones, it's not about the entries.
Even if you fall on your face, you're still moving forward.
  • #1,793
  • Jul 14, 2013 7:12am Jul 14, 2013 7:12am
i cnt seem to set up this indi
  • #1,794
  • Jul 14, 2013 8:11am Jul 14, 2013 8:11am
Hi Ralome & Eurusdd !

As I understand your "system" there is a general tendency of price action to wipe out the "blue zones".
Therefore one can place orders right at the top or bottom of each box with take profit on the other side.
Combined with a good money management there is no doubt for me that tis thing could work quite well...

Happy trading

Bernhard
  • #1,795
  • Jul 14, 2013 8:25am Jul 14, 2013 8:25am
Hi Folks !

Attached you can find an example of EUR_JPY_15 Min chart with next target zone and trade parameters.

Regards

Bernhard
Attached Image (click to enlarge)
Click to Enlarge Name: Eur_JPY_15_Min.jpg Size: 112 KB
  • #1,796
  • Jul 14, 2013 8:39am Jul 14, 2013 8:39am
I've been comparing Ralome's indicator's signal with the stch/bollinger/ema indicators and i've seen no difference. The development of the stochdifzones has made his contribution on here invaluable. We're never going to have contrasting signals. When to trade toward the blackholes is another challenge and i hope we'll get this right. At least we have a bias. If the big boys are thinking sell, we have a tool to point us to that direction.

A big thank you to you, Ralome.
  • #1,797
  • Jul 14, 2013 8:48am Jul 14, 2013 8:48am
Quoting behof
Hi Folks ! Attached you can find an example of EUR_JPY_15 Min chart with next target zone and trade parameters. Regards Bernhard {image}
Good idea.

But remember....

Quoting Eurusdd
{quote} 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!
  • #1,798
  • Jul 14, 2013 9:13am Jul 14, 2013 9:13am
Hmm possible entry points to dissimilarity zones?
I want more brain power!
  • #1,799
  • Jul 14, 2013 9:15am Jul 14, 2013 9:15am
Quoting angelofx
I've been comparing Ralome's indicator's signal with the stch/bollinger/ema indicators and i've seen no difference. The development of the stochdifzones has made his contribution on here invaluable. We're never going to have contrasting signals. When to trade toward the blackholes is another challenge and i hope we'll get this right. At least we have a bias. If the big boys are thinking sell, we have a tool to point us to that direction. A big thank you to you, Ralome.
I don't understand you because Ralome's indicator is actually based on the stoch-bb-ema, so you are not supposed to see a difference.
  • #1,800
  • Jul 14, 2013 9:18am Jul 14, 2013 9:18am
Quoting Eurusdd
{quote} I don't understand you because Ralome's indicator is actually based on the stoch-bb-ema, so you are not supposed to see a difference.
I think thats what he meant sir
I want more brain power!
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