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The similarity system

  • #1,861
  • Jul 14, 2013 11:43pm Jul 14, 2013 11:43pm
Morning,

this is my current status, looks like a new zone has been established...
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  • #1,862
  • Jul 14, 2013 11:46pm Jul 14, 2013 11:46pm
Quoting paws
{quote} 1st - great and profuse thanks to eurusdd, madmoney, ralome, etc for sharing their insights and wisdom with us - absolutely fantastic! myichimoku, I think if you will focus on each 5M blip (bottom cycle identifier row) , Madmoney's buy/sell signals are where there is the 1st (and only 1st) missing 5M blip (dis sim) after that. He is wanting to be careful to take signals in the direction of the 5M. "The main trend is the bottom cycle identifier, my rule is 'I will not trade against it'. I will only take DIS-SIMILARITY trades...
Thanks bro. I noticed that after I continue read page 50 onward. Now I fully understand how it works.
  • #1,863
  • Jul 15, 2013 12:11am Jul 15, 2013 12:11am
Quoting Forex Lion
Morning, this is my current status, looks like a new zone has been established... {image}

I see the same zone. price just broke the top of the box, so if it moves down it will correct that zone and head towards 2 more zones below. I also notice a zone above but it is older than 2 weeks so according to Eurusdd the probability of the zone above is less than those below.

Of course this is all on the 15min frame. I haven't had a chance to set Ralome's indi up on a larger time frame like the 1H or 4H just yet
  • #1,864
  • Jul 15, 2013 12:19am Jul 15, 2013 12:19am
Quoting crottsinabox
{quote} I see the same zone. price just broke the top of the box, so if it moves down it will correct that zone and head towards 2 more zones below. I also notice a zone above but it is older than 2 weeks so according to Eurusdd the probability of the zone above is less than those below. Of course this is all on the 15min frame. I haven't had a chance to set Ralome's indi up on a larger time frame like the 1H or 4H just yet
yes, I also have a older zone above, and I am trying to set up the indi for larger time frames as well to get the bigger picture...
  • #1,865
  • Jul 15, 2013 12:36am Jul 15, 2013 12:36am
Hi everyone. Just wanted to make clear to everyone that the way MadMoney is using the CI indicator is NOT similarity.

He probably uses it for entry towards dis-similarity (according to BB/stoch). On MadMoney's 1m chart, the CI's are DIFFERENT, the 1 is calculated with X bars and the other by 5X, so the spikes are formed in a shorter trend in the one CI (X setting), and the spikes are being formed in a longer trend on the other CI (5X settings).

This is not what Eurusdd showed in the first page of the thread. Eurusdd CI's on the first page are the SAME, ie 5X on 1 min and X on 5min: The CI's are the same, 1min CI is calculated by 5 times the bars that the 5min CI is calculated with, so they are the same CI's and when they do not agree u have dis-sim and should be looking for a trade.

Thanks for all the info Eurusdd!!
Cheers
  • #1,866
  • Jul 15, 2013 12:40am Jul 15, 2013 12:40am
this is very true, i just found out same thing today. but it is profitable, so it is a gem along the road, i guess.

Quoting lappies
Hi everyone. Just wanted to make clear to everyone that the way MadMoney is using the CI indicator is NOT similarity. He probably uses it for entry towards dis-similarity (according to BB/stoch).
  • #1,867
  • Jul 15, 2013 12:49am Jul 15, 2013 12:49am
Quoting myichimoku
{quote} Thanks bro. I noticed that after I continue read page 50 onward. Now I fully understand how it works.
I experienced this too
The first 50 pages was struggle
Thanks for MadMoney 'the translator'

Those who's looking for quick fix ... they give up this thread, easily
i worshipped... Momentum
  • #1,868
  • Jul 15, 2013 1:12am Jul 15, 2013 1:12am
Quoting lappies
Hi everyone. Just wanted to make clear to everyone that the way MadMoney is using the CI indicator is NOT similarity. He probably uses it for entry towards dis-similarity (according to BB/stoch). On MadMoney's 1m chart, the CI's are DIFFERENT, the 1 is calculated with X bars and the other by 5X, so the spikes are formed in a shorter trend in the one CI (X setting), and the spikes are being formed in a longer trend on the other CI (5X settings). This is not what Eurusdd showed in the first page of the thread. Eurusdd CI's on the first page are the...


You should read more careful before you make the post, you are wrong
Never say no to PIPS
  • #1,869
  • Jul 15, 2013 2:45am Jul 15, 2013 2:45am
If you zoom right out on E/U M15 you can see that there are more zones above from 20/21 June, 17 trading days ago.


So it could take those out first but having read there is a 97% chance of taking out a zone within 75 days, mean 15 days, modes 1,2,4,6,8, anything older than 2 weeks is considered dead, I assume we can forget about the ones above around 3231-3404?
Attached Image (click to enlarge)
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  • #1,870
  • Jul 15, 2013 2:56am Jul 15, 2013 2:56am
Quoting Eurusdd
Have fun and keep experimenting!!!!

I kept experimenting (also thinking) and want to ask a question. Let me show a chart.
Attached Image (click to enlarge)
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Not really surprising, if you think how the Stochastic works, but the start of a dissimilarity zone is always perfectly lined-up with a change of the range of the last N bars. However, there are two ways for this range to change:
1. By dropping a range-defining bar due to moving more than N period away from it (these are the first two vertical lines).
2. By a price push out of the range.

Since we're looking at anomalies in the market, it is my gut feeling that we would be interested mainly at dissimilarities caused by "2". I'd like to know your opinion on the matter, though. Am I on the right track?
A rough estimation below (just an estimation, note the blue rectangle - there should be a zone starting there).
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  • #1,871
  • Jul 15, 2013 3:01am Jul 15, 2013 3:01am
Quoting Eurusdd
DON'T CHASE PRICE: Let price come to you!!!! Price is like people/girls dON'T CHASE A GIRL, get money - results, change yourself and SHE WILL COME TO YOU!!! If you chase price down/up, she will turn around and leave you HANGING!!! ---- Draw your line in the sand and stand your ground: She will get tired and run to you!!!
Morning everyone, I can see the thread has be moving very fast!!

One of my fav quotes from Eurusdd is above!

happy trading guy...
  • #1,872
  • Jul 15, 2013 3:38am Jul 15, 2013 3:38am
Guys! Dis start! I m short now. Not expect Monday would have too much range.

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  • #1,873
  • Jul 15, 2013 3:38am Jul 15, 2013 3:38am
Blackhole sucking EU
Pivot Boss in the making~
  • #1,874
  • Jul 15, 2013 3:38am Jul 15, 2013 3:38am
I'm targeting 1.29711 ...lets see
  • #1,875
  • Jul 15, 2013 3:41am Jul 15, 2013 3:41am
Quoting jurn_e
Blackhole sucking EU
Wow we posted at the same time ...similarity >>>
  • #1,876
  • Jul 15, 2013 3:43am Jul 15, 2013 3:43am
  •  Neio
  • Joined Oct 2012 | Status: Can't think outside?Enlarge the box | 688 Posts
Been away for the weekend. Just catching-up with this fantastic thread! Really like the way this is developing. Big thanks to Ralome for his work on the indicator. I am finding it really useful. Would love to be able to programme like that myself so that I could contribute something.

Also many thanks again for Eurusdd for the insights. Will continue to demo trade for now but hope to setup a live account next month with explorer.

Neio
An expert is a man who has made all the mistakes which can be made
  • #1,877
  • Jul 15, 2013 3:48am Jul 15, 2013 3:48am
targeting 95690 on Chf....lets see
  • #1,878
  • Jul 15, 2013 3:54am Jul 15, 2013 3:54am
  •  Neio
  • Joined Oct 2012 | Status: Can't think outside?Enlarge the box | 688 Posts
Quoting ptla
targeting 95690 on Chf....lets see
Looks like a good call on that (usd/chf). But we have to be cautious as Eurusdd states that the settings we currently have are optimised for EU. Not to say that it won't work on other pairs especially as they appear to be correlated.

Personally, I am watching a few different pairs to see how this plays out over the next couple of weeks.
An expert is a man who has made all the mistakes which can be made
  • #1,879
  • Jul 15, 2013 4:02am Jul 15, 2013 4:02am
Quoting Neio
Been away for the weekend. Just catching-up with this fantastic thread! Really like the way this is developing. Big thanks to Ralome for his work on the indicator. I am finding it really useful. Would love to be able to programme like that myself so that I could contribute something. Also many thanks again for Eurusdd for the insights. Will continue to demo trade for now but hope to setup a live account next month with explorer. Neio
Why not going live with 0.01 ? As far as i can see your green "Pre-go-live" is going to shoot the stars...
  • #1,880
  • Jul 15, 2013 4:07am Jul 15, 2013 4:07am
  •  Neio
  • Joined Oct 2012 | Status: Can't think outside?Enlarge the box | 688 Posts
Quoting IFxRobot
{quote} Why not going live with 0.01 ? As far as i can see your green "Pre-go-live" is going to shoot the stars...
Good point. But I prefer to trade demo with amounts similar to what I will be trading live then trade micro amounts as personally I feel psychologically it is closer to trading REAL. I feel similar emotions as if I was experiencing drawdown on REAL money.
An expert is a man who has made all the mistakes which can be made
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