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The similarity system

  • #2,201
  • Jul 15, 2013 8:56pm Jul 15, 2013 8:56pm
Quoting Eurusdd
Have you guys realized the zones can also repel price, act as support/resistance zones?
Yes...I can now trade with purpose and manage trades properly. I have a short on E/U that got triggered prematurely but knowing how price will likely move and how far....I can manage it with a lot less emotion and more sensibility. Truly a chess game
I want more brain power!
  • #2,202
  • Jul 15, 2013 8:58pm Jul 15, 2013 8:58pm
@PipThiEF: What we are doing looks very simple but the indicator is based on a very-deep theory and I can assure you that it will stand the test of time! The settings we have will be valid for the next ten years. You do not need more than that to live comfortably from forex. All the best!!!!
  • #2,203
  • Jul 15, 2013 9:00pm Jul 15, 2013 9:00pm
Quoting cfdtaleong
{quote} Yes...I can now trade with purpose and manage trades properly. I have a short on E/U that got triggered prematurely but knowing how price will likely move and how far....I can manage it with a lot less emotion and more sensibility. Truly a chess game
That is the way I want people to approach the market. The price-process we are dealing with has all the characteristics of a financial chess-world!
  • #2,204
  • Jul 15, 2013 9:03pm Jul 15, 2013 9:03pm
I've been reading FF for years and have pretty much never posted. PA and moving averages can only get you so far. I wanted to know WHY the market moved.

So far, this is the only thread I have found that even begins to touch on this. I found this thread 2 days ago and have been kicking myself for not seeing this particular viewpoint on indicator divergence. This makes sense to me.

I have a question:

I understand the method, zone creation, etc. This most recent spike we are currently seeing (screenshot), is the size of the spike in any way related to the size of the move to come?
Attached Image (click to enlarge)
Click to Enlarge Name: eurusdmm15.png Size: 99 KB
  • #2,205
  • Jul 15, 2013 9:04pm Jul 15, 2013 9:04pm
If price would attempt to take out zones without creating new ones in the process, would it then be accurate to say that those zones that are within the price range of the current stochastic are more likely to be taken first? I would think so, because if the price moves over or under the range then is much more likely to create new zones. Any insights?
Please pull my head out of my ass, I am running out of oxygen...
  • #2,206
  • Jul 15, 2013 9:14pm Jul 15, 2013 9:14pm
Quoting PiPtHiEf
If price would attempt to take out zones without creating new ones in the process, would it then be accurate to say that those zones that are within the price range of the current stochastic are more likely to be taken first? I would think so, because if the price moves over or under the range then is much more likely to create new zones. Any insights?
Good: There will be a zone to correct/take-out every time, with probability close to 97%. What I mean here is that, if price creates too many new zones beneath the current one in its attempt to take the top-zone out, , it will end up trapping itself and will stall or spike!!!

Right now, it has already created a new zone at 1.30283.

I will explain this in detail at the right time and you will never look at forex-trading the same again. In fact, you will never look at EURUSD the same way again!
  • #2,207
  • Jul 15, 2013 9:16pm Jul 15, 2013 9:16pm
Quoting FXWrangler
I've been reading FF for years and have pretty much never posted. PA and moving averages can only get you so far. I wanted to know WHY the market moved. So far, this is the only thread I have found that even begins to touch on this. I found this thread 2 days ago and have been kicking myself for not seeing this particular viewpoint on indicator divergence. This makes sense to me. I have a question: I understand the method, zone creation, etc. This most recent spike we are currently seeing (screenshot), is the size of the spike in any way related...
Hi there. Are you referring to the spike in the bottom window?
  • #2,208
  • Jul 15, 2013 9:18pm Jul 15, 2013 9:18pm
Yes. This is the largest I can find in my usable history. The price move itself is not outsized but the stoch diff indicator is off the chart.
  • #2,209
  • Jul 15, 2013 9:21pm Jul 15, 2013 9:21pm
If yes, then the answer is no. A spike like that is a sign that when this move happens, all energies in that direction will be exhausted. We are heading into a possible MAXIMUM!!!

There is a great chance to PICK A TOP here!!! Zone will be taken-out at 1.30788.
  • #2,210
  • Jul 15, 2013 9:26pm Jul 15, 2013 9:26pm
My posts are being moderated since I am a newly registered member so there is a delay from when I actually post them. I believe that restriction will be lifted at some point.

If the amplitude of the difference is not important then does that also apply to the time length of the divergence?

I recall from your earlier posts that once the divergence is complete then the longer price stays away from it the sharper the move back but does that concept apply at all to the duration of the divergence itself?
  • #2,211
  • Jul 15, 2013 10:08pm Jul 15, 2013 10:08pm
Quoting Misterdaz
......I could be wrong, I've been wrong before, according to my wife anyway.
Misterdaz.......Seem to recall that name...Skunny?? What a surprise seeing you here. You guys had a lot of fun on that thread!!
  • #2,212
  • Jul 15, 2013 11:01pm Jul 15, 2013 11:01pm
I'm curious whether USDCHF might also offer some insight into where EURUSD is heading, since they are almost mirror images of each other. I think the indicator is geared mainly for the EU.
  • #2,213
  • Jul 15, 2013 11:17pm Jul 15, 2013 11:17pm
Quoting Jeysun
I'm curious whether USDCHF might also offer some insight into where EURUSD is heading, since they are almost mirror images of each other. I think the indicator is geared mainly for the EU.
Every stochastic process similar to the ones that govern the prices of currency-pairs have what we called a fractal-coefficient. If the coefficient is close to 1 (ie 0.8 -1), then we can find optimal settings for the process and apply this method.

if you use the wrong settings, you may have many zones that will never be taken-out. eurusd has a very high co-efficient, 0.87.

usdchf has 0.82. So, you cannot directly apply the settings for eurusd to usdchf.
  • #2,214
  • Jul 15, 2013 11:26pm Jul 15, 2013 11:26pm
Hi to all,

may somebody post Eurusdd (http://www.forexfactory.com/eurusdd)'s template, I can't find it, thanks a lot :-)
  • #2,215
  • Jul 15, 2013 11:27pm Jul 15, 2013 11:27pm
Quoting Eurusdd
{quote} Every stochastic process similar to the ones that govern the prices of currency-pairs have what we called a fractal-coefficient. If the coefficient is close to 1 (ie 0.8 -1), then we can find optimal settings for the process and apply this method. if you use the wrong settings, you may have many zones that will never be taken-out. eurusd has a very high co-efficient, 0.87. usdchf has 0.82. So, you cannot directly apply the settings for eurusd to usdchf.
a difference of 0.5 is significant? And I am going to hanged for saying this but now that what you shared with us is out in the open although only part of you system, would not the market markets be able to make some kind of counter move against us?
I want more brain power!
  • #2,216
  • Jul 15, 2013 11:37pm Jul 15, 2013 11:37pm
Quoting cfdtaleong
{quote} a difference of 0.5 is significant? And I am going to hanged for saying this but now that what you shared with us is out in the open although only part of you system, would not the market markets be able to make some kind of counter move against us?
When you play chess against your computer, I am sure there are many possible moves the computer can make against you. However, it will choose from the best possible moves.
If you do your analysis well you will be able to know what the computer will do, most likely.
sAME THING HERE. The terrain is fixed and all must play by the rules!

The banks beat you in the past because you didn't know the slopes!!
  • #2,217
  • Jul 15, 2013 11:51pm Jul 15, 2013 11:51pm
I will keep quiet now and just allow you guys to test it for yourselves! Maybe three months, four months ....?
  • #2,218
  • Jul 16, 2013 12:29am Jul 16, 2013 12:29am
  •  Neio
  • Joined Oct 2012 | Status: Can't think outside?Enlarge the box | 688 Posts
Looks like EU has finally taken out that zone!
An expert is a man who has made all the mistakes which can be made
  • #2,219
  • Jul 16, 2013 12:30am Jul 16, 2013 12:30am
job is done...taken
  • #2,220
  • Jul 16, 2013 12:42am Jul 16, 2013 12:42am
  •  Neio
  • Joined Oct 2012 | Status: Can't think outside?Enlarge the box | 688 Posts
The only zones are below now. Unless someone is seeing something different with their broker!!!

Surely it does not want to go up now and risk creating more zones without taking out the ones below first.
An expert is a man who has made all the mistakes which can be made
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