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The similarity system

  • #2,481
  • Jul 16, 2013 4:10pm Jul 16, 2013 4:10pm
Quoting lastingwell
{quote} There are also other timeframes to take into account not just the 15m.
True!

So, we still don't know for sure where the price going.
  • #2,482
  • Jul 16, 2013 4:14pm Jul 16, 2013 4:14pm
If i change to 5M timeframe but keep the 15M display and set the StochDiff to 900 keeping the BBar to 24, I get the following.

The interesting thing about this: there is NO DIFF whilst price is consolidating upwards.
If anything, it created a large Zone above price, giving good reason for price to go UP.
(Note: as of current price, there is not much left until this zone is cleared... but there are no further zones in this timeframe)

Now... how to reconcile this to 15M and its settings?
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A pip is only worth it if you know how much you risked to earn it
  • #2,483
  • Jul 16, 2013 4:20pm Jul 16, 2013 4:20pm
Hi Folks !

I think this thing is getting a little bit confusing ;-)
It's a nice concept which has to be proofed in the longer term--

Happy trading

Bernhard
  • #2,484
  • Jul 16, 2013 4:20pm Jul 16, 2013 4:20pm
Quoting vlady1974
If i change to 5M timeframe but keep the 15M display and set the StochDiff to 900 keeping the BBar to 24, I get the following. The interesting thing about this: there is NO DIFF whilst price is consolidating upwards. If anything, it created a large Zone above price, giving good reason for price to go UP. (Note: as of current price, there is not much left until this zone is cleared... but there are no further zones in this timeframe) Now... how to reconcile this to 15M and its settings? {image}
This might be optimal setting for 5M.

The conversion into 15M : Stoch >> 300/1/1, ZZ and BB >> 8
  • #2,485
  • Jul 16, 2013 4:28pm Jul 16, 2013 4:28pm
Quoting MarsjeNL
{quote} I Agree too, this system feels more like Russian roulette at the moment
i am pretty sure, that it is a solid system,
just have to learn to use it first, understand it
something like that
  • #2,486
  • Jul 16, 2013 4:31pm Jul 16, 2013 4:31pm
Quoting ~bull.bear~
{quote} This might be optimal setting for 5M. The conversion into 15M : Stoch >> 300/1/1, ZZ and BB >> 8
Okay... that's gotten better on the 15M.... but what does 8 bollinger bands mean? It will look at the last 8 bars of 15M?
A pip is only worth it if you know how much you risked to earn it
  • #2,487
  • Jul 16, 2013 4:36pm Jul 16, 2013 4:36pm
Quoting vlady1974
{quote} Okay... that's gotten better on the 15M.... but what does 8 bollinger bands mean? It will look at the last 8 bars of 15M?
I think i should deserve voucher from you before answer the question. ....joking.
Yes, it is 8 bars. 8 x 15 min = 120 min. So 120 min /5 min TF = 24 in 5m
  • #2,488
  • Jul 16, 2013 4:41pm Jul 16, 2013 4:41pm
Quoting ~bull.bear~
{quote} I think i should deserve voucher from you before answer the question. ....joking. Yes, it is 8 bars. 8 x 15 min = 120 min. So 120 min /5 min TF = 24 in 5m
LOL... that sir. Is a Vouch. Now take a look at this: My shorts today were running blind based on an unconfirmed ZZ. This makes more sense!
Now maybe it's an indicator thing... but where Dissim starts, the ZigZag changes node. I was under the impression that ZZ changes when we get similarity and I've checked past posts to verify that just now. Also, it's interesting how zones almost act as support in this view.
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A pip is only worth it if you know how much you risked to earn it
  • #2,489
  • Jul 16, 2013 4:47pm Jul 16, 2013 4:47pm
crottsinabox - one of the oldest sayings in trading - "price will take the path of least resistance".
  • #2,490
  • Jul 16, 2013 4:52pm Jul 16, 2013 4:52pm
I don't understand your problem. I asked where price will be when the new zone comes in an someone said DOWN.
I gave a hint then with thumb down. So why are you complaining? I aslo said, don't sell too much till dis-similarity ends.
hmmm.
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  • #2,491
  • Jul 16, 2013 4:52pm Jul 16, 2013 4:52pm
Quoting vlady1974
{quote} LOL... that sir. Is a Vouch. Now take a look at this: My shorts today were running blind based on an unconfirmed ZZ. This makes more sense! {image}
Typo... . Thanks for the vouch!

Yes, it make more sense for you. Can i ask you something? If you set an indicator maybe stochastic to sensitive value, what will you see? Obviously you can see many occurrence of overbought and oversold case, but it is not valid/accurate for all the case. So IMO, some of the zone in the chart are not valid, but it is valid for the formation.

Add: For this case, since it is not the optimal setting. Its probability is less than 97%.
  • #2,492
  • Jul 16, 2013 5:07pm Jul 16, 2013 5:07pm
Looking back through posts I found this from EURUSDD
"The 15min template - modified version - is optimal for 4hr too. 92%"
so maybe we don't need to change the settings of stoch, bb and zz for other timeframes?
  • #2,493
  • Jul 16, 2013 5:11pm Jul 16, 2013 5:11pm
Eurusdd, when are you going on holiday?
Keep smiling
  • #2,494
  • Jul 16, 2013 5:11pm Jul 16, 2013 5:11pm
I'm going to go back to original 15min template and just change the TF after reviewing Post 420 Eurusdd
Quoting whoareyou (http://www.forexfactory.com/showthread.php?p=6798993#post6798993)
{quote} would it be correct to assume it would also work on every chart in between m15 and h4?
15min = 97%
4hr = 92%
30min = 90%
5min = 95%
1min= 84%
1hr = 86%
  • #2,495
  • Jul 16, 2013 5:16pm Jul 16, 2013 5:16pm
Quoting taypot
Looking back through posts I found this from EURUSDD "The 15min template - modified version - is optimal for 4hr too. 92%" so maybe we don't need to change the settings of stoch, bb and zz for other timeframes?
No. The optimal setting is 15m for the stoch, bb and zz. If you want to use other TF, you must convert the setting value from 15m to that TF. One of the post from EURUSDD had mentioned this, but i can't find where is it.
  • #2,496
  • Jul 16, 2013 5:18pm Jul 16, 2013 5:18pm
Hey guys, just a thought. Why don't you try and perfect this in one timeframe, learn the ropes so to speak, then start tinkering with other timeframes. Focus on how it works before trying to split the atom. Maybe the original 15min template Eurusd gave is a good place to ground yoursleves in. If it doesn't work for you there, then it won't work for you on any timeframe.

I put my hands up, I'm an habitual tinkerer too but I'm trying to be good, for now

Just a thought.

Daz.
Keep smiling
  • #2,497
  • Jul 16, 2013 5:24pm Jul 16, 2013 5:24pm
I think some of the traders here start to confuse themselves about which setting is valid, for the zone to stay valid. And some traders feel uncomfortable for why there are less zone, and some have many. I am personally not sure if your have applied the optimal setting, or due to across broker with correct setting. But what i do is i follow EURUSDD optimal setting, i don't bother about many or less zone, as long as it is valid for no more than 1 week, i would follow it. Unless the indicator is something wrong, couldn't draw the zone out the calculation. I think EURUSDD need to verify for this case if the indicator works well.

I think let not try to put or find other optimal setting in other TF, so not to confuse yourself and everyone. Instead stick to the optimal setting in 15m, it is fine. There will be more lessons from EURUSDD in future after his vacation.
Thanks.
  • #2,498
  • Jul 16, 2013 5:46pm Jul 16, 2013 5:46pm
optimal configurations were given by eurusdd to timeframes 1-5-15-30-1h.
therefore any variation of these parameters would suppose a variation of precision and an increase of the error.
But that does not mean it is not advisable to study the dis-similarities in other higher timeframes, as there may be additional information on higher timeframes.
  • #2,499
  • Jul 16, 2013 5:54pm Jul 16, 2013 5:54pm
1.30687 is the node maybe?
  • #2,500
  • Jul 16, 2013 6:25pm Jul 16, 2013 6:25pm
Quoting burnssss
1.30687 is the node maybe?
I have a manual box I have drawn down there, on a 15min

Good luck!

Night.
Keep smiling
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