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The similarity system

  • #2,621
  • Jul 17, 2013 8:26am Jul 17, 2013 8:26am
Quoting Eurusdd
To be frank: Ralome's indicator does not show true dis-similarity but what I will call pseudo dis-similarity. I think we will have to modified the way the indicator identifies dis-similarities in the future. This is very important.. However, it is the best indicator we have so far.
Eurusdd - I've PMd you.
A pip is only worth it if you know how much you risked to earn it
  • #2,622
  • Jul 17, 2013 8:28am Jul 17, 2013 8:28am
Quoting Eurusdd
according to Ralome's indicator, most zones are allowed to grow. That means that price doesn't kill zones as soon at they start!!! Therefore, if you study the portion where a zone is expected to occur - relative to other zones, you can tell if price will be above/below that zone when it finally appears! Most zones act as support/resistance zones.
What is a zone made up of then? The HI/LO of the DS bar or the Open/Close?
A pip is only worth it if you know how much you risked to earn it
  • #2,623
  • Jul 17, 2013 8:29am Jul 17, 2013 8:29am
  •  Neio
  • Joined Oct 2012 | Status: Can't think outside?Enlarge the box | 688 Posts
Quoting Eurusdd
Most of you should not be trading correction of dis-similarities because l said this is for the big-boys. They have the patience and huge money to manage their trades. what you should do is :

??? Interested to know the answer to this!

My guess would be if we know at the start of dissimilarity where the price will end up at the end of the zone (above or below) then we can place trades based on that as we know the dissimilarity should not last that long.

For example if we know the price is going to end up BELOW the dissimilarity zone after the zone closes...then if the price moves above it before it closes then we know we can go short.

or

We need to learn to trade away from the dissimilarity.

An expert is a man who has made all the mistakes which can be made
  • #2,624
  • Jul 17, 2013 8:29am Jul 17, 2013 8:29am
Quoting Neio
{quote} Here you go... {image}
Thanks Neio. Well if that's a dis-similarity it's a very close call. Are we considering the fact the moving average just popped through the upper band and the Stoch just missed it a dis-similarity? Seems negligible to me.

Eurusdd, what's your view on the current difference? How big does the difference need to be to call it good? If you don't mind?
Keep smiling
  • #2,625
  • Jul 17, 2013 8:33am Jul 17, 2013 8:33am
Quoting vlady1974
{quote} What is a zone made up of then? The HI/LO of the DS bar or the Open/Close?
The high and low. That is why if you can hedge, there is a way to take every pips from this market. 1,2,3,4 --- 100 pips surely.
  • #2,626
  • Jul 17, 2013 8:35am Jul 17, 2013 8:35am
Quoting Neio
{quote} ??? Interested to know the answer to this! My guess would be if we know at the start of dissimilarity where the price will end up at the end of the zone (above or below) then we can place trades based on that as we know the dissimilarity should not last that long. For example if we know the price is going to end up BELOW the dissimilarity zone after the zone closes...then if the price moves above it before it closes then we know we can go short. or We need to learn to trade away from the dissimilarity.
That is the way I want us to go!!! Trading dis-similarity is for big boys or people who have patience.
  • #2,627
  • Jul 17, 2013 8:36am Jul 17, 2013 8:36am
Quoting Eurusdd
according to Ralome's indicator, most zones are allowed to grow. That means that price doesn't kill zones as soon at they start!!! Therefore, if you study the portion where a zone is expected to occur - relative to other zones, you can tell if price will be above/below that zone when it finally appears! Most zones act as support/resistance areas.
It has to go up to the top zone to clear it from below because it formed when PA was below. Doing that will achieve similarity fulfilling the condition for a trend change which when it happen the newest zone should paint.....putting price above it and allowing price a straight path down to clear all the zones below because those zones where painted when PA was above them thus price has to cut them from above.

:nerd::nerd:
I want more brain power!
  • #2,628
  • Jul 17, 2013 8:37am Jul 17, 2013 8:37am
Quoting Neio
{quote} ??? Interested to know the answer to this! My guess would be if we know at the start of dissimilarity where the price will end up at the end of the zone (above or below) then we can place trades based on that as we know the dissimilarity should not last that long. For example if we know the price is going to end up BELOW the dissimilarity zone after the zone closes...then if the price moves above it before it closes then we know we can go short. or We need to learn to trade away from the dissimilarity.
Wait a minute.... we have the answer before our eyes. It's the CLOSE

The stoch is based on price close.
The Dissimilarity, if we take Neio's chart, is basically the differences between the close.
The ZZ however, is based on either LOW or HI... so the price movement could basically be betweenLO and CLOSE OR HI and CLOSE.... where CLOSE is the closing price of the dissimilarity bar.

Er.... anyone get that? LOL
A pip is only worth it if you know how much you risked to earn it
  • #2,629
  • Jul 17, 2013 8:37am Jul 17, 2013 8:37am
  •  Neio
  • Joined Oct 2012 | Status: Can't think outside?Enlarge the box | 688 Posts
Quoting Eurusdd
{quote} That is the way I want us to go!!! Trading dis-similarity is for big boys or people who have patience.
Would hedging be the way to do it?
An expert is a man who has made all the mistakes which can be made
  • #2,630
  • Jul 17, 2013 8:39am Jul 17, 2013 8:39am
right now, we need to analyze what price does in relation to the high/low of the bar. I if she breaks high/low we can buy/sell and place a sell-stop/buy-stop somewhere inside the bar or at the high/low. I don't use stop-loss so I cannot help you .....
  • #2,631
  • Jul 17, 2013 8:40am Jul 17, 2013 8:40am
Quoting Neio
{quote} Would hedging be the way to do it?
THAT is the way I do it!!!
  • #2,632
  • Jul 17, 2013 8:40am Jul 17, 2013 8:40am
Quoting Eurusdd
{quote} The high and low. That is why if you can hedge, there is a way to take every pips from this market. 1,2,3,4 --- 100 pips surely.
You are changing lives my friend
  • #2,633
  • Jul 17, 2013 8:43am Jul 17, 2013 8:43am
Quoting Thoughts
{quote} You are changing lives my friend
People should not panic or rush this. Take your time and you will become good! I don't have time to wait long, so unless a dis-similarity zone is against the trend, I do not trade its correction.

I take sure pips by hedging positions (if necessary) relative to dis-similarity zones!!!
  • #2,634
  • Jul 17, 2013 8:44am Jul 17, 2013 8:44am
  •  Neio
  • Joined Oct 2012 | Status: Can't think outside?Enlarge the box | 688 Posts
Quoting Eurusdd
{quote} THAT is the way I do it!!!
But you don't have losses??? So do you close the trade manually at BE or profit once price moves a certain way?
An expert is a man who has made all the mistakes which can be made
  • #2,635
  • Jul 17, 2013 8:45am Jul 17, 2013 8:45am
The new zone we are expecting is based on a long-bar, so, price will give you a hint once it breaks the low/high.
  • #2,636
  • Jul 17, 2013 8:46am Jul 17, 2013 8:46am
Quoting Neio
{quote} But you don't have losses??? So do you close the trade manually at BE or profit once price moves a certain way?
my losses - if any - will be due to technical-issues or a way to divert broker's attention from my account or slippage!
  • #2,637
  • Jul 17, 2013 8:48am Jul 17, 2013 8:48am
So when price breaks the high of the dissimilar bar the pa will be above the new zone and vice versa??? My brain is kinda frozen fight now
I want more brain power!
  • #2,638
  • Jul 17, 2013 8:49am Jul 17, 2013 8:49am
I will leave you to decide that! later.
  • #2,639
  • Jul 17, 2013 8:49am Jul 17, 2013 8:49am
Quoting Eurusdd
The new zone we are expecting is based on a long-bar, so, price will give you a hint once it breaks the low/high.
So if price breaks 1.31285, that's a hint price's next move is down!
  • #2,640
  • Jul 17, 2013 8:50am Jul 17, 2013 8:50am
  •  Neio
  • Joined Oct 2012 | Status: Can't think outside?Enlarge the box | 688 Posts
Quoting Eurusdd
The new zone we are expecting is based on a long-bar, so, price will give you a hint once it breaks the low/high.
OK so in the case of this zone that is forming we know the following:

1. When the dissimilarity ends the price will be BELOW the zone.
2. There are unclosed dissimilarity zones BELOW.

so in the meantime if Price goes above the forming zone we should go Short with a target below the zone?
An expert is a man who has made all the mistakes which can be made
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