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The similarity system

  • #2,701
  • Jul 17, 2013 11:13am Jul 17, 2013 11:13am
So time for me to jump in too.
First of all, big thanks to Eurusdd for showing us this amazing stuff. Also thanks to all the people who help here to understand this idea of trading a little bit better cause it's really hard to understand (for me...yet) and to put all the things together in a right way.

At the moment I'm a little bit confused and I think I lost the red plot.

A big question for me is what should tell us those blue zones during the similarity????

Perhaps somebody who knows can help me........
  • #2,702
  • Jul 17, 2013 11:15am Jul 17, 2013 11:15am
Quoting Eurusdd
{quote} Until dis-similarity ends and the zone above appears, we should "buy" with care!!! This is just like the warning i gave yesterday on selling!!!
I hear ya. I've decided that the breakout will decide my bias. So in this case, we broke out of the the unborn Zone to the south side so I am biased short. ie. Short entries only. Any counter-trend moves are opportunities.... ordinarily, I would trade them but to keep my head clear I will only trade in the direction of the 15M trend as determined by the "DS Zone Breakout".

Suggestion.... instead of me typing all that out, anyone want to create a name for this so we can just name it and we'd all know what it means?
A pip is only worth it if you know how much you risked to earn it
  • #2,703
  • Jul 17, 2013 11:15am Jul 17, 2013 11:15am
Quoting Eurusdd
I think we are going below 1.29945. The new zone we are expecting has a lot of weight. Price will take a zigzag path down there.

So i think i will get huge profit :
Attached Image (click to enlarge)
Click to Enlarge Name: Snap 2013-07-17 _ 18-13.png Size: 84 KB
My name is Martin... Martin Gale
  • #2,704
  • Jul 17, 2013 11:16am Jul 17, 2013 11:16am
Quoting mattkirby
So time for me to jump in too. First of all, big thanks to Eurusdd for showing us this amazing stuff. Also thanks to all the people who help here to understand this idea of trading a little bit better cause it's really hard to understand (for me...yet) and to put all the things together in a right way. At the moment I'm a little bit confused and I think I lost the red plot. A big question for me is what should tell us those blue zones during the similarity???? Perhaps somebody who knows can help me........
If you look at the 15min chart you will notice that most zones live for a while. Therefore if you don't have additional information or you cannot trade like the big-boys, treat those zones like support/resistance areas.
As soon as dis-similarity begins, try to figure out where price will be relative to zones already on your chart and the new-baby you are expecting...
  • #2,705
  • Jul 17, 2013 11:19am Jul 17, 2013 11:19am
Quoting condor666
{quote} So i think i will get huge profit : {image}
Manage your profits. do not leave it open like that because price will zigzag her way..... Have a manual or automatic trailing stop....
  • #2,706
  • Jul 17, 2013 11:21am Jul 17, 2013 11:21am
Quoting Eurusdd
{quote} Manage your profits. do not leave it open like that because price will zigzag her way..... Have a manual or automatic trailing stop....

I've just set a SL at 10 pips profit.
My name is Martin... Martin Gale
  • #2,707
  • Jul 17, 2013 11:26am Jul 17, 2013 11:26am
Quoting condor666
{quote} I've just set a SL at 10 pips profit.
That is also cool!
  • #2,708
  • Jul 17, 2013 11:26am Jul 17, 2013 11:26am
Quoting mattkirby
So time for me to jump in too. First of all, big thanks to Eurusdd for showing us this amazing stuff. Also thanks to all the people who help here to understand this idea of trading a little bit better cause it's really hard to understand (for me...yet) and to put all the things together in a right way. At the moment I'm a little bit confused and I think I lost the red plot. A big question for me is what should tell us those blue zones during the similarity???? Perhaps somebody who knows can help me........
Matt... I would suggest you download and read this first. Again. And probably one more time.

There are a few components but it's about PRICE in comparison to STOCHASTIC.

a) when Dis-Sim (DS) occurs, that price bar HI/LO defines your box.... but it's not born yet. Price can go through it, stay within in it, whatever.
b) when DS ends then the box is born, ie. it's visible. Where is price in comparison to that box? Above = Shorts, Below = Long


But how do you know when to get in? Timeframe = 15M only.

Note:
PDF collated by Neio!

1. Wait for the ZigZag to print a HI or LO swing on the PRICE chart. Take note of its position on the Bollinger Band. Lets call this BBA
2. Compare it to the Bollinger Band of the Stochastic, BBS
3. If BBA lies OUTSIDE of the bands.... get ready! If not, it's a fake swing, it will be taken out by a swing on a higher price.
4. If BBS occurs on the band midpoint, that is also a good indication of strength to trade in the direction of the swing.

Now all you have to do is ALIGN the ZigZag/Bollinger with the DS Zones.....

If ZZBB marks a Top and the DS Zone is below price = SHORT!
If ZZBB marks a Bottom the DS Zone is above price = LONG!

Fine tune to your trading style or whatever other indicators you use.... adjust for your risk/ stoploss etc.
Attached File(s)
File Type: pdf Eurusdd-STOCH-BB-Posts-v1.pdf   9.5 MB | 1,824 downloads
A pip is only worth it if you know how much you risked to earn it
  • #2,709
  • Jul 17, 2013 11:28am Jul 17, 2013 11:28am
Quoting Eurusdd
{quote} If you look at the 15min chart you will notice that most zones live for a while. Therefore if you don't have additional information or you cannot trade like the big-boys, treat those zones like support/resistance areas. As soon as dis-similarity begins, try to figure out where price will be relative to zones already on your chart and the new-baby you are expecting...
Thanks for your fast answer. I will try to figure out. Hope you keep going with your support in this thread for a long time. So perhaps I can see the big yellow light someday too
  • #2,710
  • Jul 17, 2013 11:32am Jul 17, 2013 11:32am
Quoting condor666
{quote} So i think i will get huge profit : {image}
I love the 2 ZigZag tops!
A pip is only worth it if you know how much you risked to earn it
  • #2,711
  • Jul 17, 2013 11:36am Jul 17, 2013 11:36am
thanks for this vlady. I have read the whole thread from the beginning 2 times now. Sometimes I think I got it and some post along I think I know nothing......but still try hard.....and will not give up. Maybe tomorrow comes the big eye opener....
  • #2,712
  • Jul 17, 2013 11:46am Jul 17, 2013 11:46am
The pdf has a post that says similarity should be used on higher time frames. It is for the big boys and the patient. I am patient enough to handle a higher time frame if someone wants to help me set up a chart for the 1 hour and up frames

Also it mentions delay principle. If similarity is intended for higher time frames, why are we trying to master it on the 15min. Is delay principle better for the 15min time frame. If so, let's learn that instead

EDIT:

Nevermind he said he was only going to share similarity here. Well it seems kind of counter-intuitive to practice similarity on a time frame it isn't intended for
  • #2,713
  • Jul 17, 2013 12:04pm Jul 17, 2013 12:04pm
http://s1307.hizliresim.com/1c/k/qf2hh.jpg
Did you think the right EURUSDD
Price is a everything!
  • #2,714
  • Jul 17, 2013 12:07pm Jul 17, 2013 12:07pm
Quoting FXWrangler
screenshot {image}
FXWrangler,

Would you mind posting your template? I really like the way this looks.
Life is too short to have anything but delusional notions about yourself.
  • #2,715
  • Jul 17, 2013 12:19pm Jul 17, 2013 12:19pm
Quoting crottsinabox
The pdf has a post that says similarity should be used on higher time frames. It is for the big boys and the patient. I am patient enough to handle a higher time frame if someone wants to help me set up a chart for the 1 hour and up frames Also it mentions delay principle. If similarity is intended for higher time frames, why are we trying to master it on the 15min. Is delay principle better for the 15min time frame. If so, let's learn that instead EDIT: Nevermind he said he was only going to share similarity here. Well it seems kind of counter-intuitive...


FWIW - Eurusdd said something that may have slipped by - http://www.forexfactory.com/showthread.php?p=6813867#post6813867

SOME have even design variations of the concept and they are doing fine.


While I think everything Eurusdd is showing is great, I also think we're supposed to apply this to other indicators/Time frames/trading styles. If you want to try something larger, I say go for it...just adjust the ratios appropriately as a base, and tweek it to where you get the similarities occurring 97% of the time.
  • #2,716
  • Jul 17, 2013 12:20pm Jul 17, 2013 12:20pm
Quoting vlady1974
{quote} Matt... I would suggest you download and read this first. Again. And probably one more time. There are a few components but it's about PRICE in comparison to STOCHASTIC. a) when Dis-Sim (DS) occurs, that price bar HI/LO defines your box.... but it's not born yet. Price can go through it, stay within in it, whatever. b) when DS ends then the box is born, ie. it's visible. Where is price in comparison to that box? Above = Shorts, Below = Long But how do you know when to get in? Timeframe = 15M only. Note: PDF collated by Neio! 1....
The way price has been moving hints a much deeper reason for the movements but the above is a good safe procedure to follow though bias may change
I want more brain power!
  • #2,717
  • Jul 17, 2013 12:46pm Jul 17, 2013 12:46pm
Eurusdd,

I would like to know step by step how do you personally hedge your trades? Thanks...
  • #2,718
  • Jul 17, 2013 12:49pm Jul 17, 2013 12:49pm
just did a research on the chart, looks like the blue zone does not always works as support and resistance...
Attached Image (click to enlarge)
Click to Enlarge Name: eurusd-m15-excel-markets-2.png Size: 77 KB
  • #2,719
  • Jul 17, 2013 1:05pm Jul 17, 2013 1:05pm
I am seriously looking at the code behind the current indicator we are using and I will make corrections - if necessary - and give you something that will prevent misunderstandings.
Do not give up!
  • #2,720
  • Jul 17, 2013 1:07pm Jul 17, 2013 1:07pm
The more post we have, the less easy it is to be tradable on mid-term basis...

Eurusdd, you are really a showman ! Forex summer TV show !

You are really not clear.
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