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The similarity system

  • #2,741
  • Jul 17, 2013 11:39am Jul 17, 2013 11:39am
Quoting Eurusdd
{quote} I MADE IT CLEAR: EURUSD will ZIGZAG her way ..... meaning, it won't be a straight fall/path, but an up and down one.
I banked out at +30 pips, cause I had to leave. Now re-entering.
  • #2,742
  • Jul 17, 2013 11:39am Jul 17, 2013 11:39am
Quoting Eurusdd
{quote} I did not write the code for the indicator! I said I am looking at the code to see if there is any problem. What is unclear about that???
Keep cool ! I am experiencing problems with ADSL connexion, so i wrote my post before i could see you will review the indicator code. You've done a good work and your ideas are great. An indicator is usefull but your ideas are much more important.

At the begining it was really clear (dissimilarity followed by a similarity and then at that time price should go back to the price where the dissimilarity started). I understood that, thinking "at dissimilarity, a big boy is injecting money, giving money to fishes around and when it has reached a certain point (simmilarity because he doesn't inject anything more), slashing the price to get all the slop losses. Maybe a kind of grid trading" but now, we have new things like a high / low of the dissimilarity zone, breakout, if you know where the price will go this is easy... This is unclear as this is not a whole thing for me.

It looks very valuable but needs really some time to digest.

I would prefer you take hollidays and come back in two months with another freshly thread where only you can post. One post a day is more mature than 50 ones with slight or no evolution.
  • #2,743
  • Jul 17, 2013 11:42am Jul 17, 2013 11:42am
Quoting shiva
{quote} Not clear to you? Don't like what you see? You are free to stop reading. No one is obliged to coach you.
No one.
  • #2,744
  • Jul 17, 2013 11:43am Jul 17, 2013 11:43am
  •  Neio
  • Joined Oct 2012 | Status: Can't think outside?Enlarge the box | 688 Posts
Quoting IFxRobot
{quote} Keep cool ! I am experiencing problems with ADSL connexion, so i wrote my post before i could see you will review the indicator code. You've done a good work and your ideas are great. An indicator is usefull but your ideas are much more important. At the begining it was really clear (dissimilarity followed by a similarity and then at that time price should go back to the price where the dissimilarity started). I understood that, thinking "at dissimilarity, a big boy is injecting money, giving money to fishes around and when it has...
You probably just need some time to take it in.

My understanding is that originally we had been helped to identify dissimilarities and their importance. Now we are trying to find a better way to make trades using that information as trading to dissimilarities often requires lots of patience and a large drawdown. Eurusdd is now showing us how to trade away from these similarities.
An expert is a man who has made all the mistakes which can be made
  • #2,745
  • Jul 17, 2013 11:44am Jul 17, 2013 11:44am
Quoting IFxRobot
{quote} Keep cool ! I am experiencing problems with ADSL connexion, so i wrote my post before i could see you will review the indicator code. You've done a good work and your ideas are great. An indicator is usefull but your ideas are much more important. At the begining it was really clear (dissimilarity followed by a similarity and then at that time price should go back to the price where the dissimilarity started). I understood that, thinking "at dissimilarity, a big boy is injecting money, giving money to fishes around and when it has...
what we are doing right now is testing the idea in real-time. This is the time to make corrections to the code. If I leave and come back in sept, a lot of people would have lost money - possible - if there is a serious problem with the indicator.
Maybe I will come back and find NO ONE on the thread!!!
I know you understand what that means? I have added nothing new. I said trading dis-similarities is for the big boys, so many people won't be able to cope. However, there are other ways too and that is what we are evaluating. It is up to you to choose the one that fits you....
  • #2,746
  • Jul 17, 2013 11:49am Jul 17, 2013 11:49am
Here is my view of the DISSIM WORLD as of the latest zone being born:

  1. SUMMARY: BIASED SHORT
  2. WHY: Asian session printed a ZZ Bottom outside BB, giving opportunity for ZZ Top to form which was today's High. Shorts entered into.
  3. WHEN: Can't offer a time projection, but it's within 14 days.
  4. WHERE: ZONE A is the target, I am looking for the bottom of the range, as well as the any nearby ZZ Bottoms
  5. WHAT: Whilst ZZ Top was forming, a Dissimilarity (DS) was formed on this candle. This is obviously a major line in the sand fundamentally as per Bernanki's intentions. Thus, the zone created is now a major resistance to upward moves. It is now ZONE B and we will return to it after ZONE A is cancelled.

Trade implementation:
I am already short. But if you're not, can enter a number of ways... break of last ZZ Bottom.
Enter now at market with a stop at the most recent swing high.
Wait for Asian session (11pm GMT) for their moves or Wait until tomorrow to see if any retrace allows for another short at BB Mid
Depends on aggressive or conservative strategy. Up to you now.


Notes on the chart:

  1. Yellow arrows show valid ZZ swings...err except the last one! Notice that the stoch BB turn is always inside or near inside the boundaries (green arrows)
  2. Compare this to the fake PRICE swings where both PRICE and STOCH are outside the Bollinger Bands... then swung back in the direction of the trend.
  3. Zone B was just born. It is NOT the target.
  4. Zone A was completed early this morning. That is the target.
  5. The recent inside BB swing has a previous template/sample which I connected with a green line... notice how similar they are. You could have entered another short here.

Attached Image (click to enlarge)
Click to Enlarge Name: EURUSD.jpg Size: 407 KB
A pip is only worth it if you know how much you risked to earn it
  • #2,747
  • Jul 17, 2013 11:52am Jul 17, 2013 11:52am
  •  Neio
  • Joined Oct 2012 | Status: Can't think outside?Enlarge the box | 688 Posts
According to what Eurusdd said earlier we should not expect 1.3082 to be broken during this similarity period. This was the LOW of the last dissimilarity period.

Quoting Eurusdd
On my chart, start of dis-similarity is Green bar and end of dis-similarity is Red bar! Within that region mark the high and the low. Now after dis-similarity ends, there will usually be a little gap before dis-similarity begins again!!! On the 15min eurusd chart, there is 95%+ chance that during the wait, the 1EMA will not break the high/low of the previous area. On my charts, I marked those wait-areas with a blue rectangle!!! {image}
An expert is a man who has made all the mistakes which can be made
  • #2,748
  • Jul 17, 2013 11:53am Jul 17, 2013 11:53am
on the chart I marked the start and the end of the zone, as you can see on the bottom window it looks like dissim has been ended earlier (yellow arrow), also on the price and stoch window it do not look like there is still dissim (yellow arrow), maybe the indi do have a delay? Sorry I am not a programmer, but is this possible?
Attached Image (click to enlarge)
Click to Enlarge Name: eurusd-m15-excel-markets-2.png Size: 47 KB
  • #2,749
  • Jul 17, 2013 11:54am Jul 17, 2013 11:54am
Quoting Neio
According to what Eurusdd said earlier we should not expect 1.3082 to be broken during this similarity period. This was the LOW of the last dissimilarity period.
Short on a 5M chart.
  • #2,750
  • Jul 17, 2013 11:56am Jul 17, 2013 11:56am
  •  Neio
  • Joined Oct 2012 | Status: Can't think outside?Enlarge the box | 688 Posts
Quoting vlady1974
Here is my view of the DISSIM WORLD as of the latest zone being born: SUMMARY: BIASED SHORT WHY: Asian session printed a ZZ Bottom outside BB, giving opportunity for ZZ Top to form which was today's High. Shorts entered into. WHEN: Can't offer a time projection, but it's within 14 days. WHERE: ZONE A is the target, I am looking for the bottom of the range, as well as the any nearby ZZ Bottoms WHAT: Whilst ZZ Top was forming, a Dissimilarity (DS) was formed on this candle. This is obviously a major line in the sand fundamentally as per Bernanki's...
Nice work! I will take some time to look over this.
An expert is a man who has made all the mistakes which can be made
  • #2,751
  • Jul 17, 2013 11:57am Jul 17, 2013 11:57am
Quoting Neio
According to what Eurusdd said earlier we should not expect 1.3082 to be broken during this similarity period. This was the LOW of the last dissimilarity period. {quote}
Yes, 95% is high and remember it is the LOW of the 1EMA not price. So, price can go below but 95% chance, it will close above!!
  • #2,752
  • Jul 17, 2013 11:59am Jul 17, 2013 11:59am
Quoting vlady1974
Here is my view of the DISSIM WORLD as of the latest zone being born: SUMMARY: BIASED SHORT WHY: Asian session printed a ZZ Bottom outside BB, giving opportunity for ZZ Top to form which was today's High. Shorts entered into. WHEN: Can't offer a time projection, but it's within 14 days. WHERE: ZONE A is the target, I am looking for the bottom of the range, as well as the any nearby ZZ Bottoms WHAT: Whilst ZZ Top was forming, a Dissimilarity (DS) was formed on this candle. This is obviously a major line in the sand fundamentally as per Bernanki's...
WOW.
  • #2,753
  • Jul 17, 2013 12:04pm Jul 17, 2013 12:04pm
Quoting Eurusdd
{quote} Yes, 95% is high and remember it is the LOW of the 1EMA not price. So, price can go below but 95% chance, it will close above!!
Shite... yes, this was one of the last things I read before I left work and I hadn't internalised it yet. I will modify the plan (for the future moves) to try and incorporate the quiet move. I think this is important.

Especially for the newbies: PRICE DOES NOT TRAVEL IN STRAIGHT LINES.

I've known this a long time prior to this thread, but it is still easy to get caught up in the emotion of trades and news etc. Zones A and B (as per my prev post) are connected by one major thing: NEWS. Panic or greed create straight or near vertical lines. Once the drama has been absorbed, the interaction of all big players creates the zigzag patterns.

So it makes sense that once Similarity is in equilibrium, basically the market is still...absorbing the data until a new arbitrage opportunity arises.... leading to Dissimilarity.... and the beat goes on.
A pip is only worth it if you know how much you risked to earn it
  • #2,754
  • Jul 17, 2013 12:05pm Jul 17, 2013 12:05pm
If I may make a suggestion. Try to put all the things the OP has laid out onto one chart. The indicators are there now for you to do so.

When dissimilarity begins, go in the direction of the last similarity, but only if price has extended far enough. The BB and the ZZ will let you know when to do this. Keep your position until you are stopped out or until you get similarity again. This is how I see it.
Attached Image (click to enlarge)
Click to Enlarge Name: eurjpym15.png Size: 46 KB
If you are good at something, never do it for free--Joker
  • #2,755
  • Jul 17, 2013 12:10pm Jul 17, 2013 12:10pm
Quoting Forex Lion
on the chart I marked the start and the end of the zone, as you can see on the bottom window it looks like dissim has been ended earlier (yellow arrow), also on the price and stoch window it do not look like there is still dissim (yellow arrow), maybe the indi do have a delay? Sorry I am not a programmer, but is this possible? {image}
Hey Lion... the best way I can describe this is that you are looking at a pregnancy ultrasound picture once it's been taken.
Whereas if you've ever seen an ultrasound being done... it's always moving. The MOVEMENT CREATES A 3D PICTURE.... and yet it's a 2D image.

Same with the chart. The price has been printed. One bar is 15 Minutes! What you can't see are the ever changing values - ONE OF WHICH WAS DISSIMILAR - and the indicator triggers the start/end. But you only see one bar and the last price as at 14:59:59:59 seconds.

Bearing this in mind, you may see similarity.... but your software indi is on all the time. You may have paused, gone to the bathroom, made a coffee, bitten your nails... whatever... but that indi scans constantly and will pick up the variance.
A pip is only worth it if you know how much you risked to earn it
  • #2,756
  • Jul 17, 2013 12:11pm Jul 17, 2013 12:11pm
Two profit trades
http://k1307.hizliresim.com/1c/k/qf6xj.jpg
Price is a everything!
  • #2,757
  • Jul 17, 2013 12:12pm Jul 17, 2013 12:12pm
Quoting Madmoney
{quote} I banked out at +30 pips, cause I had to leave. Now re-entering.
Nice one bro!

And I like how you're pushing this to other pairs! Keep em coming! We can learn from you!
A pip is only worth it if you know how much you risked to earn it
  • #2,758
  • Jul 17, 2013 12:17pm Jul 17, 2013 12:17pm
Quoting vlady1974
{quote} Hey Lion... the best way I can describe this is that you are looking at a pregnancy ultrasound picture once it's been taken. Whereas if you've ever seen an ultrasound being done... it's always moving. The MOVEMENT CREATES A 3D PICTURE.... and yet it's a 2D image. Same with the chart. The price has been printed. One bar is 15 Minutes! What you can't see are the ever changing values - ONE OF WHICH WAS DISSIMILAR - and the indicator triggers the start/end. But you only see one bar and the last price as at 14:59:59:59 seconds. Bearing this in...
thanks vlady!

ok, so we need this indicator, without it is impossible to follow
by the way, as I looked on the ultrasound picture of my daughter I also had problems to see the right things
  • #2,759
  • Jul 17, 2013 12:23pm Jul 17, 2013 12:23pm
Quoting FXWrangler
screenshot {image}
I believe my posts got mixed up in the shuffle from just being approved as a posting member.

What I had said that never made to print was this:

If price closes above or below the dissimilarity box during dissimilarity then it will take out the next closest level in that direction. My screenshot demonstrating this was on the linked post.

Please click on the "quoting fxwrangler" link to see the actual screenshot.
  • #2,760
  • Jul 17, 2013 12:29pm Jul 17, 2013 12:29pm
Quoting Eurusdd
DURING THE WEEKEND, i will post a series of pictures showing you a much simpler and powerful way to use the stoch-bb similarity technique. I will HELP you pick tops/bottoms within the accuracy of 10-20 pips stop-loss. I hope I will have the time. I want you to turn you red into green..

Eurusdd

When you have time, could you show us this technique of picking Tops/Bottoms.
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