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The similarity system

  • #3,061
  • Jul 18, 2013 12:29pm Jul 18, 2013 12:29pm
Quoting lnorbi
{quote} Very good point about dissim / resistance, thanks for that. Also can you shed some light on when do you consider ZZ bottom confirmed? EDIT: on a second thought, it cannot be dissim falling to zero, as this would mean the end of the dissim area and beginning of the zone, wouldn't it? It was rather like "flat", but to be honest, I cannot really confirm this by looking back at my charts.
I think that it's not the case of an absence of similarity by itself. It's an absence of similarity over a duration of time. But that's just my opinion.
Perhaps the difference is 0.001 which is too small to draw on a chart?
A pip is only worth it if you know how much you risked to earn it
  • #3,062
  • Jul 18, 2013 12:37pm Jul 18, 2013 12:37pm
Bollinger Band has now been pierced on the 5M.... the 15M looks like it is confirming that ZZ Bottom.

I would like a retrace to occur now. To 3090 or 3085, for another long.
Whoop... 15M just pierced the opposite Bollinger band... perhaps that's an additional criteria for confirming a swing Top/Bottom.
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A pip is only worth it if you know how much you risked to earn it
  • #3,063
  • Jul 18, 2013 12:41pm Jul 18, 2013 12:41pm
  •  Neio
  • Joined Oct 2012 | Status: Can't think outside?Enlarge the box | 688 Posts
Yep looks like that bottom has been confirmed...with that upward ZZ leg. Sorry I don't have time to post chart heading out.
An expert is a man who has made all the mistakes which can be made
  • #3,064
  • Jul 18, 2013 12:42pm Jul 18, 2013 12:42pm
for whatever it is worth, I notice lower lows and lower highs.
  • #3,065
  • Jul 18, 2013 12:43pm Jul 18, 2013 12:43pm
Another beauty!
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  • #3,066
  • Jul 18, 2013 12:47pm Jul 18, 2013 12:47pm
Quoting Madmoney
Another beauty! {image}
Guys, this is the same scenario as when Eurusdd called the 2896 and it flew up.
2 zones, one being created but not born which would trap price above it and another zone above price. It shot through the gap.

Personally... I think this could go higher than 3158. If it cancels the higher Zone but fails to take out 3200, It will be BIG FALL to that large lower zone at 29XX which will also take out this most recent zone that got created at 3060.
A pip is only worth it if you know how much you risked to earn it
  • #3,067
  • Jul 18, 2013 1:02pm Jul 18, 2013 1:02pm
EURUSDD mentioned comparing charts as below. Well, I've marked a few differences between the two templates and inviting any comments. First point applies as one zone appears to start an hour before the other so that means this zone is a good target.

Price is also outside and above boll while stoch is inside, so doesn't this imply that stoch will have to catch up and so price will rise now?

1: When one indicator shows start of dis-similarity and the other doesn't, the zone that will be created is a very good target.
2: When both charts show dis-similarity bars at the same time, the zones do not appear at the same time AND one zone is taken out before the other one appears on the other chart, then that zone is a very good target.
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  • #3,068
  • Jul 18, 2013 1:25pm Jul 18, 2013 1:25pm
Everyone has gone silent, let's post some charts of our trades.
  • #3,069
  • Jul 18, 2013 1:30pm Jul 18, 2013 1:30pm
ok. Been doing some studying of my own. I am posting to share if it is correct or to be flamed if it is wrong. I apologize is this may look a bit obvious but this is all I can do with my limited math. I actually like math but statistics was not the part I liked best. I sure regret it now.

- It is possible to tell when a dissimilarity will start or end. Sometimes very accurately and even if stochastic is somewhere in the middle
- No DI-similarity can ever exists less than 24 periods, in this case 24 M15 candles = 6 hrs

There is more. If this is and old chapter of this book or if it is completely wrong, please let me know so I can keep it to myself. Otherwise, let me know as well and I can share what I have.
Please pull my head out of my ass, I am running out of oxygen...
  • #3,070
  • Jul 18, 2013 1:36pm Jul 18, 2013 1:36pm
Quoting PiPtHiEf
ok. Been doing some studying of my own. I am posting to share if it is correct or to be flamed if it is wrong. I apologize is this may look a bit obvious but this is all I can do with my limited math. I actually like math but statistics was not the part I liked best. I sure regret it now. - It is possible to tell when a dissimilarity will start or end. Sometimes very accurately and even if stochastic is somewhere in the middle - No DI-similarity can ever exists less than 24 periods, in this case 24 M15 candles = 6 hrs There is more. If...
Sounds like you made a real effort! Do feel free to share it with us!
  • #3,071
  • Jul 18, 2013 1:38pm Jul 18, 2013 1:38pm
Quoting Madmoney
Everyone has gone silent, let's post some charts of our trades.
I was at work today when most of this went down earlier so no trades from me. But I am going to be completely honest, I haven't got much of a clue where to enter the market and which direction.

I can look at the various instructions posted and I comprehend them no problem but we jump around so fast I still get confused. And everyone has their own terminology and other methods start getting thrown into the mix, so I start second guessing everything haha. So for me, when in doubt, sit it out.

I am in no hurry to make a killing off this market so I am just being patient studying the thread and charts until I come to MY OWN understanding. And Eurusdd has mentioned a few times that we will get there. The thread is still very much interesting to me so I am still game
  • #3,072
  • Jul 18, 2013 1:42pm Jul 18, 2013 1:42pm
Here are mine.


No ZZ or the recent Stoch divergence indi's. I don't think I will ever use them to be honest.
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  • #3,073
  • Jul 18, 2013 1:46pm Jul 18, 2013 1:46pm
Quoting crottsinabox
{quote} I was at work today when most of this went down earlier so no trades from me. But I am going to be completely honest, I haven't got much of a clue where to enter the market and which direction. I can look at the various instructions posted and I comprehend them no problem but we jump around so fast I still get confused. And everyone has their own terminology and other methods start getting thrown into the mix, so I start second guessing everything haha. So for me, when in doubt, sit it out. I am in no hurry to make a killing off this market...
Hang in there.
  • #3,074
  • Jul 18, 2013 1:48pm Jul 18, 2013 1:48pm
I had to go out of town for a few days so am scrambling to catch up. Here are a couple observations though:

1. Most charts aren't showing the old zones grayed out once they have been taken out. It's on the indicator properties and probably a good idea to do so.


2. Like most, I am not sure yet how to trade this, but as someone else suggested earlier, there does seem to be an easy strategy right in front of is. If you go back even further and gray out the zones that are taken out, you can see that they are almost all taken out, so why not just trade those? If price enters a zone from below, enter long with tp at other end of the zone and vice versa. This looks like a high probability trade (and a lot less math).
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  • #3,075
  • Jul 18, 2013 1:58pm Jul 18, 2013 1:58pm
Exactly! Use them as S/R.
  • #3,076
  • Jul 18, 2013 1:58pm Jul 18, 2013 1:58pm
Quoting Dewey McG
I had to go out of town for a few days so am scrambling to catch up. Here are a couple observations though: 1. Most charts aren't showing the old zones grayed out once they have been taken out. It's on the indicator properties and probably a good idea to do so. 2. Like most, I am not sure yet how to trade this, but as someone else suggested earlier, there does seem to be an easy strategy right in front of is. If you go back even further and gray out the zones that are taken out, you can see that they are almost all taken out, so why not just trade...
I put a buy stop pending order at the zone above earlier this day, just for testing what you mention.
That's trading corrections, and as Eurusdd says, its for the big boys and you need patience.

It feel like what the thread is leaning towards right now is focusing on how to trade during similarity or dis-similarity.
  • #3,077
  • Jul 18, 2013 2:02pm Jul 18, 2013 2:02pm
Quoting spufuz
{quote} I put a buy stop pending order at the zone above earlier this day, just for testing what you mention. That's trading corrections, and as Eurusdd says, its for the big boys and you need patience. It feel like what the thread is leaning towards right now is focusing on how to trade during similarity or dis-similarity.
But with that said, im still very curious about the zone-corrections.
If its possible to put entry at one side of the zone and exit at the other, I can imagine that it would be good to put some off the table at exit and let it run with S/L moved to break even.
Looks like price often continues after closing a zone!?
  • #3,078
  • Jul 18, 2013 2:08pm Jul 18, 2013 2:08pm
I am, by the way, working on a simple indicator that can help with what I said. Have patience, I do have a day job that for now pays better than forex. Lets not forget the healthcare benefits that come with it.
Please pull my head out of my ass, I am running out of oxygen...
  • #3,079
  • Jul 18, 2013 2:29pm Jul 18, 2013 2:29pm
I think I'm understanding simply are closing roads and mark the path of the price. but lack the exact time in which to perform the operation.
  • #3,080
  • Jul 18, 2013 2:42pm Jul 18, 2013 2:42pm
Quoting Dewey McG
I had to go out of town for a few days so am scrambling to catch up. Here are a couple observations though: 1. Most charts aren't showing the old zones grayed out once they have been taken out. It's on the indicator properties and probably a good idea to do so. 2. Like most, I am not sure yet how to trade this, but as someone else suggested earlier, there does seem to be an easy strategy right in front of is. If you go back even further and gray out the zones that are taken out, you can see that they are almost all taken out, so why not just trade...
I have noticed that too. It seems once price gets so close to a zone it cant seem to pull away and eventually takes the zone out

If price breaks the lower line of this box above, I am going to throw a demo trade up for TP at the top of the box to test it out
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