The similarity system | Page 185 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Similarity: A Practical Approach 859 replies

Similarity Trading - The ZZBB Method 215 replies

Rainbow similarity 256 replies

Similarity Stuff 17 replies

Directional Similarity 0 replies

Attachments: The similarity system
Exit Attachments

The similarity system

  • #3,681
  • Jul 21, 2013 1:08pm Jul 21, 2013 1:08pm
Thank you very much EURUSDD to formulate a principle of similarity. You have given much to this principle and understand that you've found these functions satisfactorily. Also I deem a good data management for optimum results. I will continue my fight for the meeting of these two functions, because I think they are the key to a successful system.

Thank you so much
  • #3,682
  • Jul 21, 2013 1:09pm Jul 21, 2013 1:09pm
Quoting JazzmanQ2
{quote} Bingo! But you can set 3 diff periods. Play with it!
Thanks!!! This changes how I see my charts a fair bit...hmm gotta do some thinking
I want more brain power!
  • #3,683
  • Jul 21, 2013 1:13pm Jul 21, 2013 1:13pm
I just finished going through the entire thread. Very intriguing and confusing at the same time. Going back to post #1 and reading again.....

Thanks everyone!
  • #3,684
  • Jul 21, 2013 1:13pm Jul 21, 2013 1:13pm
Quoting JazzmanQ2
{quote} Here ya go! Q {image}
i see the SEMAFOR, can u show a chart that showed trading using 3ZZs?
  • #3,685
  • Jul 21, 2013 1:22pm Jul 21, 2013 1:22pm
Quoting panamamike
{quote} i see the SEMAFOR, can u show a chart that showed trading using 3ZZs?
I think you mean 3 TF's?
  • #3,686
  • Jul 21, 2013 1:25pm Jul 21, 2013 1:25pm
Quoting panamamike
{quote} i see the SEMAFOR, can u show a chart that showed trading using 3ZZs?

This what you mean? ZZ periods same as samaphor periods
Attached Image (click to enlarge)
Click to Enlarge Name: zz sem1.gif Size: 34 KB
The Only Constant Is Change!
  • #3,687
  • Jul 21, 2013 1:29pm Jul 21, 2013 1:29pm
Quoting Madmoney
{quote} I think you mean 3 TF's?
ok. That is why I asked if using SEMAFOR was a type of MTF analysis of ZZ.
  • #3,688
  • Jul 21, 2013 1:35pm Jul 21, 2013 1:35pm
If anyone is interested experimenting with MTF's....
Attached File(s)
File Type: mq4 3_ZZ_Semafor_MTF.mq4   8 KB | 975 downloads
  • #3,689
  • Jul 21, 2013 1:37pm Jul 21, 2013 1:37pm
Quoting panamamike
{quote} ok. That is why I asked if using SEMAFOR was a type of MTF analysis of ZZ.

It is multi period not multi time frame but similar
The Only Constant Is Change!
  • #3,690
  • Jul 21, 2013 1:38pm Jul 21, 2013 1:38pm
Quoting Madmoney
If anyone is interested experimenting with MTF's.... {file}
MM, isn't MTF an obscene word?
  • #3,691
  • Jul 21, 2013 1:39pm Jul 21, 2013 1:39pm
Quoting shiva
{quote} MM, isn't MTF an obscene word?
MULTI TIME FRAME!
  • #3,692
  • Jul 21, 2013 1:50pm Jul 21, 2013 1:50pm
hello JazzmanQ2 (http://www.forexfactory.com/jazzmanq2)
could you plz attach your temp as showing in post #3685
thanks
  • #3,693
  • Jul 21, 2013 1:57pm Jul 21, 2013 1:57pm
Ok this observation may be highly flawed because Im tired, there is not a lot of instances of it to be sure or an incident where I just realised "oh hey!do you guys know that water is actually WET!!" or simply a figment of my imagination but I will try word it properly so I don't confuse people.....and sound too stupid...

During periods of DS as captured by indicator rv1...should the 1EMA go out outside of its BB while the stoch is still inside its own BB, price will very often but not always reverse at the next candle.

Do not confused this with valid ZZ top/bot!
I want more brain power!
  • #3,694
  • Jul 21, 2013 2:09pm Jul 21, 2013 2:09pm
Quoting xixi
{quote} As I see, if ZZ, DS start, EMA touching the band happen at the same time then it's always a top/bottom. Look at the chart. {image}
Sorry guys! but it is not always the bottom or the top, your pic shows that. But the pic does help give a clue why and will help us to trade in the right direction.

1. the NEW, SMALL zone created to the left and below.

2. The OLDER, BIGGER zone just above has not been taken out yet. Being tested in the middle pic.

Your observances can be used to help if you also consider the proximity of the newer and older zones around.
New small zones offer the least resistance to being taken out in a shorter time.

Reason why? Each zone is created by a single BAR / Candle for that time frame, so in that time if the bar is long (larger zone) it would represent more pressure in the closing direction.

If the bar is short (small zone) in would still offer pressure in the closing direction but less than the larger bar. = less resistance.

So, in your example, the reason price went down; there was an older stronger resistance zone above.

There were newer, weaker zones below.

You were at the BB high with ZZ there, and a Dis Similarity Zone was being created by a DOWN BAR = look for price to move away from the zone in the same direction as the Dis similarity.

So, in my pic below where I marked your pic, that was not a Bottom because, a DOWN Dis similarity was created at the lower BB, confirming prices continued direction of travel and also marking a zone to return to.

If the Zone that was created it was an up bar, price would look to continue in that direction and return there to correct.
Attached Image (click to enlarge)
Click to Enlarge Name: Not Bottom.png Size: 93 KB
  • #3,695
  • Jul 21, 2013 3:22pm Jul 21, 2013 3:22pm
Quoting Eurusdd
THE SIMILARITY PRINCIPLE!!! Let X(n) be a random/pseudo-random process that satisfies - certain well-defined conditions (known as the fractal-conditions). Let F and G be functions that satisfy the Black-conditions and agree almost surely on the set {X(n)| n>0}. Then the set of values on which F and G do not agree is a predictor of the process. One has to construct F and G, continuously as the process evolves or use the back-door approach to extend F and G. This is the hardest part!!! If you can construct good candidates for F & G, then you are close!!!...
Thanks Eurusdd, it explains a lot. Great thread btw
Time matters most
  • #3,696
  • Jul 21, 2013 3:28pm Jul 21, 2013 3:28pm
Quoting blackqn
{quote} Thanks Eurusdd, it explains a lot. Great thread btw
I have VERY GOOD candidates for F and G but I am still modifying key parameters. That is one reason I am able to make GOOD CALLS that sometimes do not make sense - taking into consideration NEWS items and the general environment at the time the CALL was made.
  • #3,697
  • Jul 21, 2013 3:36pm Jul 21, 2013 3:36pm
you have algorithms that take into account up to the news so to speak. Their decisions are not affected by news. great job
  • #3,698
  • Jul 21, 2013 3:43pm Jul 21, 2013 3:43pm
Quoting burnssss
you have algorithms that take into account up to the news so to speak. Their decisions are not affected by news. great job
I want people to attack trading from this direction and see their REDS become GREENS!!!
  • #3,699
  • Jul 21, 2013 3:56pm Jul 21, 2013 3:56pm
the complexity of the model lies in these two functions. It is not easy to determine two functions to explain the correlation, and the point where they express that similarity represents a turning point. Basically express money but would have to consider the other side of time. The time in which this that turn. Expressing the data on daily TF, weeks and months, you would have a very powerful tool.
The functions F and G could be carried out by the stochastic because i think is the indicator that best expresses the dynamics of the price. The price shows a lot of noise so it is necessary filter
  • #3,700
  • Jul 21, 2013 3:56pm Jul 21, 2013 3:56pm
Quoting Eurusdd
Let X(n) be a random/pseudo-random process that satisfies - certain well-defined conditions (known as the fractal-conditions). Let F and G be functions that satisfy the Black-conditions and agree almost surely on the set {X(n)| n>0}. Then the set of values on which F and G do not agree is a predictor of the process. One has to construct F and G, continuously as the process evolves or use the back-door approach to extend F and G. This is the hardest part!!! If you can construct good candidates for F & G, then you are close!!!
I have a function on 2 different timeframes, which almost surely agree on the same data set. For number guys and girls let me give you exact number - it is 96.085409252669039145907473309609 percent the signals of that function agree on M1/M5 timeframe. In other words 98% of signals from M5 are there on M1.

I must be close. I damn hope so
21 traders viewing now