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Similarity: A Practical Approach

  • #61
  • Jul 27, 2013 11:00am Jul 27, 2013 11:00am
well, I see you guys are talking about the indicators, some even based on the "sim/dis-sim zones" indicator to trade but as Eurusdd said it's just about 60% correct. Do you believe on something with 60% probability of correction or something which derives from that 60%? I'm not. So what I wonder is how to find "true" sim/dis-sim zones. That takes me come back to the fundamental concept: similarity.

As Joe has just posted:
Quoting jmn5611
Thanks to all who want to continue this very interesting discussion. So, what is similarity? What does it represent? What are these so called black holes? Well from what I can see, which is not very much, using indicators to spot the black holes has to do with momentum. Or better yet, uniform price flow. I think dissimilarity begins when uniform price flow ends. So price has to go back there to correct that "error" Thoughts?
So,

What is similarity/dis-similarity? Why? When? How?

I think if we can't find the clear and correct answers for those questions first then we just based on "wrong" understanding of the principle.
So I hope to see elaboration on those questions as I read the threads many times but I think I still haven't understood those concepts at its deepest.
Thank you!
  • #62
  • Jul 27, 2013 11:16am Jul 27, 2013 11:16am
I wish to present some whiskey-induced thoughts here. (Might be offensive to elephants and other large mammals, chihuahuas not included)

What is true nature of price? If no one manipulates it, price tends to go to zero.

Similarity is equilibrium and dissimilarity is the anomaly.

Price always tends to reach an equilibrium whereas the market participants tend to disrupt this to profit from the anomaly.

Quote
And once done profiting the participants liquidate (To enjoy a hard earned drink) Now the price is free to travel towards its natural state of equilibrium - zero (Not necessarily down)

.


Our job is to find the relative 'zero' towards which price will gravitate after the anomaly is resolved.
  • #63
  • Jul 27, 2013 11:18am Jul 27, 2013 11:18am
There is a 10+V invisible member reading here and I bet my gonads that its our Guru EURUSDD
  • #64
  • Jul 27, 2013 11:51am Jul 27, 2013 11:51am
Quoting taypot
{quote} Hi Xixi, great to see you here! I like your indicator as it shows the start and trade out of the pink zone, only leaving the remaining untraded zone in green, but why do you think Ralome's was further adapted by Eurusdd into rv1 and rv2? Why didn't he use yours? I needed to try out the two rv1 and rv2 so i had to switch back. Did you produce a rv2 equivalent as it would be very useful?
Hi taypot,
Thanks for your interest in my indicator.
Basically my indicator and Ralome's has no difference. Ralome is the originator, I just modified his indicator a little bit to suit my style.

Quote
Did you produce a rv2 equivalent as it would be very useful?
Here you go. I've just modified the code a bit so now you could switch back and forth between rv2 equivalent and the latest one.
Attached Image (click to enlarge)
Click to Enlarge Name: 2013-07-28-01.png Size: 79 KB
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File Type: mq4 StochDifZoneX_v2_1.mq4   10 KB | 867 downloads
  • #65
  • Jul 27, 2013 12:37pm Jul 27, 2013 12:37pm
My 2 cents....

Why is it so important to find the "Black Hole"?

I know that this is of the utmost importance as the price is supposed to return there........

But lets face it, if you are as mathematically challenged as I am then it will forever be lost.....LOL

Fact is that just trading eurusdd original introductory method with the CI,ZZ and BB or BB,ZZ and Stoch is more than enough for me....

This is what I am currently developing....
  • #66
  • Jul 27, 2013 12:41pm Jul 27, 2013 12:41pm
Quoting xixi
well, I see you guys are talking about the indicators, some even based on the "sim/dis-sim zones" indicator to trade but as Eurusdd said it's just about 60% correct. Do you believe on something with 60% probability of correction or something which derives from that 60%? I'm not. So what I wonder is how to find "true" sim/dis-sim zones. That takes me come back to the fundamental concept: similarity. As Joe has just posted: {quote} So, What is similarity/dis-similarity? Why? When? How? I think if we can't find the clear and correct answers for...
Xixi,

The indicator's formula is correct. The 60% figure he seems to be referring to, must be the other TF's that are not being analyzed.
  • #67
  • Jul 27, 2013 12:43pm Jul 27, 2013 12:43pm
Quoting Gvc
My 2 cents.... Why is it so important to find the "Black Hole"? I know that this is of the utmost importance as the price is supposed to return there........ But lets face it, if you are as mathematically challenged as I am then it will forever be lost.....LOL Fact is that just trading eurusdd original introductory method with the CI,ZZ and BB or BB,ZZ and Stoch is more than enough for me.... This is what I am currently developing....

Black Holes = Potential Targets,

CI, zz, bb, stoch = entries.
  • #68
  • Jul 27, 2013 1:07pm Jul 27, 2013 1:07pm
It appears that a person needs NASA,s SGI Super-computer to find this Black Hole.

Like I said I am content to trade the dis.... on the indicators....both ways...
  • #69
  • Jul 27, 2013 1:18pm Jul 27, 2013 1:18pm
great thread jmn5611!, would you share your RSI indicator with the colored background zones please?, thank you
  • #70
  • Jul 27, 2013 1:26pm Jul 27, 2013 1:26pm
Post a link to the EURUSDD thread.
  • #71
  • Jul 27, 2013 5:19pm Jul 27, 2013 5:19pm
Quoting Gvc
My 2 cents.... Why is it so important to find the "Black Hole"? I know that this is of the utmost importance as the price is supposed to return there........ But lets face it, if you are as mathematically challenged as I am then it will forever be lost.....LOL Fact is that just trading eurusdd original introductory method with the CI,ZZ and BB or BB,ZZ and Stoch is more than enough for me.... This is what I am currently developing....
Well, I think many of us want to know exactly what it is. EURUSDD said that there are many ways to find it, or at least an approximation of it. The cycle indicator is horrendously unstable. I personally wanted something that will not repaint. The stoch method is one of many ways to find it. I hope that next week you post your trades.

I am hopeful that a lot of people post their trades. I do not believe in just one road for this concept. As long as your indicator set up is according to the rules that the charts must be similar 90% of the time, when it becomes dissimilar, that should be a price point of interest.

I am no math genius either, but I do not think you have to be. I think we have to understand what the anomaly is, after we get that, we can reverse engineer our way to pointing it out on our charts.
If you are good at something, never do it for free--Joker
  • #72
  • Jul 27, 2013 5:24pm Jul 27, 2013 5:24pm
Quoting xixi
{quote} Hi taypot, Thanks for your interest in my indicator. Basically my indicator and Ralome's has no difference. Ralome is the originator, I just modified his indicator a little bit to suit my style. {quote} Here you go. I've just modified the code a bit so now you could switch back and forth between rv2 equivalent and the latest one. {file} {image}
Thanks for your work xixi
If you are good at something, never do it for free--Joker
  • #73
  • Jul 27, 2013 5:25pm Jul 27, 2013 5:25pm
Quoting Karish
great thread jmn5611!, would you share your RSI indicator with the colored background zones please?, thank you

Karish, the colored zones are hand drawn. Use the rectangle tool.
If you are good at something, never do it for free--Joker
  • #74
  • Jul 27, 2013 5:30pm Jul 27, 2013 5:30pm
Quoting shiva
There is a 10+V invisible member reading here and I bet my gonads that its our Guru EURUSDD

He should be pleased that he inspired his very own independent classroom!
If you are good at something, never do it for free--Joker
  • #75
  • Jul 27, 2013 6:49pm Jul 27, 2013 6:49pm
Quoting Gvc
It appears that a person needs NASA,s SGI Super-computer to find this Black Hole. Like I said I am content to trade the dis.... on the indicators....both ways...
GVC, it seems you understand the strategy very well. KIndly please post your chart examples with caption pointing your entry and target? Thats is the only thing I need to understand at first. I think. Thanks!
  • #76
  • Edited 3:29am Jul 28, 2013 2:16am | Edited 3:29am
What is really nice with Joe that we don't find elsewhere ?

He was banned from another thread, so he could ban people from this other thread. But he did not.

For me this is a more valuable voucher
Enter Signature
  • #77
  • Jul 28, 2013 2:23am Jul 28, 2013 2:23am
Thank u Joe... Subscribed..
  • #78
  • Jul 28, 2013 2:45am Jul 28, 2013 2:45am
Quoting xixi
{quote} Hi taypot, Thanks for your interest in my indicator. Basically my indicator and Ralome's has no difference. Ralome is the originator, I just modified his indicator a little bit to suit my style. {quote} Here you go. I've just modified the code a bit so now you could switch back and forth between rv2 equivalent and the latest one. {file} {image}
Hi Xixi, thanks for the indicator. When I run this through the MT4 strategy tester, this looks amazing. Does it run the same in real time?

jt
"Even if you fall down face first, you still went forward."
  • #79
  • Jul 28, 2013 4:07am Jul 28, 2013 4:07am
Quoting Effex
{quote} Whats the difference in the fractals Juhanimi? I cannot seem to tell from your image. Can you explain further? Thanks
add this, then maybe you can see dis-similarity thing

http://www.forexfactory.com/showthre...68#post3747868
  • #80
  • Jul 28, 2013 4:39am Jul 28, 2013 4:39am
maybe some coding needed here with fractals-> show only when 2 or more are on the same side
cleaner charts
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