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Similarity: A Practical Approach

  • #101
  • Jul 28, 2013 7:26am Jul 28, 2013 7:26am
I think you can evaluate all tf while the code is just longer, but as you evaluate one tf, can assess all. It takes all the values ​​of all tf prices and from there, noting the expression indicating the similarity and point out the mathematical expression to indicate the similarity. The problem perhaps is that we must be constantly downloading data to evaluate whether or not similarity. Of course we know in advance that EURUSD is persistent in all tf as a track that has been used EURUSDD is that all tf.
  • #102
  • Jul 28, 2013 7:28am Jul 28, 2013 7:28am
Quoting jmn5611
{quote} I agree, so whatever we use, do we need to see dissimilarity from the top down, or from the bottom up? Connie Brown says we should look for indicator anomalies from the Month down to your trading frame. So if you see dissimilarity from on the monthly, weekly, daily, and finally hourly time frame we should pull the trigger. Do you agree or would you look from M1 up?
Great question. I've had numerous traders say to me Top Down, ie. Month > Week > Day > 4H > 1H > 15M > 5M > 1M. That covers all bases I think. Even from a non-SM point of view, if you were a 1M scalper... wouldn't you want to know that the entire week has been an UP move and therefore your scalp targets are all going to be Longish?

I know some people use different combinations as well... eg. Day > 4H > 2H > 1H or 1H > 30M > 15M > 5M
Doesn't really matter. What if for example, Eurusd was bull for 6 months then we got a DS on the current month....wouldn't that impact on every other timeframe eventually? And sooner rather than later?
A pip is only worth it if you know how much you risked to earn it
  • #103
  • Jul 28, 2013 7:29am Jul 28, 2013 7:29am
Quoting jmn5611
{quote} I need two more vouches before I can vouch for others. Believe me, I have a list
+1 Done!
A pip is only worth it if you know how much you risked to earn it
  • #104
  • Jul 28, 2013 7:29am Jul 28, 2013 7:29am
Quoting juhanimi
{quote} eu daily {image}
Working on your really interesting fractal idea Juhanimi with xixi's indicator (THANKS! Xixi).

Any thoughts on this EURUSD 4 hr?

Blue/orange rectangles, inserted by me, show double fractals (orange are a group of 4 )
Pink zones are dis zones created by indicator and they appear before/mark a major change in trend
Attached Image (click to enlarge)
Click to Enlarge Name: last.png Size: 53 KB
  • #105
  • Jul 28, 2013 7:31am Jul 28, 2013 7:31am
The use of indicators may delay the answer, but we must also take into account that using small tf prices may bring more noise
  • #106
  • Jul 28, 2013 7:36am Jul 28, 2013 7:36am
Quoting taypot
{quote} Working on your really interesting fractal idea Juhanimi with xixi's indicator (THANKS! Xixi). Any thoughts on this EURUSD 4 hr? Blue/orange rectangles, inserted by me, show double fractals (orange are a group of 4 ) Pink zones are dis zones created by indicator and they appear before/mark a major change in trend {image}
Is that an indicator drawing those arrows?
A pip is only worth it if you know how much you risked to earn it
  • #107
  • Jul 28, 2013 7:51am Jul 28, 2013 7:51am
Quoting taypot
{quote} Working on your really interesting fractal idea Juhanimi with xixi's indicator (THANKS! Xixi). Any thoughts on this EURUSD 4 hr? Blue/orange rectangles, inserted by me, show double fractals (orange are a group of 4 ) Pink zones are dis zones created by indicator and they appear before/mark a major change in trend {image}
Here's Xixi's new indicator on the 4H
Attached Image (click to enlarge)
Click to Enlarge Name: eurusddaily.png Size: 33 KB
A pip is only worth it if you know how much you risked to earn it
  • #108
  • Jul 28, 2013 7:53am Jul 28, 2013 7:53am
Quoting vlady1974
{quote} +1 Done!
Thanks Vlady!
If you are good at something, never do it for free--Joker
  • #109
  • Jul 28, 2013 7:56am Jul 28, 2013 7:56am
Quoting vlady1974
{quote} Is that an indicator drawing those arrows?
hi vlady, good to see you here, its just the fractals indicator (Bill Williams, already presnt in MT4 indicators). I have never used it so keen to understand what Juhanimi is showing us. From what I can on the chart see those double fractals could imply a change of trend a good percentage of the time.
  • #110
  • Jul 28, 2013 7:56am Jul 28, 2013 7:56am
Quoting vlady1974
{quote} Great question. I've had numerous traders say to me Top Down, ie. Month > Week > Day > 4H > 1H > 15M > 5M > 1M. That covers all bases I think. Even from a non-SM point of view, if you were a 1M scalper... wouldn't you want to know that the entire week has been an UP move and therefore your scalp targets are all going to be Longish? I know some people use different combinations as well... eg. Day > 4H > 2H > 1H or 1H > 30M > 15M > 5M Doesn't really matter. What if for example, Eurusd was bull for 6 months then we got a DS on the current month....wouldn't...

That's true, so top down would be the more logical choice. As the zones become tighter with the smaller timeframes we will eventually get to a very small window as the price target for our next trade.
If you are good at something, never do it for free--Joker
  • #111
  • Edited 8:10am Jul 28, 2013 8:00am | Edited 8:10am
The coders might already be working on this, but it appears what we need is MTF DZ indicator. Something we can put in the corner of the chart and as zones light up we can see it. Do you think that is doable xixi?
Attached Image (click to enlarge)
Click to Enlarge Name: gbpusdh1.png Size: 30 KB
If you are good at something, never do it for free--Joker
  • #112
  • Jul 28, 2013 8:01am Jul 28, 2013 8:01am
Quoting Kiads
{quote} i use stoch and bb for years with set stoch 72-1-1 and bb 18 in every TF. it's work for me.. lol {image}
Hi Kiads, although we can see your position, can you mark on the picture and/or explain your entry?

Thanks, jt
"Even if you fall down face first, you still went forward."
  • #113
  • Jul 28, 2013 8:31am Jul 28, 2013 8:31am
I still think that the data should be suitable platforms for mt4, do not make optimal load and reduces the probability of success
  • #114
  • Jul 28, 2013 8:41am Jul 28, 2013 8:41am
Quote: 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!!!
------------------------------------ --------

​This principle is good and applicable to forex-trading. The price-process of EURUSD satisfies 8/10 of the fractal-conditions!



You need to find indicators F & G that can read all time frames one one time frame.
  • #115
  • Jul 28, 2013 8:53am Jul 28, 2013 8:53am
Quoting juicyt
{quote} Hi Kiads, although we can see your position, can you mark on the picture and/or explain your entry? Thanks, jt

Hi JT.. sorry if i still don't understand DS Zone.. etc. I just learn and overlaying Xixi new indicator to my stoch today and still reading here and there about dis-sim.
but for stoch and bb i already learn long enough for their 'maybe' correlation..lol.
about my position in previous pict.., i take it at Thursday and well that just lucky guess.. i think.. tehee....

this bellow images maybe 'explain' more about 'that' position.


TF : M5
Attached Image (click to enlarge)
Click to Enlarge Name: 20130728-202511 EU M5 25-7 sto-bb-env.jpg Size: 747 KB


TF : M15
Attached Image (click to enlarge)
Click to Enlarge Name: 20130728-202511 EU M15 25-7 sto-bb-env.jpg Size: 702 KB


TF: H1
Attached Image (click to enlarge)
Click to Enlarge Name: 20130728-202511 EU H1 25-7 sto-bb-env.jpg Size: 672 KB



i use:
standard BB (Medium Orchid) with period 18 shift 1 Deviation :1 Apply to Close. level : 0.618, - 0.618 , 1.618, - 1.618
standard stoch (White) with %K period:72 Slowing :1, %D period:1 Price field :Low/High, MA method :Smoothed. Fixed min - 12.5 fixed max : 112.5. level 12.5, 25, 37.5, 50, 62.5, 75, 87.5.
standard envelope (Dodger Blue) overlay to stoch with period:9 shift :1 MA method :Linear Weighted, apply to : Previous indicator data, Deviation : 5%. Level : 1.618, - 1.618, 2.618, -2.618.
That's it.

Hope it help.
Kiads.
  • #116
  • Jul 28, 2013 9:03am Jul 28, 2013 9:03am
Quoting vlady1974
{quote} Let's expand this a bit more. WHAT IS PRICE? For MT4... price is a discrete value.... but actually.... on a charting software. "PRICE" is actually a co-ordinate. X/Y.... x is a nominal value against time. TIME then is your problem. Because Time is relative.... but it defines the price HISTORY. So really.... Dissimilarity is a disruption in the flow of historical trend. Maybe we are wrong... we have to find a way to flatten price into one index to allocate to price? Will dissimilarities at the 5M ripple up into one big dissimilarity in...

Your describing Point and figure/Renko charts. Since these charts do not require Time, its ideal for identifying Support/Resistance.
  • #117
  • Edited 9:37am Jul 28, 2013 9:21am | Edited 9:37am
Quoting almo
{quote} Your describing Point and figure/Renko charts. Since these charts do not require Time, its ideal for identifying Support/Resistance.
I like to trade in the direction of the Renko if I can as I read once that renko candles continue in same direction 79 % of time.

I have attached the PRT charts I was using to trade from last week before i came across the similarity thread. It shows the Renko chart that I keep in front of me. Note the upward trend since 9th July and the fib retracement numbers. Sometimes I trade against it but I am careful.
Attached Image (click to enlarge)
Click to Enlarge Name: last.png Size: 132 KB
  • #118
  • Jul 28, 2013 9:31am Jul 28, 2013 9:31am
Quoting taypot
{quote} I usually only trade in the direction of the Renko if I can as I read once that renko candles continue in same direction 79 % of time

Yees.. LOL...

Attached Image (click to enlarge)
Click to Enlarge Name: 20130728-202511 EU Renko 5 point block 25-7 sto-bb-env.jpg Size: 671 KB
  • #119
  • Jul 28, 2013 9:37am Jul 28, 2013 9:37am
Quoting juicyt
{quote} 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
I think there's no difference between testing environment and realtime.
  • #120
  • Jul 28, 2013 9:41am Jul 28, 2013 9:41am
Quoting almo
{quote} 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.
I'm not sure. MTF maybe a part of the system but nobody know what correct formula is except Eurusdd.
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