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Similarity: A Practical Approach

  • #121
  • Jul 28, 2013 9:45am Jul 28, 2013 9:45am
Quoting xixi
{quote} I'm not sure. MTF maybe a part of the system but nobody know what correct formula is except Eurusdd.
I don't think there is a "correct" formula. We are looking at concepts. EURUSDD has built himself a way to define DZ in the manner to his liking. I am thinking there is more than one way to do this. The anomaly we are looking for is in price flow. That signifies change. When price goes back to similarity, that signifies continuation. When the market goes back to change, it is going to head for the last DZ. That is the theory anyways, to my limited mind.
If you are good at something, never do it for free--Joker
  • #122
  • Jul 28, 2013 9:54am Jul 28, 2013 9:54am
Quoting jmn5611
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? {image}
Do you mean MTF DZ indicator is similar with the indicator at the corner in the chart which will let we know at the moment we are in a sim or dis-sim zone on other TFs? I think such an indicator is code-able.
  • #123
  • Jul 28, 2013 9:54am Jul 28, 2013 9:54am
I think what we need to do is to find dissimilarity at the same time on all time frames(5min, 15min, 1H, 4H, 8H, 1D). We first find what stoch setting on the 15mins will correspond or give the same value as the stoch on the 1hr TF and what 1hr setting will correspond to the 4hr TF. If all the TFs are all in sync then dissimilarity should appear at the same.
  • #124
  • Jul 28, 2013 10:02am Jul 28, 2013 10:02am
Quoting xixi
{quote} Do you mean MTF DZ indicator is similar with the indicator at the corner in the chart which will let we know at the moment we are in a sim or dis-sim zone on other TFs? I think such an indicator is code-able.
Yes, exactly. If we can see sim/dissim zones in that way, we can analyse charts in a glance, and be confident when we take the trades towards the target.
If you are good at something, never do it for free--Joker
  • #125
  • Jul 28, 2013 10:06am Jul 28, 2013 10:06am
Attached Image (click to enlarge)
Click to Enlarge Name: oanda - metatraderp.png Size: 165 KB


Dissimilarity occurring at the same time on two TFs
  • #126
  • Jul 28, 2013 10:10am Jul 28, 2013 10:10am
Quoting angelofx
I think what we need to do is to find dissimilarity at the same time on all time frames(5min, 15min, 1H, 4H, 8H, 1D). We first find what stoch setting on the 15mins will correspond or give the same value as the stoch on the 1hr TF and what 1hr setting will correspond to the 4hr TF. If all the TFs are all in sync then dissimilarity should appear at the same.
Yep, the thinktank seems to be on the same page. The coders are working on something I think. Until they finish, us mortals will have to do it by hand. Again, there is more than one way, so if you have a way to get there, feel free to contribute.
If you are good at something, never do it for free--Joker
  • #127
  • Jul 28, 2013 10:11am Jul 28, 2013 10:11am
Quoting angelofx
{image} Dissimilarity occurring at the same time on two TFs
That's great! Now according to EURUSDD that makes for a great target. If I misstep, let me know.
If you are good at something, never do it for free--Joker
  • #128
  • Jul 28, 2013 10:14am Jul 28, 2013 10:14am
Quoting jmn5611
{quote} That's great! Now according to EURUSDD that makes for a great target. If I misstep, let me know.

I think he said it's better to trade away from it, for our level of experience. What i know is that the zone acts as support/ resistance.
  • #129
  • Jul 28, 2013 10:16am Jul 28, 2013 10:16am
Quoting xixi
{quote} Do you mean MTF DZ indicator is similar with the indicator at the corner in the chart which will let we know at the moment we are in a sim or dis-sim zone on other TFs? I think such an indicator is code-able.
btw xixi, as soon I get my fourth vouch, you will most certainly get your seventh. Thank you for being the coder on this thread that is speaking up and participating. I have noticed that every good thread here at FF has at least one good coder, who turns ideas into indicators. The original thread has Ralome, and we have you, so again, thank you very much!
If you are good at something, never do it for free--Joker
  • #130
  • Jul 28, 2013 10:17am Jul 28, 2013 10:17am
Quoting angelofx
{quote} I think he said it's better to trade away from it, for our level of experience. What i know is that the zone acts as support/ resistance.
Okay, my understanding was that price will return to the DZ to correct the "error". This thread is a democracy, so we can do it both ways and see what works!
If you are good at something, never do it for free--Joker
  • #131
  • Jul 28, 2013 10:18am Jul 28, 2013 10:18am
For the chart i posted above, 300 Stoch on 15mins is equivalent to 75 stoch on the 1hr TF so we need to find the values for other TFs.
  • #132
  • Jul 28, 2013 10:20am Jul 28, 2013 10:20am
Quoting jmn5611
{quote} Okay, my understanding was that price will return to the DZ to correct the "error". This thread is a democracy, so we can do it both ways and see what works!
You are correct. But the the thing is, we don't know when. There are zones that have not been taken out for more than one week, i think they also have lifespan.
  • #133
  • Jul 28, 2013 10:21am Jul 28, 2013 10:21am
Quoting jmn5611
{quote} Yes, exactly. If we can see sim/dissim zones in that way, we can analyse charts in a glance, and be confident when we take the trades towards the target.
What I'm figuring out for a MTF DS indicator is similar with the current one but it could display zones of other timeframes as well on the same chart. I think it could be more useful to help us see the zones in history, not just at a moment as the "corner" indicator.
  • #134
  • Jul 28, 2013 10:25am Jul 28, 2013 10:25am
Quoting xixi
{quote} What I'm figuring out for a MTF DS indicator is similar with the current one but it could display zones of other timeframes as well on the same chart. I think it could be more useful to help us see the zones in history, not just at a moment as the "corner" indicator.
Okay, great! The more tools the better!
If you are good at something, never do it for free--Joker
  • #135
  • Jul 28, 2013 10:31am Jul 28, 2013 10:31am
Thanks Madmoney! Feel free to post and let us know how we are doing over here. I think we have come quite far, and the market has not even opened yet. That is the true power of positive collaboration.
If you are good at something, never do it for free--Joker
  • #136
  • Jul 28, 2013 10:32am Jul 28, 2013 10:32am
Quoting jmn5611
{quote} btw xixi, as soon I get my fourth vouch, you will most certainly get your seventh. Thank you for being the coder on this thread that is speaking up and participating. I have noticed that every good thread here at FF has at least one good coder, who turns ideas into indicators. The original thread has Ralome, and we have you, so again, thank you very much!
we're here to share and contribute as our own ways so that we all benefit.
I'll try to code the indicator and let you guys know.
  • #137
  • Jul 28, 2013 10:34am Jul 28, 2013 10:34am
Quoting jmn5611
Thanks Madmoney! Feel free to post and let us know how we are doing over here. I think we have come quite far, and the market has not even opened yet. That is the true power of positive collaboration.
Great thread keep up the good wrk guys!!!

I am currently testing many things and will share once finished....

you get my vouch mate
  • #138
  • Jul 28, 2013 10:35am Jul 28, 2013 10:35am
Quoting angelofx
{quote} You are correct. But the the thing is, we don't know when. There are zones that have not been taken out for more than one week, i think they also have lifespan.
They have a 14 day lifespan. After that, the probability of them being viable targets falls off the cliff, according to EURUSDD. There is something like a 90% probability that they will be taken out within 14 days.

Even if we do not know when, if we follow the rules we have set for ourselves so far, our R/R ratio should put us in a good place.
If you are good at something, never do it for free--Joker
  • #139
  • Jul 28, 2013 10:37am Jul 28, 2013 10:37am
Quoting josh11
{quote} Great thread keep up the good wrk guys!!! I am currently testing many things and will share once finished.... you get my vouch mate
Thanks josh! We are definitely on the trail now.
If you are good at something, never do it for free--Joker
  • #140
  • Jul 28, 2013 10:42am Jul 28, 2013 10:42am
This may help with converting indy settings to different timeframes.
Attached File(s)
File Type: xls PARAMETER CONVERTER V1.0-deforexcodex.xls   14 KB | 485 downloads
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