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Similarity: A Practical Approach

  • #341
  • Jul 30, 2013 6:05am Jul 30, 2013 6:05am
Quoting vlady1974
1H DS Zone born. Funny how price went down to the bottom of that range prior to being born so basically it can only be cleared from above. Does this imply that prices MUST go higher? 1.33X ?
I have a zone born on V1 but not on V2 yet. Sould be a good zone then right?
  • #342
  • Jul 30, 2013 6:07am Jul 30, 2013 6:07am
Quoting xixi
Hi guys! This is MTF disimilarity indicator which I'm done up to now. Currently, it can draw the "difference" lines only. Dissimilarity zones drawing will be for the next stage. Read indicator's parameters for more info. I may have cut my last hairs to write this one. Please test it. {image} {file}
Thank you! Ill get right to it!
  • #343
  • Jul 30, 2013 6:11am Jul 30, 2013 6:11am
Quoting spufuz
{quote} I have a zone born on V1 but not on V2 yet. Sould be a good zone then right?
I have both born on mine. Actually if I look closely, v1 appears first or is early.
But yes, if v1 shows but not v2, the zone should be good when it appears.
Attached Image (click to enlarge)
Click to Enlarge Name: metatrader 4.png Size: 92 KB
A pip is only worth it if you know how much you risked to earn it
  • #344
  • Jul 30, 2013 6:11am Jul 30, 2013 6:11am
Quoting Dewey McG
Just my opinion about a few things, so take it for what it is worth. Eurusdd gave us a lot to chew on, some of which we can work with now and other information that may have been there to tease us, throw a curve ball or was simply beyond my ability to fully comprehend. I believe in focusing on things I can work with so here are the things I think where we can be productive: 1. The CI method which he used to do 47 trades in a row (or some ridiculous number) without a loss. The draw backs are the CI indicator is unstable. He promised a better one...
Great job, Dewey! Very impressed!
  • #345
  • Jul 30, 2013 6:19am Jul 30, 2013 6:19am
Quoting Effex
Hey guys, Have been playing around with multiple ZZ's from different time frames on one chart and this is what I have found. It seems almost the opposite of Dis sim zones but rather using "Sim zones" instead.... 1. Similarity will at some point occur between the zz's of two different time frames (maybe more TF's as well but have not checked extensively yet) 2. When similarity finishes, a trade could possibly be taken in the OPPOSITE direction of the direction of price DURING the "sim zone" (example - if ZZ leg is down you would buy and if up...
It does correlate. If the ZZTop and Bottom that you've identified on the 5M, corresponds to say 15M and 1H and they are in phase ie. They are all ZZTops then the logical extension of that is SELL. Whether or not you enter on the next bar or at the BBMid is up to each trader.

As for price returning to this point.... welll..... it's harder to say. In your chart's particular case, price went sideways so the return was inevitable. Also, it's 5M so yes, I'd imagine price would return alot. Different story on a trending chart.... you would find that price and stoch stays to one side of the Bollinger and returns to the mid more often. Just something I've observed.

The extension of this is that if you spot a eg. ZZTop and you observe price and/or stoch crossing the BB to the other side and then staying on the opposite side - you may have a counter-trend day. If the price behaves like this and perhaps crosses the 300EMA and the StochBB goes below 50 line .... then you'd have a down direction that should become in phase on all timeframes
A pip is only worth it if you know how much you risked to earn it
  • #346
  • Jul 30, 2013 6:26am Jul 30, 2013 6:26am
Closed some longs on demo.

The discussion on hedging and SL is interesting. On an account this large.... all the trades are without SL. If I have projected a higher timeframe direction, then the trade based on that will stay. But a lower timeframe trade that is opposite direction will also stay.

So if 1H ZZBottom Signal + my Daily Projection is UP.... then trade is LONG. If price is below Day Open... I could enter with a 10pip SL and leave it. If ZZ is wrong, the it will cost me 10 pips. If I trade without SL... then my account is large enough on 1 lot per trade to keep going and enter until a valid ZZBottom. I guess it's like a fade.

I find that the invalid ZZs tend to occur more often on the lower timeframes.... so if you're trading alot at this level (15M, 5M, etc), perhaps a SL is warranted. But if you're trading on 1H or 4H.... well there's only been one ZZ signal per day so far!! Trading in the opposite direction would've been okay!

Just vocalising some thoughts....
A pip is only worth it if you know how much you risked to earn it
  • #347
  • Jul 30, 2013 6:45am Jul 30, 2013 6:45am
Yeaah baby!
A pip is only worth it if you know how much you risked to earn it
  • #348
  • Jul 30, 2013 6:51am Jul 30, 2013 6:51am
Quoting vlady1974
Yeaah baby!
Yes!!
Price just took out two zones on M5 and the one ive been looking at on M15!
By the way did you see that we got dis-similarity again on M15 just after the zone was closed!?
  • #349
  • Jul 30, 2013 6:58am Jul 30, 2013 6:58am

  1. We got new DS on 5M and 15M.. so now they're synchronised. So this unborn zone will definitely be Support.

  1. Dissimilarity ENDED on the 1H about four hours ago.... can anyone explain this then? DS ending in one TF triggers DS on the lower timeframes. The born DS Zone has clearly rejected price and it shot right outside the zone in a northern direction.

  1. Dissimilarity continues on 4H - one can only imagine that if it ends we will see a similar spike/reaction.

  1. Nothing on the Daily... although if you have Ralome's DS Predictor version... I have 2 predicted zones that haven't printed (error in software? dunno) but the next ZZ is definitely gonna be a ZZTop!

A pip is only worth it if you know how much you risked to earn it
  • #350
  • Jul 30, 2013 7:02am Jul 30, 2013 7:02am
[ By the way did you see that we got dis-similarity again on M15 just after the zone was closed!?[/quote]Also on the 5 mins
What you do is a reflection of you....what I do is a reflection of me.
  • #351
  • Jul 30, 2013 7:06am Jul 30, 2013 7:06am
Quoting Baillie
So this is where everyone went... Mind if I join in? Here is a pic of last weeks market with the Stoch Diff Indicator on the 15 min chart, I counted up the bars of DIS similarity and came to a total of 298 bars out of 474 bars for the week. give or take a bar. That is less than 50% Similar. We might want to consider making an adjustment to the indicator(s) to get closer to 90-97% before running too far ahead. {image}
try draw horizontal lines where disim starts, how that looks, post pic of that then

like this, could not see start of the candle, so messy pic, but anyway
Attached Image (click to enlarge)
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  • #352
  • Jul 30, 2013 7:06am Jul 30, 2013 7:06am
Quoting Ezzy
Also on the 5 mins
Thats right. Just noticed that.

Also got dis-similarity at H1 again!
So now I have dis-sim at the same area in three TFs!

To me, it will be very interesting to se if this lead to support OR resistance.
  • #353
  • Jul 30, 2013 7:22am Jul 30, 2013 7:22am
so this is from last week monday
Attached Image (click to enlarge)
Click to Enlarge Name: eurusdm15.png Size: 33 KB
  • #354
  • Jul 30, 2013 7:25am Jul 30, 2013 7:25am
Quoting juhanimi
so this is from last week monday {image}
It implies that whoever gained advantage on the first bar, caused a reaction from the market such that some became sellers and some became buyers, but the point at which the market was in absolute agreement was the LOWEST PRICE of the move.
A pip is only worth it if you know how much you risked to earn it
  • #355
  • Jul 30, 2013 7:27am Jul 30, 2013 7:27am
starts there where arrow is, then draw vertical line and wait price to come there, then do what you think is right, uptrend, maybe buy?
Attached Image (click to enlarge)
Click to Enlarge Name: eurusdm15.png Size: 34 KB
  • #356
  • Jul 30, 2013 7:29am Jul 30, 2013 7:29am
Quoting juhanimi
starts there where arrow is, then draw vertical line and wait price to come there, then do what you think is right, uptrend, maybe buy? {image}
That would atleast follow the principle "Trade away from dis-similarity".
  • #357
  • Jul 30, 2013 7:33am Jul 30, 2013 7:33am
i believe it was here somewhere


http://www.forexfactory.com/showthre...85#post6785885
  • #358
  • Jul 30, 2013 7:34am Jul 30, 2013 7:34am
Quoting spufuz
{quote} That would atleast follow the principle "Trade away from dis-similarity".
But then, that would also mean DS is a Zone of prices. Or is it?

What if we said, if uptrend DS Low is what we trade away from.... and if downtrend, DS High is what we trade away from?
A pip is only worth it if you know how much you risked to earn it
  • #359
  • Jul 30, 2013 7:39am Jul 30, 2013 7:39am
mark open of the candle, uptrend downtrend, mark that price, price should come back to there, wait price come to you, then do what you do, okey, gotta go
  • #360
  • Jul 30, 2013 7:42am Jul 30, 2013 7:42am
have to add this, do not use daily or H4, they are not universal things, H1 and M15 are same everywhere in this planet, maybe
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