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Similarity: A Practical Approach

  • #581
  • Aug 5, 2013 4:00am Aug 5, 2013 4:00am
Quoting Dewey McG
EA is posted here: http://www.stevehopwoodforex.com/php...php?f=5&t=2886 Anyone who has been in ForexFactory very long knows who Steve Hopwood is. He was kind enough to code the EA so I am asking anyone who wants it to get it from his forum. Steve is not known for suffering fools gladly so make sure you read post one thoroughly before asking any questions there
Congratulations and well done McG!
Will check it out and see how it flows
A pip is only worth it if you know how much you risked to earn it
  • #582
  • Aug 5, 2013 4:02am Aug 5, 2013 4:02am
Looking like an UP day today.
Hope you know why now
A pip is only worth it if you know how much you risked to earn it
  • #583
  • Aug 5, 2013 4:32am Aug 5, 2013 4:32am
Quoting Robertk
{quote} That being said, isn't it the same principle as for example a 15m volume climax bar taking place within a 60m non climax candle? As climaxes often distort equilibrium. Somehow I think I am missing something here as underlying shorter TF momentum spikes below higher TF candles is a very ancient concept? What is so new and refreshing about this, why is it hyped in the first place
I think it goes beyond this, RobertK. But as a non-mathematician, the glory of what "similiarity/dissimilarity" is lost on me slightly.
Yes, you are describing a fractal type event and this "method" isn't the first to point this out. But this post from FXWrangler
Quoting FXWrangler
Post 4757 on the Original Thread
is probably more in tune with Eurusdd's original intention. I'll leave it there.

Just remember though, since the start of the original thread by Eurusdd, he has been able to demonstrate initially the concepts on 2 different pairs of indicators. That's what is "unique", ie. showing the principle in action to us mere mortals.

I wouldn't say it's been hyped up at all. Perhaps in terms of Forum behaviour, then yes I agree with you - as people validate the concept and then gather around discussions/questions/answers/etc then ultimately get fever pitch and excitement. But in the cold light of day, it's still just a principle.
A pip is only worth it if you know how much you risked to earn it
  • #584
  • Aug 5, 2013 6:05am Aug 5, 2013 6:05am
Hello, I just noticed this new thread, democracy

Ralome, I have actually question about indi. I understand the reason for quasi-dissimilarity as breaking through the 300 candle range border, but I haven't noticed a clue why it has return to similarity after 24 candles? Or silly me mixed-up something after re-reading the whole 240 pages...

Cheers
Time matters most
  • #585
  • Aug 5, 2013 11:12am Aug 5, 2013 11:12am
Quoting vlady1974
{quote} I think it goes beyond this, RobertK. But as a non-mathematician, the glory of what "similiarity/dissimilarity" is lost on me slightly. Yes, you are describing a fractal type event and this "method" isn't the first to point this out. But this post from FXWrangler {quote} is probably more in tune with Eurusdd's original intention. I'll leave it there. Just remember though, since the start of the original thread by Eurusdd, he has been able to demonstrate initially the concepts on 2 different pairs of indicators. That's what is "unique",...
Hello my friend how goes your day? I agree with you and what Wrangler said. If anything, the "new" perspective it has made trading more enjoyable well for me at least. I no complaints with the better win/loss ratio either
I want more brain power!
  • #586
  • Aug 5, 2013 11:17am Aug 5, 2013 11:17am
Quoting cfdtaleong
{quote} Hello my friend how goes your day? I agree with you and what Wrangler said. If anything, the "new" perspective it has made trading more enjoyable well for me at least. I no complaints with the better win/loss ratio either
Very quiet today. I predicted this morning that it would be an UP day based on current ZZ swing expectation on the 1H and 15M.
This could be wrong today. It's hard when a swing bottom appears in Asia so you naturally think that a top could happen today.... but if it happens very soon like it did today, then a bottom forming towards the end of the day is not going to have enough momentum to go back up. ATM there's no tool for me to make this call earlier in the day.

Anyway, that's just making a daily projection. Still managed to get 50 demo pips based on 1M / 5M and 15M swings off the last bottom before London Close.
I've set myself 2 targets: If I can get this demo account to $50K, I'll open another $5K demo and repeat it.... this should take possibly 2 months. If I am successful, I will top up an account and do it for real using only this technique and nothing else.
A pip is only worth it if you know how much you risked to earn it
  • #587
  • Aug 5, 2013 11:39am Aug 5, 2013 11:39am
Quoting vlady1974
{quote} Very quiet today. I predicted this morning that it would be an UP day based on current ZZ swing expectation on the 1H and 15M. This could be wrong today. It's hard when a swing bottom appears in Asia so you naturally think that a top could happen today.... but if it happens very soon like it did today, then a bottom forming towards the end of the day is not going to have enough momentum to go back up. ATM there's no tool for me to make this call earlier in the day. Anyway, that's just making a daily projection. Still managed to get 50 demo...
I think you will be given the win/loss ratios thus far
I want more brain power!
  • #588
  • Aug 5, 2013 4:07pm Aug 5, 2013 4:07pm
Quoting Dewey McG
EA is posted here: http://www.stevehopwoodforex.com/php...php?f=5&t=2886 Anyone who has been in ForexFactory very long knows who Steve Hopwood is. He was kind enough to code the EA so I am asking anyone who wants it to get it from his forum. Steve is not known for suffering fools gladly so make sure you read post one thoroughly before asking any questions there

Great stuff Dewey and also to Steve for doing this! I am not a big EA trader, but very interested to see where this goes so thanks, I will run this soon

Thanks again - happy pipping.
  • #589
  • Edited Aug 6, 2013 12:47am Aug 5, 2013 10:18pm | Edited Aug 6, 2013 12:47am
Quoting Me3w
{quote} Is the following manual desimilarities correct ? Also take note the rejection to the Yesterday's Low {image}
This is what my view - The zone draw on Aug 2nd extended to Aug 5th.
If i trade, will consider to trade from the double top to the Sim location.
Attached Image (click to enlarge)
Click to Enlarge Name: EU_130805.jpg Size: 584 KB
  • #590
  • Aug 6, 2013 2:10am Aug 6, 2013 2:10am
Quoting blackqn
Hello, I just noticed this new thread, democracy Ralome, I have actually question about indi. I understand the reason for quasi-dissimilarity as breaking through the 300 candle range border, but I haven't noticed a clue why it has return to similarity after 24 candles? Or silly me mixed-up something after re-reading the whole 240 pages... Cheers
The dissimilarity "shows up" in a candle. This is what we call dissimilarity candle. When this candle appears, it will be included in the calculation for the BB's. But after 24 candles (or whatever you set BBPeriod to), that dissimilarity candle will drop out from the BB calculation range. So that is why we return to similarity after 24 candles, UNLESS another dissimilarity shows up. Then it's another 24 candles from that point.
Even if you fall on your face, you're still moving forward.
  • #591
  • Aug 6, 2013 3:48am Aug 6, 2013 3:48am
Forecast for today is UP.
The 1H shows a potential "black hole" where a ZZTOP has formed but inside the BB and therefore unresolved. The "Black Hole" would therefore attract price into the range and either cause an extreme hi or lo. The last time this happened we saw 100+ pip ranges. Anyway, lookout for action at 1.3300 - nice number for a black hole.

On smaller timeframe, have used the 15M to navigate a trade from a ZZBottom. This means it's a long looking for the next swing high for exit or stop move.
Nowadays, I look for synchronicity between 1M, 5M and 15M to time my trades.... it's easier visually. This means:

TF
15M Last Swing = LO
05M Last Swing = HI
01M Last Swing = LO

The general 15 Minute trend is now hi (ie. I'm looking for a long if price is close to low and riding it to HI)
But if I'm not in a trade and looking to enter, I will wait until the 5M posts a LO and the 1M also posts a LO. There is still a risk that it will repaint - ie. price has not finished.... but the 15M should tell me whether price is at BBMid or not, which is where I would put an SL.

It also helps that there is a DS zone acting as support on the 5M tf, so also took that with confidence.

Anyway, got some time this morning at work so here are the charts. Good luck and green pips (real or demo)!
Attached Image(s) (click to enlarge)
Click to Enlarge Name: eurusdh1.png Size: 56 KB
Click to Enlarge Name: metatrader 4.png Size: 117 KB
A pip is only worth it if you know how much you risked to earn it
  • #592
  • Aug 6, 2013 4:08am Aug 6, 2013 4:08am
Out at 15M ZZTop = Semafor or ZigZag. Signal was also present on 1M and 5M.
+70.0 pips (not 700 pips, for you newbies!)

Quoting vlady1974
Forecast for today is UP. The 1H shows a potential "black hole" where a ZZTOP has formed but inside the BB and therefore unresolved. The "Black Hole" would therefore attract price into the range and either cause an extreme hi or lo. The last time this happened we saw 100+ pip ranges. Anyway, lookout for action at 1.3300 - nice number for a black hole. On smaller timeframe, have used the 15M to navigate a trade from a ZZBottom. This means it's a long looking for the next swing high for exit or stop move. Nowadays, I look for synchronicity between...
A pip is only worth it if you know how much you risked to earn it
  • #593
  • Aug 6, 2013 5:32am Aug 6, 2013 5:32am
Condition is almost done Hopefully can trap shorts during the us session
I want more brain power!
  • #594
  • Aug 6, 2013 6:10am Aug 6, 2013 6:10am
Quoting cfdtaleong
Condition is almost done Hopefully can trap shorts during the us session
Took some scalping shorts off 1.328x
Ralome's v.2.6 indicator is great for predicting when DS may end.... uncanily, it timed with the German news at 11am and the spike dropped for a short signal confirmation. Just exited now.

Got some Buy limits a little bit lower near the Daily Pivot, let's see if they get triggered.
A pip is only worth it if you know how much you risked to earn it
  • #595
  • Aug 6, 2013 6:28am Aug 6, 2013 6:28am
Quoting vlady1974
{quote} Took some scalping shorts off 1.328x Ralome's v.2.6 indicator is great for predicting when DS may end.... uncanily, it timed with the German news at 11am and the spike dropped for a short signal confirmation. Just exited now. Got some Buy limits a little bit lower near the Daily Pivot, let's see if they get triggered.
2 of these have been triggered. 1 more remaining.
The 15M and 5M still need to resolve to a bottom on the ZZ/Semafor.
These prices coincide with Daily Pivot. I still think that 1.33XX will be revisited if not today then definitely this week.

EDIT:
Notice how Ralome's indicator is predicting DS start/end on the 1M and 5M... they don't always turn out correct but they help you time your visual scanning of price action.

Another trick I can share based on Eurusdd's later notes.... on the 15M, notice how the amount of dissimilarity reduced to zero just before the DS zone ended.
Only after that does price move away from the top, confirming it. Eurusdd mentioned that when price is at zero it will produce an extreme, as well as when the difference makes a peak. But the ZERO value is alot more reliable.
Attached Image (click to enlarge)
Click to Enlarge Name: metatrader 4.png Size: 109 KB
A pip is only worth it if you know how much you risked to earn it
  • #596
  • Aug 6, 2013 6:41am Aug 6, 2013 6:41am
Quoting vlady1974
{quote} Took some scalping shorts off 1.328x Ralome's v.2.6 indicator is great for predicting when DS may end.... uncanily, it timed with the German news at 11am and the spike dropped for a short signal confirmation. Just exited now. Got some Buy limits a little bit lower near the Daily Pivot, let's see if they get triggered.
..Good scalp trade it's been trying to break and stay above 1.3280 level for almost two weeks now if you zoom out you can see there is a problem at this level.Good luck
  • #597
  • Aug 6, 2013 7:48am Aug 6, 2013 7:48am
Ok you bulls had your fun...time for beef!
I want more brain power!
  • #598
  • Aug 6, 2013 8:14am Aug 6, 2013 8:14am
Black Hole anomaly @ 1.3300 cleared (Blue Line at #2 Semafor in purple).
Should be safe to either keep going up or move for a ZZBottom.
Given that we'll get FOMC news tonight, I'm gonna bet that prices go higher before a fall.

EDIT:
162.10 pips today just on BBSTOCH method and casual usage of DS Zones and Ralome's predictor indicator.

Gonna try and get some time to keep doing the 2012 full year backtest of daily predictions tonight, but I may not get this done until next week. I'm really interested to see how it comes out raw and what tweaks we can add to bring up the success rate.
Attached Image (click to enlarge)
Click to Enlarge Name: eurusdh1.png Size: 70 KB
A pip is only worth it if you know how much you risked to earn it
  • #599
  • Aug 6, 2013 8:22am Aug 6, 2013 8:22am
Quoting stunna29
{quote} ..Good scalp trade it's been trying to break and stay above 1.3280 level for almost two weeks now if you zoom out you can see there is a problem at this level.Good luck
The 1H has been the best long range timeframe for seeing the resolution of longer term zones (as you can see from some of my screenshots).
Overall, 1.3300 is a key level and significant sentiment has to either change or continue to move away from this range of prices.

This is where the DS Zones are helping create further clarity. The zone are representing the key areas of dissent among bigger players. it's also been suggested that tick volume MFI can help visualise the entry and exit points of these players. This is a different way to look at Support and Resistance. They're not just static prices. They are a dynamic representation of supply/demand forces.
A pip is only worth it if you know how much you risked to earn it
  • #600
  • Aug 6, 2013 8:23am Aug 6, 2013 8:23am
Quoting vlady1974
Black Hole anomaly @ 1.3300 cleared (Blue Line at #2 Semafor in purple). Should be safe to either keep going up or move for a ZZBottom. Given that we'll get FOMC news tonight, I'm gonna bet that prices go higher before a fall. EDIT: 162.10 pips today just on BBSTOCH method and casual usage of DS Zones and Ralome's predictor indicator. Gonna try and get some time to keep doing the 2012 full year backtest of daily predictions tonight, but I may not get this done until next week. I'm really interested to see how it comes out raw and what tweaks we...
Actually price is ranging. Show us your backtest when price is trending : very usefull. Thanks !
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