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The similarity system

  • #4,901
  • Aug 19, 2013 3:35am Aug 19, 2013 3:35am
Okay Chappies

Just had a look, still flat but the 1H is the barometer for the day.
The 4H is still there for the week, ie. Need to see a legitimate ZZT (see that post from the past)

The black hole has not been neutralised. Eurusdd is saying mini up... I want it to go to 340X at the very least before I consider shorts.
Attached Image (click to enlarge)
Click to Enlarge Name: EURUSD-1H.PNG Size: 72 KB
A pip is only worth it if you know how much you risked to earn it
  • #4,902
  • Aug 19, 2013 3:35am Aug 19, 2013 3:35am
Quoting blackqn
{quote} Assume that answer is in the thread, so I'll be reading it again and again till I got it.
  • #4,903
  • Aug 19, 2013 3:44am Aug 19, 2013 3:44am
Quoting blackqn
EURUSD please explain the issue with unborn zone passed by proce. I haven't found the answer yet and I need a hint from a master. When preice returns to point where DS staterd condition is done, soe from that time on zone, when it is born, acts as a pure S?R or? How about price attrction then.? I know that we are expected to run away from the zone, but is it still valid after" condition is done"? put some light please, at least help me with focusing on the chart, so I feel better what to look at in order to win cheesgame.
It's a matter of opinion until you find the edge via price corroboration. True proof will be if price behaves the same way across all timeframes.
I haven't found that yet. So my advice still is : prioritize born zones over unborn zones.

So:

  1. Born Zone:

    1. First touch - price rejection
    2. Second touch - price was attracted to it but it could still reject it
    3. Third touch and above - rejection may not happen so don't go contra... just watch as it may clear the entire zone

  2. Unborn Zone

    1. Only look at the DS Bar's Top and Bottom not open/close. The DS Bar represents the point of arbitrage opportunity ie. a big player made a move. Now others are reacting to it. Which means price can't just go through it without turbulence.
    2. But since it's not yet "real" another player could decide "screw that" and take price through it then back to it..... you have to allow for this as Similarity has not yet returned and equalised everything.
    3. Trading:

      1. So if you're trading a position going into the zone... then preprare to exit.
      2. If you're not trading... then just watch it and jump on a trade outside of it.. easier and less risk

Last point of #2..... you can't try and systemise this. You just can't. It's like asking... "How do I know that the market has priced in the XXXXX? And which way will it come from and will it do this"... .err not a chance. Just my humble opinion is all.

A pip is only worth it if you know how much you risked to earn it
  • #4,904
  • Aug 19, 2013 4:01am Aug 19, 2013 4:01am
Thanks Vlady!
Time matters most
  • #4,905
  • Edited 5:24am Aug 19, 2013 5:14am | Edited 5:24am
Opened 2 small Longs @ 45 and 49.
Let's see what happens:

Thoughts:
no daily projection done today, but based on where Asia opened and what London did with it (UP) I think NYC will continue it.
The black hole price of 1.3379 has not been closed.

EDIT:
Put in 3 sell limits at 75 to 80 and set the TP of the longs to 69-75.
Attached Image (click to enlarge)
Click to Enlarge Name: eurusdm5.png Size: 43 KB
A pip is only worth it if you know how much you risked to earn it
  • #4,906
  • Aug 19, 2013 5:42am Aug 19, 2013 5:42am
well I said, we are in a mini-downtrend and it is not complete yet.
  • #4,907
  • Aug 19, 2013 5:49am Aug 19, 2013 5:49am
market seems to be a bit nervous now, under emotions I'd say

EDIT: to be under daily pivot or not to be...
Time matters most
  • #4,908
  • Aug 19, 2013 5:59am Aug 19, 2013 5:59am
We are in a downtrend and it is not complete yet. So, 1.3358 is a resistance level. until this thing is complete any buy will get you stuck....
  • #4,909
  • Aug 19, 2013 6:07am Aug 19, 2013 6:07am
Quoting Eurusdd
We are in a downtrend and it is not complete yet. So, 1.3358 is a resistance level. until this thing is complete any buy will get you stuck....
Can you say how strong is it and how long shall it hold? There is still daily pivot below and it looks that price is looking for easier way.
Time matters most
  • #4,910
  • Aug 19, 2013 6:17am Aug 19, 2013 6:17am
Quoting blackqn
{quote} Can you say how strong is it and how long shall it hold? There is still daily pivot below and it looks that price is looking for easier way.
eurusd has to close above 1.3353 to change trend. But that level is the current resistance.
  • #4,911
  • Aug 19, 2013 6:18am Aug 19, 2013 6:18am
Is this H1 good reason to aim for downmove? both ema and stoch touched BB, but no ZZ arm appeared. I know that this H1 is only a part of wider picture, but trying still to put all parts together and look for some confirmation from these, who got more light

Attached Image (click to enlarge)
Click to Enlarge Name: 0819eurusd.mh1.png Size: 34 KB
Time matters most
  • #4,912
  • Aug 19, 2013 6:21am Aug 19, 2013 6:21am
this drop looks deceptive but it is real. a return to the top is not on the map yet.
  • #4,913
  • Aug 19, 2013 6:25am Aug 19, 2013 6:25am
a serious buy should be considered after eurusd drops and closes below 1.3341.
  • #4,914
  • Aug 19, 2013 6:25am Aug 19, 2013 6:25am
Quoting blackqn
Is this H1 good reason to aim for downmove? both ema and stoch touched BB, but no ZZ arm appeared. I know that this H1 is only a part of wider picture, but trying still to put all parts together and look for some confirmation from these, who got more light {image}
That is the black hole I was referring to. The swing high inside the BB.
You shouldn't expect the sequence to keep on going HI/LO/HI/LO when one of the HI's is not really a HI.

On your chart, the last legitimate top outside of BB is at 3358. The bottom is at 3310ish? So a HI/LO exist requiring a next HI.
but an extra HI out of sequence will need something to cancel it out.

Not a scientifc statement, but from memory, these price discrepancies result in:

HI/LO whiplash of large range - Higher HI that takes out the Black Hole Hi then moves down sharply.
LO/HI whiplash of large range - Lower LO then sudden move to close the Black Hole Hi.
Price avoidance until a better LO builds a stronger bull move to clear the Hi
A pip is only worth it if you know how much you risked to earn it
  • #4,915
  • Aug 19, 2013 6:27am Aug 19, 2013 6:27am
Quoting Eurusdd
a serious buy should be considered after eurusd drops and closes below 1.3341.
Man, don't scare me like that. I closed my longs for +23 pips!
A pip is only worth it if you know how much you risked to earn it
  • #4,916
  • Aug 19, 2013 6:35am Aug 19, 2013 6:35am
Quoting vlady1974
{quote} That is the black hole I was referring to. The swing high inside the BB. You shouldn't expect the sequence to keep on going HI/LO/HI/LO when one of the HI's is not really a HI. On your chart, the last legitimate top outside of BB is at 3358. The bottom is at 3310ish? So a HI/LO exist requiring a next HI. but an extra HI out of sequence will need something to cancel it out. Not a scientifc statement, but from memory, these price discrepancies result in: HI/LO whiplash of large range - Higher HI that takes out the Black Hole Hi then moves...
So even if it passed BB earlier then moved top we do not see it true one since it is not connected directly with BB touch/cross, right?
Time matters most
  • #4,917
  • Aug 19, 2013 6:36am Aug 19, 2013 6:36am
Quoting vlady1974
{quote} Man, don't scare me like that. I closed my longs for +23 pips!
I am not scaring you. EURUSD will only go back to that top from a level below 1.3341.
  • #4,918
  • Aug 19, 2013 6:40am Aug 19, 2013 6:40am
er the last swing low on the 15m is not valid also no?

edit : Dun think it is wise to enter now though...can't tell where she wants to go..i need more training
I want more brain power!
  • #4,919
  • Aug 19, 2013 6:47am Aug 19, 2013 6:47am
One thing i am noticing is that during news releases, the correction is done quickly especially if the dissimilarity has been there for a while.
  • #4,920
  • Aug 19, 2013 6:50am Aug 19, 2013 6:50am
under 1.3341. mark that!!
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