Similarity: A Practical Approach

I hope so too but the move whichever way it goes will be a good lesson

Edit referencing my last picture there appears to be a bullish divergence forming

The 1H is an interesting thing, mainly due to the last swing high.

1. It is a lower high than previous high
2. It closed inside the Bollinger Band, causing an unresolved price vacuum...Black Hole
3. It lingers along 1.33337 which is the line that needs to be broken convincingly for longs.

The last swing low is in a DS zone that needs to be cleared. The 4H shows that the swing lows have previously been on 1.31894. So if 1.33337 is broken, I will look to short at the next opportunity towards this target.

15M also has a black hole.... marked with vertical blue line. Low of 1.3310

For Panamike

Try the StochBB first
One of these does have a glitch with the colours. I use StochBB the most.

Thanks. I really appreciate it.

Vlady,
Do you consider vacuum resolved? The price did not reach there but it was almost close to the previous ZZ top. Also, I see that 1.33337 is broken in ASIA session.

H4, waiting for ZZ top ?? No cobb by price and stoc - Long
H1, ZZ painted a bottom - cobb satisfied - Long
M15, Confused. I think the ZZ top will repaint but might need a swing low to get there.
M5, ZZ top, cobb satisfied waiting for a bottom to test 300 EMA to take long.

Excellent analysis and charts!
Let me give you a fuller answer when I get to work.

Vacuum unresolved at 3379.4


I'm building longs.

Agreed, you guys are doing great work, vlady!

Ah! That's encouraging.

There will come a day when I do this full time when I don't have to do this in between the can, the shower, the grooming, the lunches, the commuting.

Long @ 26, 30, 35, 39

High of 3385, black hole resolved. All longs closed:

+404 pips

Do u mean 210pips

Hi FFPips

This morning's London open fully justifies why I always look at higher timeframes and how the ZZBB method is profitable if understood and then tailored to your personality. Merely following the ZZBB is like hiring Jean Paul Gautier to design you a jacket that is £1mill worth but doesn't fit. It just doesn't work that way.

So you are correct with the direction of your arrows:

H4
was due a ZZT... it has one now. Note, I find it difficult to find a ZZB that repaints on the 4H close.

H1
was tough... it kept repainting. This actually was good because from a non-Similarity point of view, ranging market consolidates in a tight range. It forms triangles or tunnels and other whatnot.... so from a trading point of view, it's a breakout scenario no matter what price level you choose... it doesn't need to be from Similarity Principles.

But SM did provide a target. That Unresolved Price of 3379 was attempted and failed at 3374. Many wanted to short but failed because 3312 and 3326 were strong levels. And how could the 1H create another ZZB when the 4H ZZB was already established.

Probably the biggest help to me in evaluating the 1H was the Daily Projection Method (see my previous posts). I don't use it now to trigger trades, but I still check for the signs.... and the 300EMA is the biggest indicator. Where is price in relation to it now? It's above. But it did dip below and that caused confusion no doubt about it. When it did dip, I employ another trading tip called One Last Kiss.... it means that price never travels in straight lines and if it breaks a barrier it wants to return for one more kiss at that level before continuing. I've called this a few times live and it works 7/10 times. (Never when Bernanke spoke ) In this case, not only did it dip then go for one last kiss... it kissed and cuddled back over the 300EMA.... that's when I knew the unresolved price had to be taken out. It wasn't gonna take minutes or hours... but days to play out... 4 days actually if you go back to the first real top (purple spot) COBB just to the left of it.

Minutes
I've always thought that minutes had to be evaluated differently from hours. It's a different fractal level. Hours refer to base 24. Minutes refer to base 60.
Your chart showed ZZT... tops looking for a new swing bottom. The fractal nature of this is that if the 1M, 5M and 15M produce a deep enough low..... it will create a synchronised ZZB on the Minutes AND the 1H.... That was the key.

Thankfully Eurusdd and one other gave me the right price for the base. I was struggling with this slightly. I had 3305ish 3313ish... But 3326 was the magic number. Can't recal which timeframe but I saw it was the TOP of a DS Zone. Perfecto.


Okay... that should do it. Hope that helps.

P.S. Notes on trading style
My trading style has changed slightly in that I don't worry too much now about drawdowns because of the account size. I play with 2 lots now.
It's a form of fade. So I don't wait till price is at extreme then enter. I get near and enter and continue to enter until it swings back.
I never used to do this. I guess this comes with cash (demo) and confidence. The ZZBB method helps me time the market... I don't chase it. If I see an opportunity and it's in beat... i take it. If I take 20-70 pips I look to cash my chips until the Semafor changes to *3*. If that signal appears on all timeframes.... I AM OUT. 50 pips * 2 lots = 100 pips. If I have 3 of these then I don't have to try and make as much and stress out.... and ultimately that's what it's all about... reducing stress and increasing confidence.

Actually you're right! I keep looking at the net side and forgetting I'm on 2 lots! LOL

Cheers matey

You are an awesome trader friend. So gonna get a relaxing beer or gonna start building the shorts

Thanks mate. I don't mean to be modest... but I'm not yet.

This is still demo but it has taught me some mental lessons. I am treating this like real money. But it's always in the back of mind that it's not.
The real test I can think of is to repeat it. I have 2 targets:

1. Double this demo account to $50K
2. Create a new demo with lower amount $1000 and turn into $10K

If I can do that before by 31st Dec 2013, I will open an account of £5000 sterling... possibly more and trade it live.
So as of 31st July, I'm on a 6 month apprenticeship

In another thread there was a brave Oz soul. He was very confident in his paper trades and planned on doing 11 trade live run.

He closed the shop after 2 live trades. He did not loose his account (only 15% was lost or $35-40). He started fretting about quality of his live trades and then quit live trading . At least publicly he said so.

Great result buddy ..... got good lesson from you ...

Live is always a different kettle of fish.
Broker requirements as well creep in - especially in draw-down situations
And emotionally, there's no comparison.

But I think even if I was 1/4 of the bravado of the current demo account, then I'd look to at least a 1% gain a month as a target. That's modest and doable.
Compounded over 12 months and I would quite my job.