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Similarity: A Practical Approach

  • #821
  • Aug 22, 2013 5:37am Aug 22, 2013 5:37am
My bit on the born zones...

1)If it is the first time price goes to it and a COBB ZZ paints on it, usually price will bounce off it.Set stop to BE when possible if trading this setup as you don't know how far price will run and adjust it as price goes along to lock in profits.

2)Price approaches the zone in the due ZZ direction but the 1ema and stoch still has room from the BB, good chance the zone will be taken out.

3)Price bounces off weakly, be cautious and expect the zone to be taken out gradually.

3a)Price pushes into zone but come out again without clearing it.

3b)ZZ COBB paints inside zone. Expect repaint and gradual zone clear.

Suggestions from me and they are subjective
I want more brain power!
  • #822
  • Aug 22, 2013 5:41am Aug 22, 2013 5:41am
What is COBB?where can I learn these shortcuts?
  • #823
  • Aug 22, 2013 6:35am Aug 22, 2013 6:35am
It means "Close Outside Bollinger Bands". If you read the thread it's all there in black and white on post 814.
  • #824
  • Aug 26, 2013 4:14pm Aug 26, 2013 4:14pm
What happened? Everyone... come back
  • #825
  • Aug 27, 2013 7:52am Aug 27, 2013 7:52am
Market watching and such No worries
I want more brain power!
  • #826
  • Aug 27, 2013 7:57am Aug 27, 2013 7:57am
Hi All,

Just came back from a holiday with the Mrs. All refreshed and ready to go.

I've decided I will create a separate trading journal and a new demo account to start afresh and keep it separate from this discussion which I hope will continue to explore the Similarity Principles and new techniques to make use of the concepts. I'll still be around.
A pip is only worth it if you know how much you risked to earn it
  • #827
  • Aug 27, 2013 9:11am Aug 27, 2013 9:11am
Welcome back vlad - we missed you.
  • #828
  • Aug 27, 2013 9:29am Aug 27, 2013 9:29am
I tell you what, it's a great feeling not seeing charts etc for a total sum of 4 days and 5 nights.

I'm looking at the 1H chart in an almost existential way.... it makes it really easy to read.
Recharging the batteries is highly recommended
A pip is only worth it if you know how much you risked to earn it
  • #829
  • Aug 27, 2013 9:30am Aug 27, 2013 9:30am
Quoting handy148
Welcome back vlad - we missed you.
Thanks Handy!
It's good to be back. No trades today... just easing in. The 1H chart is interesting.
It may be worth not trading this week folks. We're on the knife edge of UP or Down as the 300EMA dances right on 1.33337 where I said last week(s) that it's the key line in the sand. Never mind that it's a magic number 1 and 1/3rd and all that....
A pip is only worth it if you know how much you risked to earn it
  • #830
  • Aug 27, 2013 12:44pm Aug 27, 2013 12:44pm
Things to note :

Price has been returning to the vicinity of 1.3400 and often with force. Big boys loading bullets, market manipulation blah blah blah, come up with your own conspiracy theories.

Painted ZZs are very important. Always check the EMA vs Stoch for a difference in position. These are not always picked up by the indicator but price will almost always return to it.
I want more brain power!
  • #831
  • Aug 28, 2013 2:04am Aug 28, 2013 2:04am
Quoting vlady1974
{quote} That was an amazing post. I get what you mean now. That's one hell of a job! Guys, what do you all think? Is it worth doing? Many months and perhaps more than a year now there was a brilliant trader named Cloggie. Prickly character but he was awesome and he always called levels from like 4 and more years ago. So I think it's worth it.
Well, this idea didn't seem to attract much attention, probably because it was not using one of the indicators outlined by EURUSDD. Well, I have not been able to get this concept out of my mind which led me to re read the original thread from the beginning to see if there was something more to grasp that could have been missed.

And there was, the Stochastic method, it was not even touched by most because of the watch time and too hard to look and see the differences in the two stochastics.
I think this Stochastic concept which EURUSDD introduced has significant and unrealized potential if all the time frames would have representation.

Example:
Stochastic settings
1 min = ?
5 min = 900,1,1
15 min = 300,1,1
30 min = 150,1,1
1 hr = 75,1,1
4 hr = 37.5,1,1 ?
daily = 18.75,1,1 ?

By combine these settings in an indicator to identify Dis Similarity across all time frames on one screen. What do you think?

I think this would be the best and easiest without full disclosure of EURUSDD's complete secret method that we could hope for.
  • #832
  • Aug 28, 2013 3:55am Aug 28, 2013 3:55am
Quoting Baillie
1 min = ?
http://www.forexfactory.com/showthre...84#post6852784 ;-)
Even if you fall on your face, you're still moving forward.
  • #833
  • Aug 28, 2013 3:59am Aug 28, 2013 3:59am
Quoting Baillie
{quote} Well, this idea didn't seem to attract much attention, probably because it was not using one of the indicators outlined by EURUSDD. Well, I have not been able to get this concept out of my mind which led me to re read the original thread from the beginning to see if there was something more to grasp that could have been missed. And there was, the Stochastic method, it was not even touched by most because of the watch time and too hard to look and see the differences in the two stochastics. I think this Stochastic concept which EURUSDD introduced...
Good to see this is still being discussed.
I think we should try and model out how best to visualise or visually represent what a DS actually is.
I personally would be more in favour of a DS that is consistent across all the Minutes and Hours with the min of 5M.
ie. 5M/15M/1H/4H.... if a DS only exists at 15M max (both 5M and 15M) then the indie painted blob should only appear on those timeframes.
if it is across the board, then the blob would exist on the 4H, 1H and minutes whenever you switch tfs in MT4.
A pip is only worth it if you know how much you risked to earn it
  • #834
  • Aug 28, 2013 4:01am Aug 28, 2013 4:01am
Quoting Baillie
{quote} Well, this idea didn't seem to attract much attention, probably because it was not using one of the indicators outlined by EURUSDD. Well, I have not been able to get this concept out of my mind which led me to re read the original thread from the beginning to see if there was something more to grasp that could have been missed. And there was, the Stochastic method, it was not even touched by most because of the watch time and too hard to look and see the differences in the two stochastics. I think this Stochastic concept which EURUSDD introduced...
I think 1500 is used. But that effectively takes it down to a resolution of 3 mintues not 1 minute..... but represented on a 1M chart, if that makes sense. Could be a "good enough" value otherwise you would need to put in 4500.

4500 is the basis of all of it.

4500 / 15M = 300 which was the 1st setting used.
You can't use the 18.75 in a stoch so Daily analysis and above are also out of the question in terms of precision (ie. probably needs another indicator).
A pip is only worth it if you know how much you risked to earn it
  • #835
  • Aug 28, 2013 9:00am Aug 28, 2013 9:00am
Quoting Ralome
{quote} http://www.forexfactory.com/showthre...84#post6852784 ;-)
Thanks, for the point out, I thought it was 4500 from some other post but in keeping with the math this makes more sense.
  • #836
  • Aug 28, 2013 10:39am Aug 28, 2013 10:39am
Quoting vlady1974
{quote} Good to see this is still being discussed. I think we should try and model out how best to visualise or visually represent what a DS actually is. I personally would be more in favour of a DS that is consistent across all the Minutes and Hours with the min of 5M. ie. 5M/15M/1H/4H.... if a DS only exists at 15M max (both 5M and 15M) then the indie painted blob should only appear on those timeframes. if it is across the board, then the blob would exist on the 4H, 1H and minutes whenever you switch tfs in MT4.
I don't think you would have a blob using this method of finding Dis Similarities because the zones could be identified in the stochastic indicator window with a dot, arrow or a line. Similar to Ralome's first indicator without painting the screen.

Also, it could be limited to certain time frames to analyze like 5,15,30,60 min or 15,30,60,240..... a minimum of 4 tf's would be best.

As far as being something proven or unproven it was recommended by EURUSDD as a viable tool to use with as he claims, a 90% method with only 2 time frames. I hope someone with skill would take the challenge to at least see if this proves to be a better or more accurate way to identify these zones.
  • #837
  • Sep 4, 2013 12:10pm Sep 4, 2013 12:10pm
Hi Guys, this thread has gone quiet which is a shame, but I have now moved house and ready to check this out more. I have been doing things a little differently and have built indicators for Prorealtime that record a slight difference between the movement of the MA1 and stoch. I don't bother using these on any chart but compile them into one indicator that I have called FIGHT that gives a score of 1 for each disimmilarity and adds them together. This works as a bar chart below and during trading I sometimes see it flash up to a high number then it may disappear or stay. It can't be backtested as it disappears but it can be set to trigger a warning alert. This indicates a fight/reversal to me as there has been a sudden disimilarity across many stoch values (such as 1,3,5,15,30,60,120,240,480,960). I certainly don't ignore it. If there are no bars it marks a trend and I can relax. Simple and effective!

I have also built diff dissim zones to appear one chart but its rather simple as only the last zone shows for each stoch value until it changes. Zones seem to form supp and res quite well. You can just see one on the image attached but on some charrts there are a few and if they overlap they may be more relevant. Old zones, whether completed or not, don't show if a new one forms for that stoch value. I haven't paid much attention to these zones yet but FIGHT works well

Reckon one of you MT4 coders can build the Fight MT4 easily.

i have attached an image of a tick chart. You can see a position that i have just closed most of because a high spike shot up a couple of bars back (NOW DISAPPEARED) and the market reversed. I was able to close at the high! What an edge.

I am now looking at using the CCI instead of stoch.
Attached Image (click to enlarge)
Click to Enlarge Name: now.png Size: 180 KB
  • #838
  • Sep 4, 2013 3:23pm Sep 4, 2013 3:23pm
Quoting taypot
Hi Guys, this thread has gone quiet which is a shame, but I have now moved house and ready to check this out more. I have been doing things a little differently and have built indicators for Prorealtime that record a slight difference between the movement of the MA1 and stoch. I don't bother using these on any chart but compile them into one indicator that I have called FIGHT that gives a score of 1 for each disimmilarity and adds them together. This works as a bar chart below and during trading I sometimes see it flash up to a high number then...
Grats on the new place. Will be interested to see how well cci works on your platform. For mt4 it works wonders for some while for others terribly
I want more brain power!
  • #839
  • Sep 5, 2013 6:00am Sep 5, 2013 6:00am
Quoting taypot
Hi Guys, this thread has gone quiet which is a shame, but I have now moved house and ready to check this out more. I have been doing things a little differently and have built indicators for Prorealtime that record a slight difference between the movement of the MA1 and stoch. I don't bother using these on any chart but compile them into one indicator that I have called FIGHT that gives a score of 1 for each disimmilarity and adds them together. This works as a bar chart below and during trading I sometimes see it flash up to a high number then...
Hey Taypot, hope this works out for you.
Perhaps when you get the CCI working just right you can teach that baby to me
My Attempt #2 on ZZBB has been quite dramatic and showing up my poor trading skills . Just survived this morning's mega whiplash move. LOL
Anyways, hope your well mate. Congrats on the house move. We're undergoing a renovation ourselves on a property we hope to sell.... almost there but major cause of stress.

Cheers bro!
A pip is only worth it if you know how much you risked to earn it
  • #840
  • Sep 10, 2013 3:30pm Sep 10, 2013 3:30pm
Why not try two Bolinger Bands:
BB1 -> 10,3
BB2 -> 20,3

Enter on touch of outer band.
Or even better: look for "Better Bollinger Bands" with similar param.

G.
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