The similarity system

My eyes hurt from so much reading. Hopefully tomorrow what I`ve read will sink in. Until then everyone have a wonderful Thursday trading session.

I saw yesterday dissim at 1.3382 and 1.3402, which got hit and I still see one on 1.3342, that is why i hada shortfrom 1.3402 to 1.3342 which is still open and I am wondering if it is a wise idea to close the trade... Eurusdd are you still looking for a resume to the upside after the downmove is over?

Hi Eurusdd,
May i know the platform that can have 24 TFs ?
Thanks

Morning All!

something I was looking at this morning, playing with Exp Moving Averages. I have 1H on the left EMA 4, the right is 30M with EMA 8. Notice the blimp at 3378-3382.

Also notice how the EMA stays centre of price action, and all the highs and lows stick out like centipede legs. One could argue that the average is the real trend whilst the price action is the arbitrage market movements of buyers and sellers.

When price action moves above the EMA it's obviously a Long, but then it goes short and heads back into the EMA. This is very similar to the Bollinger Band effect, where extreme pricing reaches a maximum at one point in time.

What I'm getting at is the phenomenon of returning prices. This is why Fibonacci and Gann is useful. It's also what Gator uses for his numbers which are simple 1/2 and 1/4 of a move projected outwards.

So if you spot a Dissimilarity in the past, and you can see where price is now.... What would price have to do in order to return to that point? Do you think it will return like a curved line or will it behave violently first before returning? What time of day is price more likely to be volatile? What market events, scheduled or otherwise, could cause volatility?

Just putting this out there so that you can see how Similarity can help you think about EU in context of your own trading style. You don't have to KNOW how to get the same numbers as Eurusdd's....but if you did, how would you trade it based on where price is now?

BTW his query about stop plots placement and Price Time is directly related to the EMA example above. When price host 3412 yesterday - I shorted at 3407...why? Where was price averaging before that....3350-3360, price prints 3415....and the price starts slowing down, how many times was that likely to happen today......once! Stop Loss! = Entry point.

Hey vlady1974. You did that because you already had a reason to look for target below the level. What if price does not go back ?

TODAY!! SIMILARITY WILL RULE!

Thanks subscribers and contributors to this thread!!!

A buy is cooking!

1.33536 is an UPTREND pivot point. So buy at or under it!!! It is cooking!

But one may ask what is the target for today

The DOWN has a little bit to go. BUT GET READY TO lock in the uptrend!

1.3347 IS not the tRUe LOW

You mean you expect a LL before it goes higher?

EURUSD is going to go up BUT for the final move towards uptrend, eurusd has to go under 1.3347 first. So, just like yesterday, look for a sell in the coming UP!!!

Right now, this temporary up is sealed with 1.3347 as the low. But 1.3347 is a problem and eurusd will return back to it!

Very good appreciation Vlady1974,
thank you very much

Way to go...