I have one at 1.3694. But lots in between.
Sorry, that should read 1.36394
Similarity: A Practical Approach 859 replies
Similarity Trading - The ZZBB Method 215 replies
Rainbow similarity 256 replies
Similarity Stuff 17 replies
Directional Similarity 0 replies
Disliked{quote} Imagine you are buying a house and you are Warrent Buffet. Prices are rising for "The EU" Deluxe, £450K You order 10 of those with a specialist Estate Agent but only if he can secure them at £275K. He comes back and says the supplier will agree on £320K. The order goes on the books. What's the price? EDIT: It doesn't mean the fundamentals have changed either. Buffet (ie. you) is buying because he's researched the area and the fundamentals and he knows he can sell all the units for £1.5M in 25 years. RE-EDIT: LOL The price dropped because...Ignored
Disliked{quote} What ? More than 250 pips ??? Hm.... i can say that your calculation is Wrong .....Ignored
Disliked{quote} 1.3655??? or did you mean 1.3355??? problem is actually at 1.3349 and 1.3343.Ignored
Disliked{quote} Umm, price = 320k? How does this relate to dissimilarity again? LOL My initial guess is that it has something like buying a huge order will actually be able to create a drop in price? (drop in price=dissimilarity -> positions now long ->long?) Sorry for struggling with this, thanks for taking the time to explain it thoughIgnored
Disliked{quote} i think what you are saying is - big players can get better price than the current market price if the dealer they are talking to has inventory to offload and dealer thinks by offloading it in one big chunk, he has less risk of information leakage (mkt finding out his position and run price against him) and thus efficient for him to do a big transaction at a slight discount. however the flaw in this reasoning is that the public price will not drop in this case. The dealer will keep showing original price even when he just sold a big chunk...Ignored
Disliked{quote} I have one at 1.3694. But lots in between. Sorry, that should read 1.36394Ignored
DislikedNewbie Question: Based on the chart setup: {image} I am looking for divergences between the upper and lower charts. So in order to know what's diverging, I'm looking at two things: 1) the relationship between the upper ema1-to-nearest band and 2) the relationship between the lower stoch red line (Main)-to-nearest band. As long as those two relationship remain "similar" (not sure how that quantifies), we think "continuation". However, when those two relationships become dissimilar, we look to enter or exit. Is this correct? What about this is incorrect?...Ignored
Disliked{quote} The house sale analogy is crude but simple. Last sale price was £450K and was rising. Buffet orders 10 bad boys at £320K. That's a price drop on the charts but he was BUYING. The next sale is processed in some other random Estate Agent at £450K. What would that look like on a chart? Buyers = Sellers always. Lower price doesn't mean MORE buyers, nor does Higher price mean MORE sellers. This event (£320K) is a misprice because it is an outlier. Normal price is £450K but someone managed a deal for cheaper. This would be a pin-bar on a Daily....Ignored
Disliked{quote} Of course! I just needed a reasonably simple analogy to show what I mean. LOL I'm sure he would never transact a house purchase like this!Ignored
Disliked{quote} i think your analogy is pretty good ((substitute house with 10mm eur and you got a pretty realistic scenario). but my point is, the fact that large client got a deal on the price will not show up in any of the price feeds shown externally (i.e. external price feeds will not show a lower bid/offer). That big client deal will be just known to that client and the dealer who did it. so it wont show as a pin bar on price graph.Ignored
Disliked{quote} I don't have the best analogy. But it's kind of like Warren Buffet enters a big Long on EU at 3331 and it's so huge that the price dropped. Because he uses FXCM, any indicator will show an imperfection of that price compared to say IGINDEX, IBFX, etc. Because he placed that trade at US Open, the 4H and 1H can probably show it but it will not mean much on the 5M or 1M. Price then shoots up 100 pips. Market goes WTF!? Goldmans, Deutsche, Morgan Stanley etc get wind of the trade and immediately sell a shitload of reserve EUR to get the price...Ignored
Disliked{quote} I see what you're saying. I guess that I am heavily implying that a transaction took place that was big enough to cause a price distortion across all brokers. Should the reason behind the distortion become known, then market forces dictate that price will travel back to that price point to restore equilibrium from the arbitrage move. Edit: What I've never been able to find out in greater detail is if this is misprice is Broker-based or investor/trader based. That's a question for Eurusdd. There was a brief thread about broker-arbitrage....Ignored
Disliked{quote} The house sale analogy is crude but simple. Last sale price was £450K and was rising. Buffet orders 10 bad boys at £320K. That's a price drop on the charts but he was BUYING. The next sale is processed in some other random Estate Agent at £450K. What would that look like on a chart? Buyers = Sellers always. Lower price doesn't mean MORE buyers, nor does Higher price mean MORE sellers. This event (£320K) is a misprice because it is an outlier. Normal price is £450K but someone managed a deal for cheaper. This would be a pin-bar on a Daily....Ignored
DislikedEFFING EU! Lol. Stopped out -10. Re-entered short @ 3406, SL 3412 smaller size. If price back at 3395, will re-enter again with same size to match original order. Target MIDDLE part of range 3375-3380.Ignored
Disliked{quote} i understand the way bank dealers operates (dont ask how) and also how retail brokers make prices. so can answer if there is any specific question via PM. on the forum, i have seen people making all sort of assumptions - some are largely correct while others are totally BS. I do think there is some information content in looking at multi broker price feeds. in fact there are small funds who do just that.Ignored
Disliked{quote} Nice, you booked profit now Vlady ... Edit: at one of your post, you said about "DS" & "DT". DS is the short for "Dis Similarity" ? What is "DT" ? ThanksIgnored
Disliked{quote} Yes, I've covered all shorts for 50 pips net. Yes, DS is Dissimilarity. Can't remember DT... need more context (give me a sentence?) It could be a typo.Ignored