The similarity system | Page 292 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

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

Attachments: The similarity system
Exit Attachments

The similarity system

  • #5,821
  • Aug 16, 2014 12:56pm Aug 16, 2014 12:56pm
Quoting Eurusdd
{quote} No!! focus on the zone price is concerned with. the current price should guide you. The whole thing is simply. This and the DNA are the two tools one needs to develop revolution! I gave you people just the idea. You can modify it the way you want. But there are even more powerful things. That i keep for heaven. Nice weekend.
I love revolution!! thanks EURUSDD!
  • #5,822
  • Aug 16, 2014 1:12pm Aug 16, 2014 1:12pm
Quoting vector0
{quote} hello all, am i right in assuming that Proposition 1 http://www.forexfactory.com/attachment.php?attachmentid=1491112&d=1408196176 is only valid for markets that tends to moves in ranges? and that transient prices are harder to find in higher TFs?
From the looks of it, the proposition 1 appears to be correct. The problem is just that the involved positive integers could be quite large in case of a trending market... See below a possible "black swan event" for EURUSD on H1 chart.
Attached Image (click to enlarge)
Click to Enlarge Name: trending_market.jpg Size: 126 KB
  • #5,823
  • Aug 16, 2014 1:29pm Aug 16, 2014 1:29pm
Quoting tbird2121
{quote} Hi LiquidGenius, At your last image, do you use "5" as "h" ? The value "5" is a must ( in term of "optimized" ) ? Thanks Edit : Can you explain the Yellow Box i marked ? is it valid ? hm... seeing this result, i remember of optimized ZZ {image}
I'm using 5 because that's the example that eurusdd provided. The yellow box, which I suppose you could say is a half box, is not valid. There is, however, something to learn from it. It verifies something. SHHHHHH.
"Mrrraggglhlhghghlgh"
  • #5,824
  • Aug 16, 2014 1:29pm Aug 16, 2014 1:29pm
Quoting Eurusdd
{quote} You are wrong. You do not know if that region is transient or recurrent yet because it is still forming. What you do though is wait. The moment price goes above that region, you can assume it is transient and then prices very close above it recurrent. Those prices are the ones you will expect a re-visit within at least one of the remaining h bars.
Thanks EURUSDD, i was thinking that since we don't know yet if the zone is Transient or Reccurent and "Now, if you get the h and k right, you will find that transient price-zone occur with very LOW -probability" then there is a good probability that the zone will be a Reccurent one and therefore be revisited by the price.
the market is not random but anything can happen.
  • #5,825
  • Aug 16, 2014 2:07pm Aug 16, 2014 2:07pm
"k" and "h" must meet the condition "X (t)- k, X (t)+ k"?
thus there are two variables and two equations to solve the system. That's right ??
  • #5,826
  • Edited 3:54pm Aug 16, 2014 3:43pm | Edited 3:54pm
I spoke (or thought?) slightly too early yesterday. Oops. I guess that's what happens when you're really eager hah.

I'm still working on the concepts but if anyone is looking for a hint or a tip, I'll give you the obvious one that eurusdd will likely back me on. Do your research! I've always been a visual and hands-on learner. The indi posted is a really great and simple tool to point out the transient bars (which I call box bars because I'm not very fancy. Perhaps when I make it, my vocabulary will increase as well heh). I do like to put in the zones myself, and then make observations. Observe, hypothesize, then take the numbers elsewhere to verify what you thought you saw (excel for me). Excel, like most programming, is just a' function' when you use it properly. Ask it a question, and it gives you an answer. But watching the transient bars and what occurs in those areas in a chart is really where the questions come from. So go play!


The below is output for the probability that a transient bar is followed by another transient bar within Delta bars. Not quite ideal, (also could run into opportunity issues) but as always, will be working on it (:
Attached Image
"Mrrraggglhlhghghlgh"
  • #5,827
  • Aug 16, 2014 4:11pm Aug 16, 2014 4:11pm
nice thread,like the math and phyci here ..anyway u can use this algo http://upload.wikimedia.org/math/6/d...f5e5c466fd.png

as known as" Boltzmann equation"

its will help u to figure out where the price will be in future..

GL .
when GOD brings you a challenge he also gives you the power to deal with it
  • #5,828
  • Aug 16, 2014 4:30pm Aug 16, 2014 4:30pm
Quoting eitan1010
nice thread,like the math and phyci here ..anyway u can use this algo {image} as known as" Boltzmann equation" its will help u to figure out where the price will be in future.. GL .
:nerd:
Neural Network Algorithm and Econophysics
  • #5,829
  • Aug 16, 2014 5:18pm Aug 16, 2014 5:18pm
Quoting hepsibah
This is getting very interesting! I've attached an indicator (public domain) which should be useful in playing around with different settings for 'h'. It's a fractal indicator where you can choose how many bars go to make up the fractal e.g. if you want 7 bars on either side, set the total = 15 and those on either side = 7. I have used these settings in the example on the M5 chart but this is in no way a recommendation, I haven't had time to play about with it yet to find the optimum. In the example a few things come to light.
Firstly thanks so much for putting up the file. It's been quite helpful in helping me advance through programming MT4 101!

In terms of your chart, I've been able to replicate it. I've not been able to create boxes yet.
The settings are 10, so 5 either side. Below are just some thoughts and ramblings as I've tried to piece the equations together.

The challenges we have are going to be with timeframes. We want to be able to make consistent choices from consistent signals.
The difficulty is that a signal on a lower timeframe will come more frequently because t is the x-axis, thus being the number of bars.

1.3384 on the 5M was a transient price at 2:15pm... 10 bars later another transient price was registered... At this point, we are in
unknown territory as we have a zone that is forming between 3384 and 3371. Now how do we naturally know that it's not possible
for price to stay between these two prices? Higher timeframes.

We know that highs had been recorded in the afternoons of London, or New York Sessions.
Below, we can see that the 15M and higher don't have any Fractal Indicators (ie to mark the Transient Price zones) based on 5 either side.
So essentially, in the 5M timeframe it's not a pure enough definition of Transient and Recurring. The setting of 5 may be too low.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: EURUSD-5M.png Size: 77 KB
Click to Enlarge Name: EURUSD-15M.png Size: 78 KB
Click to Enlarge Name: EURUSD-1H.png Size: 68 KB
A pip is only worth it if you know how much you risked to earn it
  • #5,830
  • Aug 16, 2014 5:24pm Aug 16, 2014 5:24pm
Some of you guys are really clever - fractal divergence is all I can come up with at the moment.
  • #5,831
  • Aug 16, 2014 5:44pm Aug 16, 2014 5:44pm
Just to compare Eurusdd's original example on USDCHF with the indie from Hepsibah (which is a configurable Fractal Indicator to simulate +/- bars).
Note how the 5 blue arrows are only similar with 2 fractal signals. I suspect that on Eurusdd's chart, those zones within the bar are actually intraday zones but are visible on the Daily chart.

Edit:
Just realised I missed an extra blue arrow zone from the original, just after the first zone from the bottom left.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: USDCHF-1D.png Size: 53 KB
Click to Enlarge Name: USDCHF-1D_TRANSIENT.png Size: 27 KB
A pip is only worth it if you know how much you risked to earn it
  • #5,832
  • Aug 16, 2014 6:14pm Aug 16, 2014 6:14pm
Do you want a delicate secret ? ..
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot1.png Size: 213 KB
Neural Network Algorithm and Econophysics
  • #5,833
  • Edited Aug 17, 2014 7:05pm Aug 16, 2014 7:45pm | Edited Aug 17, 2014 7:05pm
Hi Eurusdd,

I am Really Really SORRY. I was too busy repairing my DS zone algorithm yesterday, and i was forget that yesterday was Saturday, the time you will give us good stuff !! I tried to Think and Think in the whole day, why I am so Fool , that i can not get good result .... I think i must learn Meditation, so it will calms my mind, and i can think clearly, for my better future.

I see your very nice posts this morning, it is not easy for me to understand it, but i will try my best. I know i need much time for this and for my DS zone ... nevertheless i will manage myself to be better and better ....

Thanks for you nice work
  • #5,834
  • Aug 16, 2014 7:51pm Aug 16, 2014 7:51pm
Doing this manually since I can't programme this yet into MT4. LOL

Based on what I see, I can't help but draw parallels with the ZZ Bollinger strategy.
Using the Fractal Indie (from Hepsibah) this shows the basic Transient Zones. I then delved into lower timeframes but I only went down to 1H and searched for the transition where price was not touched again within that single hour bar. This revealed the 2 green transient prices.

So, my interpretation is that the transient prices seem to be indicating a further move south (provided my assumption about the h value remains).
What's not on the chart are the previous transient prices:
1.3295, 1.3104 (Fractal Indie)
1.3285, 1.2952 (Manual)
These are based on 60 day bars on the screen.
Attached Image (click to enlarge)
Click to Enlarge Name: EURUSD-1D.png Size: 69 KB
A pip is only worth it if you know how much you risked to earn it
  • #5,835
  • Aug 16, 2014 7:54pm Aug 16, 2014 7:54pm
Ok! Last one for me for a little bit, I think I need to start looking at some of the other things eurusdd has posted about while I was sleeping.
If my calculations are correct (and very often they are not unfortunately) I think I can verify the 97%/3%, although not the 0.00005463% figure he listed. In any case the number is still quite small.
Attached Image
"Mrrraggglhlhghghlgh"
  • #5,836
  • Edited 8:36pm Aug 16, 2014 7:56pm | Edited 8:36pm
Quoting LiquidGenius
I spoke (or thought?) slightly too early yesterday. Oops. I guess that's what happens when you're really eager hah. I'm still working on the concepts but if anyone is looking for a hint or a tip, I'll give you the obvious one that eurusdd will likely back me on. Do your research! I've always been a visual and hands-on learner. The indi posted is a really great and simple tool to point out the transient bars (which I call box bars because I'm not very fancy. Perhaps when I make it, my vocabulary will increase as well heh). I do like to put in the...
Hi LiquidGenius, i am sure you can help all of us here .... i will do my research, and will come here for asking you if i get problem. Thank you in advance ..
  • #5,837
  • Aug 16, 2014 8:04pm Aug 16, 2014 8:04pm
Quoting LiquidGenius
{quote} I'm using 5 because that's the example that eurusdd provided. The yellow box, which I suppose you could say is a half box, is not valid. There is, however, something to learn from it. It verifies something. SHHHHHH.
Quoting LiquidGenius
...... I do like to put in the zones myself, and then make observations. Observe, hypothesize, then take the numbers elsewhere to verify what you thought you saw (excel for me). Excel, like most programming, is just a' function' when you use it properly. Ask it a question, and it gives you an answer. But watching the transient bars and what occurs in those areas in a chart is really where the questions come from. So go play! The below is output for the probability that a transient bar is followed by another transient bar within Delta bars. Not quite...
Thanks for you Clues, LiquidGenius .... Great stuff, this can be my starting point.
  • #5,838
  • Edited 8:40pm Aug 16, 2014 8:19pm | Edited 8:40pm
Quoting kprsa
{quote} From the looks of it, the proposition 1 appears to be correct. The problem is just that the involved positive integers could be quite large in case of a trending market... See below a possible "black swan event" for EURUSD on H1 chart. {image}
look at your chart again and you will see there is something wrong. This is the problem and reason i try to be careful sharing some things. Please get the concept right before you start making such errors. Thank you.

Pay attention to the words(phrases) almost surely and there exists. in the proposition.
Attached Image

Attached Image (click to enlarge)
Click to Enlarge Name: a1.PNG Size: 11 KB


So, the existence of h and k is an almost sure event meaning apart from some exceptional cases, you should be able to calculate optimal values for h and k.
  • #5,839
  • Aug 16, 2014 8:22pm Aug 16, 2014 8:22pm
Quoting LiquidGenius
Ok! Last one for me for a little bit, I think I need to start looking at some of the other things eurusdd has posted about while I was sleeping. If my calculations are correct (and very often they are not unfortunately) I think I can verify the 97%/3%, although not the 0.00005463% figure he listed. In any case the number is still quite small. {image}

sure the 0.00005463% is an error.intended 5.463% or 0.05463. my typing sometimes ooh. sorry
  • #5,840
  • Aug 16, 2014 8:50pm Aug 16, 2014 8:50pm
Quoting vlady1974
{quote} Firstly thanks so much for putting up the file. It's been quite helpful in helping me advance through programming MT4 101! In terms of your chart, I've been able to replicate it. I've not been able to create boxes yet. The settings are 10, so 5 either side. ....
Hi Vlady,
I will try it. The default value is "5,2" so i though it was "11,5" ... but may be i am wrong.
5 traders viewing now