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The similarity system

  • #6,021
  • Aug 18, 2014 9:33am Aug 18, 2014 9:33am
BTW, thanks to kprsa, your indicator is simply superb. Combined with Vlady's summary I can see some faint light, not clear, but its a light alright.
  • #6,022
  • Aug 18, 2014 9:35am Aug 18, 2014 9:35am
Quoting vlady1974
{quote} Mario, Price: 1.3400 x x x x x P x x x x x Price: 1.3390 x x p x x P x x x x x Price: 1.3380 x x p x x P x x x p x Price: 1.3370 x p p x x P x x x p x Price: 1.3360 x p x p x P x x p p p Price: 1.3350 p p x p p P p p x x p P is current price bar being evaluated. h = 5 So 5 bars back and 5 bars front is evaluated. P at 1.3400 is transient because price didn't touch it +/-5 days That is the level you want to take note of. Once you go beyond the hth bar.... price can do anything now. Currently price p is between 1.3360 and 1.3350 If it shot...
Thanks Vlady.
Good friends are more valuable than gold ...
  • #6,023
  • Aug 18, 2014 9:35am Aug 18, 2014 9:35am
Quoting shiva
{quote} Yes, my kindness knows no limits But I warn you I am going to stop if for a few days beginning 31st Dec midnight NY time. I have my reasons.
  • #6,024
  • Edited 9:53am Aug 18, 2014 9:36am | Edited 9:53am
Quoting Neio
{quote} If you read Eurusdd's posts he said you adjust h for each time frame so that you only see a very low number of transient zones (around 3%) {quote}
This is important. For example, if your k is constant, i.e. k=5, and there is a pin-bar with tail = 10 pips, you are supposed to declare only 5 pips of whatever part is left as transient in your trading process. Don't extend the transient portion to the whole tail. so even though the light-blue part was not really recurrent, your sell still worked!!!
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  • #6,025
  • Aug 18, 2014 9:37am Aug 18, 2014 9:37am
Quoting Baillie
{quote} You can also put the indicator Recurrent statistics on a chart and adjust the input for the # of bars and check their probability, look for the lowest probability for the time frame of your choice. Keep in mind that this indicator only is capable of identifying proposition#1 NOT proposition#2. It would be fantastic if it could do both, hint hint
are you talking about the mid bar box?
follow the flow
  • #6,026
  • Aug 18, 2014 9:38am Aug 18, 2014 9:38am
Quoting Atihun
{quote} are you talking about the mid bar box?
Yes
  • #6,027
  • Aug 18, 2014 9:38am Aug 18, 2014 9:38am
Long = shooting 1.3390
  • #6,028
  • Aug 18, 2014 9:44am Aug 18, 2014 9:44am
Quoting Baillie
{quote} Yes
i have coded an indicator to identify these boxes but im not sure if i did it right..check post
http://www.forexfactory.com/showthread.php?p=7680694#post7680694
follow the flow
  • #6,029
  • Aug 18, 2014 9:45am Aug 18, 2014 9:45am
  •  Neio
  • Joined Oct 2012 | Status: Can't think outside?Enlarge the box | 688 Posts
Quoting hepsibah
So there is now a whopping mid bar T zone between 13369 and 13379 unless price fills it. So presumably that is why Eurusdd said to watch for a speedy bounce upwards?

Difficulty is knowing how far into that bar price will return as part of the recurrent area (as the bar might be transient) . I have a target at 1.3372 but not sure it will be reached.
An expert is a man who has made all the mistakes which can be made
  • #6,030
  • Aug 18, 2014 9:48am Aug 18, 2014 9:48am
Quoting Neio
{quote} Difficulty is knowing how far into that bar price will return as part of the recurrent area (as the bar might be transient) . I have a target at 1.3372 but not sure it will be reached.
remember the value of h. don't panic. There are h bars and your expectation is that if your h is cool, at least one of the bars should ..... trade like a PRO!
  • #6,031
  • Aug 18, 2014 9:48am Aug 18, 2014 9:48am
  •  Neio
  • Joined Oct 2012 | Status: Can't think outside?Enlarge the box | 688 Posts
Quoting Eurusdd
{quote} This is important. For example, if your h is constant, i.e. h=5, and there is a pin-bar with tail = 10 pips, you are supposed to declare only 5 pips of whatever part is left as transient in your trading process. Don't extend the transient portion to the whole tail. so even though the light-blue part was not really recurrent, your sell still worked!!! {image} .

hmmm....have I got something wrong. I though h was the width of the box not height?
An expert is a man who has made all the mistakes which can be made
  • #6,032
  • Aug 18, 2014 9:49am Aug 18, 2014 9:49am
This is the hottest thread now
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  • #6,033
  • Aug 18, 2014 9:58am Aug 18, 2014 9:58am
Quoting Neio
{quote} If you read Eurusdd's posts he said you adjust h for each time frame so that you only see a very low number of transient zones (around 3%) {quote}
Yes, but the question is: How to quantify the 3%?
1. sum up all the pips of the "confirmed transient zones", divide by sum of pips in "confirmed transient zones", and multiply by 100.
2. same as in 1, but instead of using pips, use a count of the bars in each category.
3. Use 1 or 2, but filter each category based upon...
  • #6,034
  • Aug 18, 2014 9:59am Aug 18, 2014 9:59am
This is the meeting ground for serious traders!!!
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  • #6,035
  • Aug 18, 2014 10:00am Aug 18, 2014 10:00am
Quoting Sciurus
{quote} Yes, but the question is: How to quantify the 3%? 1. sum up all the pips of the "confirmed transient zones", divide by sum of pips in "confirmed transient zones", and multiply by 100. 2. same as in 1, but instead of using pips, use a count of the bars in each category. 3. Use 1 or 2, but filter each category based upon...
I am preparing a full documentation for this setup and I will post it here. If you have problems, I am sure it will be answered! So be patient
  • #6,036
  • Aug 18, 2014 10:02am Aug 18, 2014 10:02am
  •  Neio
  • Joined Oct 2012 | Status: Can't think outside?Enlarge the box | 688 Posts
Quoting Sciurus
{quote} Yes, but the question is: How to quantify the 3%? 1. sum up all the pips of the "confirmed transient zones", divide by sum of pips in "confirmed transient zones", and multiply by 100. 2. same as in 1, but instead of using pips, use a count of the bars in each category. 3. Use 1 or 2, but filter each category based upon...

Well I started by trying various wide ranging settings for h each time and counting the number of transient areas across 1000 bars. I tweaked the settings until I got around 30 transient bars (3%). Not sure if it is 100% how Eurusdd would do it but....
An expert is a man who has made all the mistakes which can be made
  • #6,037
  • Aug 18, 2014 10:02am Aug 18, 2014 10:02am
I like this idea of recurrence, if only for the idea that it aligns with a lot of ideas from other threads, like in the James16 thread they talk about setups with a lot of "space" to the left. Remind you of something? Or how about in Market Profile, where they teach that you want to trade the extremes. Remind you of something? Or how about VSA where they teach you to trade wide range bar gaps. Remind you of something???
  • #6,038
  • Aug 18, 2014 10:03am Aug 18, 2014 10:03am
Quoting Eurusdd
{quote} I am preparing a full documentation for this setup and I will post it here. If you have problems, I am sure it will be answered! So be patient
I am sure your upcoming documents will help all of us ...
  • #6,039
  • Aug 18, 2014 10:04am Aug 18, 2014 10:04am
Quoting vlady1974
{quote} Mario, Price: 1.3400 x x x x x P x x x x x Price: 1.3390 x x p x x P x x x x x Price: 1.3380 x x p x x P x x x p x Price: 1.3370 x p p x x P x x x p x Price: 1.3360 x p x p x P x x p p p Price: 1.3350 p p x p p P p p x x p P is current price bar being evaluated. h = 5 So 5 bars back and 5 bars front is evaluated. P at 1.3400 is transient because price didn't touch it +/-5 days That is the level you want to take note of. Once you go beyond the hth bar.... price can do anything now. Currently price p is between 1.3360 and 1.3350 If it shot...
Hi Vlady, could you post your chart in order to understand how you mark the "P" on each time frame? Thanks to Eurusdd for your wonderful lesson. I'm trying to catch up everything you have taught in this forum as well. I respect you guys.
  • #6,040
  • Aug 18, 2014 10:06am Aug 18, 2014 10:06am
Quoting Eurusdd
{quote} I am preparing a full documentation for this setup and I will post it here. If you have problems, I am sure it will be answered! So be patient

Hey, no worries! I was just thinking out loud, as I prone to do in real life (just rarely on forums, ha ha!). I am enjoying thinking this through.
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