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The similarity system

  • #6,981
  • Aug 26, 2014 3:05am Aug 26, 2014 3:05am
Quoting samaralala
{quote} Shit happens :-)
Ou ok, got it. Thanks
  • #6,982
  • Aug 26, 2014 3:16am Aug 26, 2014 3:16am
Let's clear out this DS zone, long opened at 1.31920
Attached Image (click to enlarge)
Click to Enlarge Name: Skærmbillede 2014-08-26 kl. 10.11.45.png Size: 47 KB
Not about how much you win, but how much you loose
  • #6,983
  • Aug 26, 2014 3:17am Aug 26, 2014 3:17am
Quoting Christmas14
{quote} Hello summicron, I hope the two attached pictures make it clear: 1. The transient example is a fully developed transient price range that is not touched 72h before and after (happens 1.4% in my example) 2. The "possible transient" price range in the second picture was not touched for 72h but is currently developing. The right orange range will be covered completely (make the price range recurrent) within the next 66 hours (price range is already 6 hours old) with a probability of 89% and it will NOT be completely covered with a probability...
Nice picture Christmas, thanks. Simple but clear calculation, i like it ...

Quoting kprsa
{quote} Hi, i have done some simple analysis regarding the probability of clearing the zone as a function of time by slightly modifying the indicator. Some of the results are in my previous comments. I have not done much regarding the price difference probability... It is always good to try to program the indicator by yourself - that is why I made one in the first place... Gruss aus Freiburg, kprsa
That is a great code kprsa, i am playing with it at the moment. Trying to find best result on small time frames (testing it since Some Hours until now, will try until 1 Day, this whole day). I am sure will get good result today or tomorrow ...
  • #6,984
  • Aug 26, 2014 3:21am Aug 26, 2014 3:21am
Quoting Ullen
Let's clear out this DS zone, long opened at 1.3920 {image}
I have a long , my target is around 1.3245 - 1.3248. I will wait for US core durable goods news.
  • #6,985
  • Aug 26, 2014 3:25am Aug 26, 2014 3:25am
Quoting tbird2121
{quote} I have a long , my target is around 1.3245 - 1.3248. I will wait for US core durable goods news.
I was just waiting for the CI signal. I have target 1.3252, so almost the same
Not about how much you win, but how much you loose
  • #6,986
  • Aug 26, 2014 3:33am Aug 26, 2014 3:33am
Quoting Ullen
{quote} I was just waiting for the CI signal. I have target 1.3252, so almost the same
Great ... our target is near. I have put order some times ago, at the time the candle went below my indicator line, and retrace on H4. At that time, stoch was at 0, and going up at small time frame.
  • #6,987
  • Aug 26, 2014 3:52am Aug 26, 2014 3:52am
85-90 area has H1 H4 and D1 support - let's see what happens.
  • #6,988
  • Aug 26, 2014 3:56am Aug 26, 2014 3:56am
Quoting tbird2121
{quote} I have a long , my target is around 1.3245 - 1.3248. I will wait for US core durable goods news.
Core Durable Goods Orders should be flying with rainbow colors....
If you fall, I shall be there. - The floor
  • #6,989
  • Aug 26, 2014 4:06am Aug 26, 2014 4:06am
Quoting handy148
85-90 area has H1 H4 and D1 support - let's see what happens.
I am agree, it will goes up a little. But for long term, EU still has a big gravity force, it will fall down in the future ....
Good friends are more valuable than gold ...
  • #6,990
  • Aug 26, 2014 4:07am Aug 26, 2014 4:07am
Quoting Ullen
Let's clear out this DS zone, long opened at 1.31920 {image}
You need to validate that DS Zone by seeing if there are other zones in higher timeframes. 5M is always trumped by 1H or 4H.
And also, just because a DS Zone appears is no guarantee of it being hit "soon". Trending prices trump anything.... go with it.
A pip is only worth it if you know how much you risked to earn it
  • #6,991
  • Aug 26, 2014 4:16am Aug 26, 2014 4:16am
Quoting vlady1974
{quote} You need to validate that DS Zone by seeing if there are other zones in higher timeframes. 5M is always trumped by 1H or 4H. And also, just because a DS Zone appears is no guarantee of it being hit "soon". Trending prices trump anything.... go with it.
Wow, thanks for this information Vlady. Without probability calculation, I have thought the opposite before, because the distance at small TF is normally smaller to current price, so i though it will be reached first .....
  • #6,992
  • Aug 26, 2014 4:25am Aug 26, 2014 4:25am
Quoting tbird2121
{quote} Wow, thanks for this information Vlady. Without probability calculation, I have thought the opposite before, because the distance at small TF is normally smaller to current price, so i though it will be reached first .....
The danger with this stuff is that you all will pick the TFs that is appropriate for your trading style. You then grab an indicator and because it gives pretty pictures, you can sometimes lose the connection to the underlying principle governing the indicator.

DS requires that you constantly assess/reassess all timeframes so that you know where all the significant DS zones are. They can act like magnets or repellents.
These work differently to TZ but ultimately have the same principles of probability. There is a stronger chance of price returning to a DS Zone but you don't know when because we've not been given the tools.

So you must still rely on non-Eurusdd trading techniques to establish Timeframe Trend and stack what you know into your trading decision. If you're scalping, you MUST know the 1H or 4H barriers. Even if you're on 1M or 5M. If you're on 1H, you need to be aware of both 5M zones as well as Weekly/Monthly zones in order to both time your entry and pick direction.

Let me pass on some words of wisdom I encountered lately:

1. Price = Points of Data
2. All Data Flows
3. Law of Inertia governs Data Flows
4. If you understand the Data Structure of the Price you are looking at, you will understand the Next Move.
A pip is only worth it if you know how much you risked to earn it
  • #6,993
  • Aug 26, 2014 4:48am Aug 26, 2014 4:48am
Quoting vlady1974
{quote} The danger with this stuff is that you all will pick the TFs that is appropriate for your trading style. You then grab an indicator and because it gives pretty pictures, you can sometimes lose the connection to the underlying principle governing the indicator. DS requires that you constantly assess/reassess all timeframes so that you know where all the significant DS zones are. They can act like magnets or repellents. These work differently to TZ but ultimately have the same principles of probability. There is a stronger chance of price...
Thanks Vlady ... , will try to learn it ...
  • #6,994
  • Aug 26, 2014 4:58am Aug 26, 2014 4:58am
Quoting vlady1974
{quote} You need to validate that DS Zone by seeing if there are other zones in higher timeframes. 5M is always trumped by 1H or 4H. And also, just because a DS Zone appears is no guarantee of it being hit "soon". Trending prices trump anything.... go with it.
Thank you for the input. I based my decision on the CI signal and the Kroufr, i never base decisions from DS bars only.

In my opinion the CI indicator is way stronger in terms of predicting price movement, but the DS bars just helps us detecting where we are going.
Not about how much you win, but how much you loose
  • #6,995
  • Aug 26, 2014 5:00am Aug 26, 2014 5:00am
Quoting Ullen
{quote} Thank you for the input. I based my decision on the CI signal and the Kroufr, i never base decisions from DS bars only. In my opinion the CI indicator is way stronger in terms of predicting price movement, but the DS bars just helps us detecting where we are going.
Similar signal on GBP/JPY
Attached Image (click to enlarge)
Click to Enlarge Name: Skærmbillede 2014-08-26 kl. 11.59.57.png Size: 27 KB
Not about how much you win, but how much you loose
  • #6,996
  • Aug 26, 2014 5:04am Aug 26, 2014 5:04am
Attached Image (click to enlarge)
Click to Enlarge Name: EURUSDD.png Size: 18 KB
  • #6,997
  • Aug 26, 2014 5:12am Aug 26, 2014 5:12am
Hallo,
I saw this thread listed at "hottest" zone @FF almost everyday in the last 2 weeks. The big curiosity forces me to read this thread, and i found it is really interesting (although i still need time to read the whole posts). I saw the thread starter and you all still using CI indicator which is a repaint indicator, does it mean that i can choose any kind of indicator, although it is repaint badly ? I love an indicator which read the "future" candle ( i-1 , i-2, i-3 : i = current candle). Can i use this indicator for this concept, or it is a bad idea ?

Thank you in advance.
  • #6,998
  • Aug 26, 2014 5:15am Aug 26, 2014 5:15am
Quoting Ullen
{quote} Similar signal on GBP/JPY {image}
What settings for the two CI you are using?

Thanks
  • #6,999
  • Aug 26, 2014 5:16am Aug 26, 2014 5:16am
Quoting dragos_
{quote} What settings for the two CI you are using? Thanks
1 min: 1-10-4
5 min: 1-50-4
Not about how much you win, but how much you loose
  • #7,000
  • Aug 26, 2014 5:52am Aug 26, 2014 5:52am
Quoting Thienduong
Hallo, I saw this thread listed at "hottest" zone @FF almost everyday in the last 2 weeks. The big curiosity forces me to read this thread, and i found it is really interesting (although i still need time to read the whole posts). I saw the thread starter and you all still using CI indicator which is a repaint indicator, does it mean that i can choose any kind of indicator, although it is repaint badly ? I love an indicator which read the "future" candle ( i-1 , i-2, i-3 : i = current candle). Can i use this indicator for this concept, or it is...
The overall thread is principle-driven not indicator driven, although the discussions tend to branch into 3 main indicator type chats: CI, Bollinger, Stochastic.
The idea is blend the concepts into your trading style as ultimately, similarity is indicator agnostic.

CI and Zigzag are key indicators used in the indicator implementations of the concept. Both repaint.
That's the inherent flaw in all of this that all traders and viewers need to accept: no-one knows what the next outcome will be.

The recent discussion into probabilities should help towards creating a probability projection but there is no certainty, just probabilities.
Therefore, the idea of an indicator reading a future candle is erroneous at this level.... you can't really do it by indicator.... instead, you can do it by data. There are some threads dedicated to this kind of discussion but I warn you that it is highly mathematical and code-based, so if you are that way inclined then go for it.

I would suggest that you search and download from the thread's attachment page (paperclip icon). I recall someo people have actually developed a great scalping method on the CI based on the 5M and 1M timeframe and focusing on other currencies other than EURUSD. Caveat Emptor.



Newbie Disclaimer:
For any newbies who are fascinated by this thread and are new to trading will find it difficult. Don't ask for summaries, don't ask for help unless you have read all 350 pages at least once. If you don't match that effort, it's just not worth your while asking "lazy" questions. There have been many pioneers come and go on this thread and they have done some SERIOUS thinking and research and developed their own implementations of the concept. Sadly or unfortunately, this is not a classroom, just a discussion so no one is obliged to help you and no-one should start trading on someone else's price calls.
A pip is only worth it if you know how much you risked to earn it
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