Similarity in my opinion is one component in the queen system. Any forex system that does not apply similarity in a way is not the TRUE queen. Similarity, when applied correctly, should work on every pair and on every time-frame. It all depends on how you apply it.
The way most people apply it her is not the ultimate form of application. That is they look for dis-similarity and then trade back towards its correction. I am sure that cannot be applicable to everyone because not everyone has the right type of indicator/tool.
There is another way which is the smart way in my opinion.
1: Create a setup, where even if the indicator repaints, it does not do so once a bar closes. For example, if you are using an arrow indicator and an arrow appears on the current bar, it does not repaint once the bar closes, even if it can repaint when the bar is still active.
2: create a system where when comparing two different charts, your arrows should agree about 99% of the time and most important one time-frame calls an arrow a little earlier than the other.
In that way you will get some serious pips!!!
For example, consider the chart below. The arrow indicators are different. completely different set of indicators based on different principles but they agree more that 99% of the time. The arrow on the right normally leads the one on the left and these arrows do not repaint once the bar they are focused on closes or satisfies a certain condition.
Now, on the right there is an arrow pointing downward but there is no corresponding arrow on the left. That means down is still valid because the probability that the arrow on the right will repaint is 0% currently and the probability there will be similarity is 99.5432%
Furthermore, for the arrow on the left to appear, price must go down further.
This is a smarter way to trade similarity.
the BUY in the photo has nothing to do with this setup. it was there to hedge a position.
The nice thing about the setup above is this: arrows meet a bars 80%+ of the time. Therefore, that arrow which has not touch a bar yet is expect to touch one and that can only happens if price falls down a lot!
The way most people apply it her is not the ultimate form of application. That is they look for dis-similarity and then trade back towards its correction. I am sure that cannot be applicable to everyone because not everyone has the right type of indicator/tool.
There is another way which is the smart way in my opinion.
1: Create a setup, where even if the indicator repaints, it does not do so once a bar closes. For example, if you are using an arrow indicator and an arrow appears on the current bar, it does not repaint once the bar closes, even if it can repaint when the bar is still active.
2: create a system where when comparing two different charts, your arrows should agree about 99% of the time and most important one time-frame calls an arrow a little earlier than the other.
In that way you will get some serious pips!!!
For example, consider the chart below. The arrow indicators are different. completely different set of indicators based on different principles but they agree more that 99% of the time. The arrow on the right normally leads the one on the left and these arrows do not repaint once the bar they are focused on closes or satisfies a certain condition.
Now, on the right there is an arrow pointing downward but there is no corresponding arrow on the left. That means down is still valid because the probability that the arrow on the right will repaint is 0% currently and the probability there will be similarity is 99.5432%
Furthermore, for the arrow on the left to appear, price must go down further.
This is a smarter way to trade similarity.
the BUY in the photo has nothing to do with this setup. it was there to hedge a position.
The nice thing about the setup above is this: arrows meet a bars 80%+ of the time. Therefore, that arrow which has not touch a bar yet is expect to touch one and that can only happens if price falls down a lot!
