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The similarity system

  • #8,221
  • Sep 16, 2014 5:14pm Sep 16, 2014 5:14pm
Quoting HeisenbergFx
{quote} {quote} are you guys still using the BB Stochs method? or the cycle indicator?
Yes, but I no longer have to use the BB Stochs to compare to BB Price to spot Dissimilarity - i'm comfortable that the "close outside of bollinger band" rule is enough to capture the short term dissimilarities. I've modified it so I use the BB concept with ZigZag indicator.
Attached Image (click to enlarge)
Click to Enlarge Name: EURUSD-15M.png Size: 50 KB


Edit: Forgot to put the comment in the image. The arrows show the Zig Zag swings that didn't close outside the Bollinger. One has been returned to (quite violently) and I project the others will as well.
A pip is only worth it if you know how much you risked to earn it
  • #8,222
  • Sep 16, 2014 5:19pm Sep 16, 2014 5:19pm
Quoting vlady1974
{quote} Yes, but I no longer have to use the BB Stochs to compare to BB Price to spot Dissimilarity - i'm comfortable that the "close outside of bollinger band" rule is enough to capture the short term dissimilarities. I've modified it so I use the BB concept with ZigZag indicator. {image}
ty for your response vlad, what are the settings on your BB and zig zag? is the BB still default 24?
I Am The Danger... I Am The One Who Knocks
  • #8,223
  • Sep 16, 2014 5:45pm Sep 16, 2014 5:45pm
Quoting HeisenbergFx
{quote} ty for your response vlad, what are the settings on your BB and zig zag? is the BB still default 24?
Yes, the BB is set to 24. It seems to be resilient on all timeframes, but then I tend to use 4H, 1H, 15M, 5M.... with 2M for absolute timing entry if work allows.
A pip is only worth it if you know how much you risked to earn it
  • #8,224
  • Sep 16, 2014 5:54pm Sep 16, 2014 5:54pm
Quoting vlady1974
{quote} Yes, but I no longer have to use the BB Stochs to compare to BB Price to spot Dissimilarity - i'm comfortable that the "close outside of bollinger band" rule is enough to capture the short term dissimilarities. I've modified it so I use the BB concept with ZigZag indicator. {image} Edit: Forgot to put the comment in the image. The arrows show the Zig Zag swings that didn't close outside the Bollinger. One has been returned to (quite violently) and I project the others will as well.
Just to explain this further, this is an old template where I still had the BB Stoch on the chart to compare to the Price Chart. It was quite troublesome getting the right setting for the BB to balance real-estate as well as a quick visual. Here, you can't even see the bottom swings, but you can see the top swings.

After many months of looking at it, once you realise that the main swings worth trading close outside of BB, then you don't need the BB Stock - you can just put the BB on Price and I rely on Ralome v1 or v2 to tell me when a Dissimilarity Period kicks in.... but even then, I don't use that too often these days as I don't have time to look at it at work. The ZZBB still has about 30% error... but then again, that's why SL and trade management are there to minimise the losses.
Attached Image (click to enlarge)
Click to Enlarge Name: EURUSD-4H.png Size: 162 KB
A pip is only worth it if you know how much you risked to earn it
  • #8,225
  • Sep 16, 2014 5:59pm Sep 16, 2014 5:59pm
Quoting vlady1974
{quote} Yes, the BB is set to 24. It seems to be resilient on all timeframes, but then I tend to use 4H, 1H, 15M, 5M.... with 2M for absolute timing entry if work allows.
sorry for so many questions. so if you see a ZZ paint outside the BB on the 4h do you enter the trade, or do you drill down to the 1 h or 15 m chart and enter when a ZZ paints outside the BB on smaller TF in same direction?
I Am The Danger... I Am The One Who Knocks
  • #8,226
  • Sep 16, 2014 6:16pm Sep 16, 2014 6:16pm
Quoting HeisenbergFx
{quote} sorry for so many questions. so if you see a ZZ paint outside the BB on the 4h do you enter the trade, or do you drill down to the 1 h or 15 m chart and enter when a ZZ paints outside the BB on smaller TF in same direction?
Always drill down. Signals are fractal in nature. It's when they are all in sync and not out-of-phase that you get the best signals.

4H down
1H down
15M down
5M down

is better than

4H up
1H down
15M down
5M up
.... how long would you hold the trade? 1H? What if it went underwater?

is better than

4H down
1H up
15M down
5M up
.... if you entered on the 4H... then it's possible to be underwater 2-3 hours before being in trend. Is that good for your trading style?
A pip is only worth it if you know how much you risked to earn it
  • #8,227
  • Sep 16, 2014 9:16pm Sep 16, 2014 9:16pm
Quoting vlady1974
{quote} Just to explain this further, this is an old template where I still had the BB Stoch on the chart to compare to the Price Chart. It was quite troublesome getting the right setting for the BB to balance real-estate as well as a quick visual. Here, you can't even see the bottom swings, but you can see the top swings. After many months of looking at it, once you realise that the main swings worth trading close outside of BB, then you don't need the BB Stock - you can just put the BB on Price and I rely on Ralome v1 or v2 to tell me when a Dissimilarity...
Thanks Vlady. About COBB, do we need to see the candle that exactly has ZZ end point in it ?
On image we can see that at ZZ end point, the candle is Not COBB (b). But it was COBB at 1 candle before (a).
In this case, we can say that we must see candle (b), that is Not COBB ?

Thanks in advance.
Attached Image (click to enlarge)
Click to Enlarge Name: EU-M15-cobb.jpg Size: 55 KB
  • #8,228
  • Sep 16, 2014 9:54pm Sep 16, 2014 9:54pm
Quoting vlady1974
{quote} Just to explain this further, this is an old template where I still had the BB Stoch on the chart to compare to the Price Chart. It was quite troublesome getting the right setting for the BB to balance real-estate as well as a quick visual. Here, you can't even see the bottom swings, but you can see the top swings. After many months of looking at it, once you realise that the main swings worth trading close outside of BB, then you don't need the BB Stock - you can just put the BB on Price and I rely on Ralome v1 or v2 to tell me when a Dissimilarity...
supply and demand are good, but it might be drag you way from main ideas of similarly and dissimilar which constantly happening many times on 1-5-15 (tf) - supply and demand is stand alone strategy.
by using RSI Stochastic or CCI we can find similarly and dissimilar which is might be good and keep you away from HH, LL area but if you use supply and demand zones and zig zag its almost HH, LL area which are not easily hit. this system is against supply and demand zones, means opposite.
anyhow its good idea i am test it too.
i personal think oscillator are better than choosing HH and LL for this kind of strategy, beacuse we only have to see similar and disimilar signal and entry point.
-my knowledge is limited, if i wrote something wrong please correct it-
  • #8,229
  • Sep 17, 2014 12:10am Sep 17, 2014 12:10am
Quoting vlady1974
{quote} If I wasn't at work this would be so much easier.... but suffice to say, don't forget the 4H! The respect that price has paid to the Bollinger Mid means that this is probably the surest point in intraday price action that you can get for determining confirmed change of trend. I suspect now that price will have to stay above 2975 until 8pm and if it does it's a legit 4H close outside bollinger and I will be looking for moves lower. If it closes below 2975 before 8pm.... then I'm wrong and we'll see 1.3000 tomorrow. {image}
Always like to read your post.you are too good- LOL .I have questions that do you consider angle of the BB when you are choose your trade? Do you think this stcoch bb zz method work with all other major pairs? I think you are using stock 75 1 2. Is this is modified version of a stoch 75 1 1 could be used in 1h 4h? Thank you very much
unlearning is difficult than learning-that is the key!!
  • #8,230
  • Sep 17, 2014 12:34am Sep 17, 2014 12:34am
Quoting hukam
{quote} supply and demand are good, but it might be drag you way from main ideas of similarly and dissimilar which constantly happening many times on 1-5-15 (tf) - supply and demand is stand alone strategy. by using RSI Stochastic or CCI we can find similarly and dissimilar which is might be good and keep you away from HH, LL area but if you use supply and demand zones and zig zag its almost HH, LL area which are not easily hit. this system is against supply and demand zones, means opposite. anyhow its good idea i am test it too. i personal think...
ZZBB has nothing to do with Demand and Supply. I don't even mention it. I do have it as an indicator on one of charts which is a recent thing, but I don't talk about it.... It's merely coincidental that it ties up to TZ (another separate concept) which also ties up with Similarity...I think you're confused with the Techniques being used here.

Sim and Dissim are signals but I do not use it as Entry Exit Triggers.
what is Signal versus Trigger? That.... You must research. Not every Signal means you jump into a trade.
A pip is only worth it if you know how much you risked to earn it
  • #8,231
  • Sep 17, 2014 12:41am Sep 17, 2014 12:41am
Quoting sram
{quote} Always like to read your post.you are too good- LOL .I have questions that do you consider angle of the BB when you are choose your trade? Do you think this stcoch bb zz method work with all other major pairs? I think you are using stock 75 1 2. Is this is modified version of a stoch 75 1 1 could be used in 1h 4h? Thank you very much
Excellent question! Yes, the angle can allow you to project how price will form the next sequence of the swing.
It all depends on how the band expand and contract... When a High or Low has been printed, I sometimes think, How on earth is that going to print a Low for example when it's jus taken out this price level? But the the BB contracts as price action becomes less volatile.... Catches up to price and flattens out. Then it closes out and boom, satisfies the condition!

if it doesn't close outside, then it must try to solve the dissimilarity another way, by going towards the midpoint of Bollinger.. If it crosses, it's another signal. Trigger is when it aligns with other Timeframe directional bias for the same method.
A pip is only worth it if you know how much you risked to earn it
  • #8,232
  • Sep 17, 2014 12:50am Sep 17, 2014 12:50am
Quoting vlady1974
{quote} ZZBB has nothing to do with Demand and Supply. I don't even mention it. I do have it as an indicator on one of charts which is a recent thing, but I don't talk about it.... It's merely coincidental that it ties up to TZ (another separate concept) which also ties up with Similarity...I think you're confused with the Techniques being used here. Sim and Dissim are signals but I do not use it as Entry Exit Triggers. what is Signal versus Trigger? That.... You must research. Not every Signal means you jump into a trade.
thanks vlady1974 for clearly explanation...
thanks & regards,
hukam
  • #8,233
  • Sep 17, 2014 12:53am Sep 17, 2014 12:53am
Quoting elen21168
{quote} Thanks Vlady. About COBB, do we need to see the candle that exactly has ZZ end point in it ? On image we can see that at ZZ end point, the candle is Not COBB (b). But it was COBB at 1 candle before (a). In this case, we can say that we must see candle (b), that is Not COBB ? Thanks in advance. {image}
I saved this question last as I think this is the reason why price should go lower on EU. The endpoint of a ZZ swing doesn't have to COBB as long as any of the adjacent bars do so. It's obviously better if it does because I can use that as a n entry trigger on a higher timeframe, eg 1H, if for example it closes on its low, then next minute of new hour, if other signals are in line , I go long.

if it's not COBB but it's previous candles are, then to me it's a sign of weakness but you have to look for signs of strengthening too....perhaps the swing isn't over and it has just retraced and will then push further and repaints the ZZ. This happens a lot on lower timeframes, which is why I check 1D, 4H, 1H for directional synchronicity. Then I can make a call on the 15M, 5M and 2M. I try and use the quarter of each timeframe. The 4 to 1, 60 min to 15 min, 5 min to 2 min.... There's no 6 min chart!
A pip is only worth it if you know how much you risked to earn it
  • #8,234
  • Sep 17, 2014 1:07am Sep 17, 2014 1:07am
Quoting vlady1974
{quote} Excellent question! Yes, the angle can allow you to project how price will form the next sequence of the swing. It all depends on how the band expand and contract... When a High or Low has been printed, I sometimes think, How on earth is that going to print a Low for example when it's jus taken out this price level? But the the BB contracts as price action becomes less volatile.... Catches up to price and flattens out. Then it closes out and boom, satisfies the condition! if it doesn't close outside, then it must try to solve the dissimilarity...
Thank you vlady i got it. Do yo think method works on all other major pairs too?

regards
sram
unlearning is difficult than learning-that is the key!!
  • #8,235
  • Sep 17, 2014 1:24am Sep 17, 2014 1:24am
Quoting sram
{quote} Thank you vlady i got it. Do yo think method works on all other major pairs too? regards sram
Yes, I use it on other pairs. Concept is the same. But try to look out for specific behaviours... Each FX Pair has it's own specific personality. Eurjpy behaves differently to EURUSD to Usdjpy to Audusd etc etc.
A pip is only worth it if you know how much you risked to earn it
  • #8,236
  • Sep 17, 2014 1:45am Sep 17, 2014 1:45am
Quoting junior.eso
FX-Jay, Could you talk more aboult your system?

Will sure do once I have a little bit of time on hand to finish all the testing needed.
I'll keep you guys updated on this thread
  • #8,237
  • Sep 17, 2014 1:50am Sep 17, 2014 1:50am
Franky breaking from lower could set us up for higher pushes today in a very tight range. Gonna be eying 70-80 for any weakness. May not even trade it today....possibly scalping, but it all means nothing until news time tonight.
A pip is only worth it if you know how much you risked to earn it
  • #8,238
  • Sep 17, 2014 1:53am Sep 17, 2014 1:53am
Quoting vlady1974
{quote} Brilliant and impressive results FX-Jay! It's great to see your success!
Quoting wireash
{quote} NICE JOB A+
Thanks for the support guys
  • #8,239
  • Sep 17, 2014 1:59am Sep 17, 2014 1:59am
Quoting HeisenbergFx
{quote} {quote} are you guys still using the BB Stochs method? or the cycle indicator?
The strategy I'm using is based mainly on the probabilistic theories presented in this thread which mainly includes transient/recurrent areas.
My trading style is completely different from what I'm experimenting with at the moment, but since I've never seen such accuracy/returns in such a short period of time on so many different pairs in my last 5 years of trading, then I'm definitely going to adapt to this style little by little
  • #8,240
  • Sep 17, 2014 2:06am Sep 17, 2014 2:06am
Hmmm. 42 might be good for a Long scalp

edit: 35 is better
A pip is only worth it if you know how much you risked to earn it
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