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The similarity system

  • #9,181
  • Edited Sep 24, 2014 3:21am Sep 23, 2014 7:44pm | Edited Sep 24, 2014 3:21am
Quoting vlady1974
Just looking at the charts for tomorrow, attached is the 15M view. Interesting recent price action.... based on observing the uneven transient zones, should go up. {image}
Thank you very much mate. Now the risk becomes smaller .....
About the h, is there a rule that for smaller TF, h must be bigger ?
Edit:
I mean @smaller TF, h must be bigger, so for bigger TF h is smaller.
  • #9,182
  • Sep 23, 2014 7:50pm Sep 23, 2014 7:50pm
Quoting vlady1974
Just looking at the charts for tomorrow, attached is the 15M view. Interesting recent price action.... based on observing the uneven transient zones, should go up. {image}
Vlady1974 by definition of transient zones, the one in-between ... will always be even! So you will only have uneven at the extremes
  • #9,183
  • Sep 23, 2014 8:17pm Sep 23, 2014 8:17pm
Quoting Eurusdd
{quote}The ALIEN! He is not even trying to fool his broker with ONE intentional loss!
i thought so too. we are supposed to intentionally loose a few trades to show we are still human
  • #9,184
  • Sep 23, 2014 10:25pm Sep 23, 2014 10:25pm
Quoting Eurusdd
{quote}Vlady1974 by definition of transient zones, the one in-between ... will always be even! So you will only have uneven at the extremes
Thanks Eurusdd, good posts. will try it.
  • #9,185
  • Sep 23, 2014 11:04pm Sep 23, 2014 11:04pm
Quoting Eurusdd
The guy working on my indicator project just sent me the picture supporting the 1.2857 number!!! As you can see, he is perfecting the art of identifying recurrent prices/zones!!! Once the arrow color went red, he said, that price level will attract and it did!!! The 14 conditions i gave him seem to model the market VERY WELL!!!{image} He will be done with final product in 2 months!!!
May we know the 14 conditions, what are they ? If and only if it is no problem for public consume ...
Thanks

Edit:
Just read some last pages, and found this : http://www.forexfactory.com/showthread.php?p=7757364#post7757364
Hm... i can understand it, i think it is not for public.
  • #9,186
  • Sep 23, 2014 11:42pm Sep 23, 2014 11:42pm
I feel like I'm in the wrong timezone. And I'm certainly in the wrong job. Wish I could spend as much time as you guys on this stuff.
You reap what you sow.
  • #9,187
  • Sep 23, 2014 11:43pm Sep 23, 2014 11:43pm
magic happening here thanks to all you clever people we will overtake Eurusd very soon at this rate lol. (never happen )
its great that people are sharing all this
Many thanks to you all.
love that PDF . Vlady
Regards Orid peter
  • #9,188
  • Edited Sep 24, 2014 12:05am Sep 23, 2014 11:54pm | Edited Sep 24, 2014 12:05am
Quoting NorthTrader
I feel like I'm in the wrong timezone. And I'm certainly in the wrong job. Wish I could spend as much time as you guys on this stuff.
+1 . i hope can be a full trader some day

Quoting orid
magic happening here thanks to all you clever people we will overtake Eurusd very soon at this rate lol. (never happen ) its great that people are sharing all this Many thanks to you all. love that PDF . Vlady Regards Orid peter
Yes, i love this thread. There are so many good traders here, and they have good heart. I learned much from this thread.
Thanks a lot Eurusdd and all of members here for your contributions

---
I am looking for a short to touch my zone @2828 - 2833.
Edit:
2844 will be hit almost surely. Then i will look for next lower target around 2832.
Good friends are more valuable than gold ...
  • #9,189
  • Sep 24, 2014 12:07am Sep 24, 2014 12:07am
  •  Neio
  • Joined Oct 2012 | Status: Can't think outside?Enlarge the box | 688 Posts
Quoting Neio
{quote} My current thinking is that one of the conditions may be tied to the 50 level on the stoch. Reason for my thinking this is that as you showed stoch can be configured to mirror price for a high percentage of the time. With the right setting I noticed that Stoch likes to return to 50. So this could be a good attraction point. Obviously this level reflects different prices if the market is trending past previous swing points. Just an observation I have made and continuing to look into to see if it has some merit.

Here is a picture of a chart to show the observation...

...look how with the right stoch setting you can match the 50 levels to the key prices where the market will not tend to close more than 40 pips away before returning....

Attached Image (click to enlarge)
Click to Enlarge Name: EURUSDiH4-20170924-01.png Size: 23 KB
An expert is a man who has made all the mistakes which can be made
  • #9,190
  • Sep 24, 2014 12:08am Sep 24, 2014 12:08am
Hi to all most valued members of this thread. And a heartfelt thank you to EURUSDD for his generosity in sharing the wealth of priceless information all over the thread.

I have been a mute spectator till now, trying to grasp the ideas and adapt them in my trading. I have read this thread from the beginning and from what I understand the TZ concept is very important concept but the main idea is still to use the principles of similarity. The fundamental idea still remains the same that is the price will flow in such a direction so that it can restore similarity(at points of dissimilarity).

One thing that I would like to draw everybody's attention is towards using TZ concept in MTF. As their has not been much discussion on this topic and I feel this can help us a lot.

So here is a draft of what I think can be of value - EURUSDD always gives the analogy of price flowing like water with a determined path in its mind. Consider this:
- put a Transient indi with your optimal h value on 1m tf
- put another Transient indi with 5h value on 1m tf. This time h value is the optimal h value from 5m tf
- put another Transient indi with 15h value on 1m tf. This time h value is the optimal h value from 15m tf
- put another Transient indi with 60h value on 1m tf. This time h value is the optimal h value from 60m tf
- put another Transient indi with 240h value on 1m tf. This time h value is the optimal h value from 240m tf

Now when all these indi show a potential TZ then the probability of that TZ being a true TZ is the highest. Treat that potential TZ as a true TZ.
I have not done much analysis but I think price should move between these TZs(where all TZs coincide).
This concept also relate to EURUSDD's analogy of price following a determined path and flowing like water. Price wants to achieve similarity between all TFs. If it is not in harmony with all TFs then it will move in such a direction so that this can be achieved. And it will take the easiest route with least friction(you can also think of potential TZs as magnets that attract price)

I have not tested this but I think this is an important concept. Please share your views on this and if it seems to be completely off-topic and irrelevant just ignore it.

Regards,
Rav
  • #9,191
  • Sep 24, 2014 12:25am Sep 24, 2014 12:25am
  •  Neio
  • Joined Oct 2012 | Status: Can't think outside?Enlarge the box | 688 Posts
Quoting Neio
{quote} Here is a picture of a chart to show the observation... ...look how with the right stoch setting you can match the 50 levels to the key prices where the market will not tend to close more than 40 pips away before returning.... {image}

My theory is this....


Eurusdd showed us that STOCH can be configured to mirror price for a high percentage of the time. So if we say STOCH = Price, then what level on a STOCH would be a logical place where it always has to pass through or has a high chance or returning too?
An expert is a man who has made all the mistakes which can be made
  • #9,192
  • Sep 24, 2014 1:56am Sep 24, 2014 1:56am
  •  Neio
  • Joined Oct 2012 | Status: Can't think outside?Enlarge the box | 688 Posts
Quoting ravs_avs
Hi to all most valued members of this thread. And a heartfelt thank you to EURUSDD for his generosity in sharing the wealth of priceless information all over the thread. I have been a mute spectator till now, trying to grasp the ideas and adapt them in my trading. I have read this thread from the beginning and from what I understand the TZ concept is very important concept but the main idea is still to use the principles of similarity. The fundamental idea still remains the same that is the price will flow in such a direction so that it can restore...

Hi Rav,

I don't want your contribution to go unnoticed or without comment as it takes a lot of effort to share ideas. So I appreciate your contribution. I think you make a good point....I think it is the complexity of considering all timeframes that can put people off and I am not sure that the indicators we currently have are geared to show this at the moment.

For me personally I can see enough opportunities by focusing on one timeframe....but I do switch between others to try and make a correlation.

Regards

Neio
An expert is a man who has made all the mistakes which can be made
  • #9,193
  • Sep 24, 2014 2:11am Sep 24, 2014 2:11am
Hey guys,

still a little confused. do we still look for a similarity after a DS and long/short towards the DS? what if the DS is a few hours away?
  • #9,194
  • Sep 24, 2014 2:34am Sep 24, 2014 2:34am
Quoting Neio
{quote} Hi Rav, I don't want your contribution to go unnoticed or without comment as it takes a lot of effort to share ideas. So I appreciate your contribution. I think you make a good point....I think it is the complexity of considering all timeframes that can put people off and I am not sure that the indicators we currently have are geared to show this at the moment. For me personally I can see enough opportunities by focusing on one timeframe....but I do switch between others to try and make a correlation. Regards Neio
Thanks for the comment Neio. Really appreciate it.
  • #9,195
  • Sep 24, 2014 2:46am Sep 24, 2014 2:46am
Subscribed to FX-Jay
I really like FX-Jay's trading results.
  • #9,196
  • Sep 24, 2014 3:06am Sep 24, 2014 3:06am
Quoting ravs_avs
One thing that I would like to draw everybody's attention is towards using TZ concept in MTF. As their has not been much discussion on this topic and I feel this can help us a lot. Rav
This is quite a good post and is an excellent reminder to always check or cross reference against all time frames.
Higher TFs beat smaller TFs.

Dissimilarity / Similarity is both a period of time and a set of Price Levels just like a TZ. It's created from a price bar HI/Lo.
it won't give you an exact "plan" of how to trade it. You could trade away from it or towards it depending on timeframe.

TZ is a little more refined because of its focus on price. Combining both is powerful.
Also, Sim/DS can be expressed on many indicators and styles. Eg. I use ZZBB Method. When it gives a signal and TZ gives a signal in same direction, I WILL make money.
A pip is only worth it if you know how much you risked to earn it
  • #9,197
  • Sep 24, 2014 3:35am Sep 24, 2014 3:35am
Wow I think my eye may have just been opened about this concept!!

Need to test but OMG!!!
  • #9,198
  • Sep 24, 2014 3:46am Sep 24, 2014 3:46am
Long @ 2850.1
5M, aggressive, with h=6. There is another h @ 12 which has a lower TZ at 2840.
A pip is only worth it if you know how much you risked to earn it
  • #9,199
  • Sep 24, 2014 3:51am Sep 24, 2014 3:51am
Quoting josh11
Wow I think my eye may have just been opened about this concept!! Need to test but OMG!!!
Hi josh11, good the hear it So you have an EUR/EKA moment would you mind to tell us which post opened your eyes? (at least one of the last posts )
probably I see something too

Thanks
  • #9,200
  • Sep 24, 2014 3:58am Sep 24, 2014 3:58am
Quoting vlady1974
Long @ 2850.1 5M, aggressive, with h=6. There is another h @ 12 which has a lower TZ at 2840.
I am long for testing at the moment.

Lets see
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