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The similarity system

  • #9,701
  • Oct 1, 2014 6:22am Oct 1, 2014 6:22am
Quoting josh11
{quote} I am still long from 12588 with SL at BE so no risk, I think we should see some more up Best of luck
I am out at BE, will wait for another chance for long! I calculated a bottom for today could be set soon!

Lets see
  • #9,702
  • Oct 1, 2014 6:29am Oct 1, 2014 6:29am
Quoting LITEchild
{quote} My open trades are not from scalp setups. I'm swing trading. I do notice the attractive scalp opportunities for those so inclined. The scalp is just setting up now. Candle just closed. {image}
scalpers delight... +20pips since trade call.
  • #9,703
  • Oct 1, 2014 6:30am Oct 1, 2014 6:30am
This is for the questions I'm getting asked via PM regarding Uneven Transient Zones (UTZ)

The chart is 5M.
My platform is IGIndex so there are no MT4 indicators, just visual.

The anchoring bar that produces the HIGH or LOW is the central bar. Take the HI and LO of this bar
H is any number of bars before and after this central bar. For this example, I'll use 8 (no reason, random number)
Take the lowest LO of any bar within H range of the central bar. Draw a mental red line.
The highlighted section is the difference between the Red Line and the Low of the Central Line.
The highlighted section represents the range of prices THAT WILL NOT BE RETURNED TO WITHIN H BARS.


The turns seem to happen when there's more space on side of the full anchor bar than the other.
If you practice enough times, you'll find that you can make a reasonable call even before H completes on the right side.
Attached Image (click to enlarge)
Click to Enlarge Name: EURUSD-5M.JPG Size: 63 KB
A pip is only worth it if you know how much you risked to earn it
  • #9,704
  • Oct 1, 2014 6:41am Oct 1, 2014 6:41am
Quoting LITEchild
{quote} scalpers delight... +20pips since trade call.
Great call mate
  • #9,705
  • Oct 1, 2014 6:46am Oct 1, 2014 6:46am
Fall lines and TZ. Honk if you get it
I want more brain power!
  • #9,706
  • Oct 1, 2014 6:51am Oct 1, 2014 6:51am
Quoting cfdtaleong
Fall lines and TZ. Honk if you get it
I understand
  • #9,707
  • Edited 7:16am Oct 1, 2014 6:56am | Edited 7:16am
Edit : From V's post 9706

The highlighted section is the difference between the Red Line and the Low of the Central Line.
The highlighted section represents the range of prices THAT WILL NOT BE RETURNED TO WITHIN H BARS.

I figure some may get confused by this so here is my take. What I've highlighted in green is referring to the RIGHT side

Hope it helps
I want more brain power!
  • #9,708
  • Oct 1, 2014 6:57am Oct 1, 2014 6:57am
Quoting josh11
{quote} I understand
you guys are simply awesome
I want more brain power!
  • #9,709
  • Oct 1, 2014 7:11am Oct 1, 2014 7:11am
Quoting Robertk
{quote} What the hell Ephisi,how did you got into my ignore box. Just for the record! think something went wrong because i did not had the intention to do so.
i really wondered what i did wrong. lol. i have gotten used to being ignored.lol
  • #9,710
  • Oct 1, 2014 7:11am Oct 1, 2014 7:11am
Quoting cfdtaleong
{quote} Thanks V! Do correct me if I'm wrong again...., I figure some may get confused by this so here is my take. What I've highlighted in green is referring to the RIGHT side Hope it helps
Hey CFD! No, it wasn't for you mate... you're all good! BTW... did you forget to attach a graphic to the last post? Couldn't see your green highlight!
A pip is only worth it if you know how much you risked to earn it
  • #9,711
  • Oct 1, 2014 7:12am Oct 1, 2014 7:12am
Quoting josh11
{quote} Great call mate
  • #9,712
  • Oct 1, 2014 7:17am Oct 1, 2014 7:17am
Quoting vlady1974
{quote} Hey CFD! No, it wasn't for you mate... you're all good! BTW... did you forget to attach a graphic to the last post? Couldn't see your green highlight!
Hmm not sure why. Edited my post
I want more brain power!
  • #9,713
  • Oct 1, 2014 7:22am Oct 1, 2014 7:22am
feels like USDX is planning new high... incredible... no clue what will happen soon. just waiting...
As Above, So Below
  • #9,714
  • Oct 1, 2014 7:23am Oct 1, 2014 7:23am
Quoting cfdtaleong
{quote} Hmm not sure why. Edited my post
Aah... yep, that makes sense. Right Hand Side TZ... yes.
A pip is only worth it if you know how much you risked to earn it
  • #9,715
  • Oct 1, 2014 7:23am Oct 1, 2014 7:23am
Quoting josh11
{quote} I am out at BE, will wait for another chance for long! I calculated a bottom for today could be set soon! Lets see
  • #9,716
  • Oct 1, 2014 7:41am Oct 1, 2014 7:41am
Here's nice clean example of how to scalp these quite safely.

H=30 in this example (randomly chosen) and the diamonds show LL for 30 bars. Instead of trying to best guess bottom and catch falling knives, wait for potential bottom TZ to start forming and for price to pass back up through a LL. This should be confirmation that the rhs is forming and SL will be below bottom of the TZ.

There are a further two opportunities to the right as well.
Attached Image (click to enlarge)
Click to Enlarge Name: EURUSDM15oct1.png Size: 28 KB
  • #9,717
  • Oct 1, 2014 7:52am Oct 1, 2014 7:52am
i see more and more people are integrating open/close of bars into their TZ system. i think this is more logical way of trading rather than just quoting a number and trading it spontaneously when price reaches it. open and close bars have to confirm the direction first the way we intend to trade. the important thing is observing how price behaves at your pivot point.
As Above, So Below
  • #9,718
  • Oct 1, 2014 7:58am Oct 1, 2014 7:58am
Quoting hepsibah
Here's another little brain teaser.
Hi hepsibah,

Just to say, I have seen this post. The evaluation of probabilities is difficult for this case since it is difficult to specify the conditions exactly - my (quite crude) tools do not match your pattern recognition capabilities.

I would say that in most cases intuition has the advantage over pure calculation, we've evolved in this way. Having a good hunch is the start, then one can go on to verify it statistically. It is tricky to do it the other way around, there are simply too many dials to adjust.

Cheers and thanks for sharing,
k
  • #9,719
  • Oct 1, 2014 8:03am Oct 1, 2014 8:03am
Quoting kprsa
{quote} Hi hepsibah, Just to say, I have seen this post. The evaluation of probabilities is difficult for this case since it is difficult to specify the conditions exactly - my (quite crude) tools do not match your pattern recognition capabilities. I would say that in most cases intuition has the advantage over pure calculation, we've evolved in this way. Having a good hunch is the start, then one can go on to verify it statistically. It is tricky to do it the other way around, there are simply too many dials to adjust. Cheers and thanks for sharing,...
Thanks for looking kprsa, I suspected it would be a tricky one to evaluate. It is something that works very well when the market is quite choppy but needs very disciplined SL's when it goes on a streak.
  • #9,720
  • Oct 1, 2014 8:15am Oct 1, 2014 8:15am
Quoting hepsibah
Here's nice clean example of how to scalp these quite safely. H=30 in this example (randomly chosen) and the diamonds show LL for 30 bars. Instead of trying to best guess bottom and catch falling knives, wait for potential bottom TZ to start forming and for price to pass back up through a LL. This should be confirmation that the rhs is forming and SL will be below bottom of the TZ. There are a further two opportunities to the right as well. {image}
Thanks for sharing this, hepsibah, but this system seems a bit too much open to interpretation. For instance, why wouldn't you take the longs at the points I circled on your chart? Both seem to fit the rules you specified, yet both would have incurred drawdowns and possible stop losses. Why wait until the crosses you marked? Thanks!
Attached Image (click to enlarge)
Click to Enlarge Name: EURUSDM15oct1_mod.png Size: 36 KB
You reap what you sow.
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