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The similarity system

  • #10,681
  • Oct 21, 2014 12:42pm Oct 21, 2014 12:42pm
Quoting Eurusdd
{quote}nice read! Love this comment!
Indeed great info, thank you gents.
  • #10,682
  • Oct 21, 2014 1:28pm Oct 21, 2014 1:28pm
Quoting cfdtaleong
{quote} To answer your question properly..... 1)You have your targets correct. 2)What are you doing? You are trading a return to a level you identified. 3)When do you enter? In your picture, why buy now? What is your trigger? By indicator or price action? 4)Your templates only tell you where the targets are. They DO NOT tell you when to enter. 5)Just because you identify a target, it does not mean it will be returned to 100% or in the near future. The green area can be there for days or weeks. 6)You decide if your entry is good or bad. If you must...

Thanks friend, you have cleared the way for me. I make a mess with google translator!

1.-I understand that you say my chart is just to find the targets.

2. I lack a system for the trigger, which sure as many here use the "CI"?

3. I combine the "CI" with this template targets? it is a good decision?

4.-The "TZ" indicator can replace the indicator Ralome?

Thank you very much for your help!

Natalia.
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  • #10,683
  • Oct 21, 2014 1:53pm Oct 21, 2014 1:53pm
Quoting kprsa
{quote} Hi Porkpie, For the random data the transient zone (TZ) theory would in some cases even work better. Eurusdd introduced the TZ concept on the Markov process. That is the process with no memory, i.e. the subsequent candles are independent events (imagine flipping a coin every time unit to decide on the market behaviour). A simple strategy: The probability of the subsequent transient zones for a Markov process will be (given a judicious choice of h resulting in 97% recurrence) 3%*3%=0.09%, so, when one observes two TZs on subsequent candles,...
You guys are helping me understand financial markets in ways I had not previously thought about. Thank you so much!!
Open to new approaches.
  • #10,684
  • Edited 3:57pm Oct 21, 2014 2:25pm | Edited 3:57pm
Just finished reading ALL posts within the 535 pages. Took me about 1 week (almost full time).
And you know what? It was totally worth.

Thank you EURUSDD, you changed my view of the market. Your concepts blew my mind several times, and the biggest revelation was the TZ probability principle.
Why on earth couldn't I see it before? Trying all the time to trade the unexpected event (3%) while not seeing the other 97%.

I think I understand many of the key concepts revealed here but of course not everything 100%, maybe with time and your help I'll get there.

Thanks to the following contributors:
vlady,
kprsa,
josh,
baillie,
cfdtaleong,
adeforex,
ullen,
fx-jay,
hepsibah,
GU-Night,
LITEchild,
rav_avs,
SunSaltwater,
Neio,
and many others, too many to call them all by name...

I hope we continue to help each other while studying and researching as a community. We can achieve so much more together.
Time to play with those new toys, cya around
the 3rd wave is the crowd's wave
  • #10,685
  • Oct 21, 2014 2:46pm Oct 21, 2014 2:46pm
Quoting ninpojutsu
{quote} Thanks friend, you have cleared the way for me. I make a mess with google translator! 1.-I understand that you say my chart is just to find the targets. 2. I lack a system for the trigger, which sure as many here use the "CI"? 3. I combine the "CI" with this template targets? it is a good decision? 4.-The "TZ" indicator can replace the indicator Ralome? Thank you very much for your help! Natalia. {image}
Very good Natalia!

3) Yes idea is good but "CI" has weakness because of repainting. So you still must be careful and manage your trade. Remember just because a target is there it does not mean it will be hit 100%. Price may reach only half way for example so money and trade management must come in and you will get your pips. And "CI" is just one of the methods you can use.

4) You choose one or both. They both give you targets, they just do it differently
I want more brain power!
  • #10,686
  • Oct 21, 2014 4:36pm Oct 21, 2014 4:36pm
Quoting cfdtaleong
{quote} Very good Natalia! 3) Yes idea is good but "CI" has weakness because of repainting. So you still must be careful and manage your trade. Remember just because a target is there it does not mean it will be hit 100%. Price may reach only half way for example so money and trade management must come in and you will get your pips. And "CI" is just one of the methods you can use. 4) You choose one or both. They both give you targets, they just do it differently
What other methods are being used? or none are established and everyone who wants to use?
Here I see several users who have good results with CI. This thread is differentiated by the idea but it seems no one gets wet in saying that exact methods must be used.

What you recommend me?
  • #10,687
  • Oct 21, 2014 4:49pm Oct 21, 2014 4:49pm
Quoting ninpojutsu
{quote} What other methods are being used? or none are established and everyone who wants to use? Here I see several users who have good results with CI. This thread is differentiated by the idea but it seems no one gets wet in saying that exact methods must be used. What you recommend me?
ninpojutsu,
there are people who read the thread several times. I would recommend reading the thread will perform and you had your own conclusions. Each person has a different way of trading, thus, the instruments used by each are subjective. All is in the thread.
  • #10,688
  • Oct 21, 2014 4:54pm Oct 21, 2014 4:54pm
I've been devouring the thread within the constraints of time and how much it makes my head hurt (in a good way). One thing I don't see discussed much is the following:

  1. Transient zones can be large in terms of price ranges they encompass.
  2. Price points at which multi-timeframe stochastics disagree are very specific; my own monitoring shows they often occur for just one tick before the stochastics become identical again.

Do TZs and stochastic disagreements line up at all? In other words, is a TZ likely to contain stochastic disgreements? Seems to me the answer is probably "no, they are quite independent."

There are other questions I will ask but I'll put this one out there for now.

Thanks to all who are keeping this thread so compelling!

Open to new approaches.
  • #10,689
  • Oct 21, 2014 5:08pm Oct 21, 2014 5:08pm
According to the theory, the stochastic process can have a common point with other timeframes. Several common points form a node. What changes from one timeframe to another is the frequency (the amplitude is different), but at some point in time all timeframes must match a node.
This is the theory. Identify these nodes is difficult task, at least for me.
  • #10,690
  • Oct 21, 2014 5:18pm Oct 21, 2014 5:18pm
Quoting burnssss
{quote} ninpojutsu, there are people who read the thread several times. I would recommend reading the thread will perform and you had your own conclusions. Each person has a different way of trading, thus, the instruments used by each are subjective. All is in the thread.

I know because I've tried to read and read, but my language does not fully understand the details, understanding is very important.
Thank you.
  • #10,691
  • Oct 21, 2014 5:25pm Oct 21, 2014 5:25pm
Quoting juriFX
Just finished reading ALL posts within the 535 pages. Took me about 1 week (almost full time). And you know what? It was totally worth. Thank you EURUSDD, you changed my view of the market. Your concepts blew my mind several times, and the biggest revelation was the TZ probability principle. Why on earth couldn't I see it before? Trying all the time to trade the unexpected event (3%) while not seeing the other 97%. I think I understand many of the key concepts revealed here but of course not everything 100%, maybe with time and your help I'll...
Congratulations. Someday, you will help others too! All the best!
  • #10,692
  • Oct 21, 2014 5:25pm Oct 21, 2014 5:25pm
Quoting burnssss
According to the theory, the stochastic process can have a common point with other timeframes. Several common points form a node. What changes from one timeframe to another is the frequency (the amplitude is different), but at some point in time all timeframes must match a node. This is the theory. Identify these nodes is difficult task, at least for me.
I'd like to be prideful and say I understand, but I do not.

One thing I'm wondering is, do the stochastic mismatches reveal market distortions that must be corrected by the prices where the distortions occurred being revisited? Or is it not 100% necessary that those price levels need to be revisited to correct the distortions?
Open to new approaches.
  • #10,693
  • Oct 21, 2014 5:27pm Oct 21, 2014 5:27pm
Quoting ninpojutsu
{quote} I know because I've tried to read and read, but my language does not fully understand the details, understanding is very important. Thank you.
I understand, I only spoke Spanish, "little by little" and thanks to the translator'm learning English too. I advise you to read your mind slowly, translating every word you do not know. There are many interesting things out there.
Aim anything you do not understand. Once you've read most of the thread, then I think it's time to ask. It takes time, but if something is I am proud to have been with many people since the beginning of interesting threads.
Anything you need can count on me.
Thank you very much
  • #10,694
  • Oct 21, 2014 5:27pm Oct 21, 2014 5:27pm
Quoting ninpojutsu
{quote} I know because I've tried to read and read, but my language does not fully understand the details, understanding is very important. Thank you.
Unfortunately, there is hard truth you have to learn to accept.
This thread cannot teach you how to trade.
You must learn and get techniques of your own.

When you have mastered at least 2 then you will see the benefit of this thread.
The two strategies you need are:

1. Trend Following
2. Range Bound

You cannot use both at the same time.
Best of luck
A pip is only worth it if you know how much you risked to earn it
  • #10,695
  • Oct 21, 2014 5:32pm Oct 21, 2014 5:32pm
Quoting MetaCoder
{quote} I'd like to be prideful and say I understand, but I do not. One thing I'm wondering is, do the stochastic mismatches reveal market distortions that must be corrected by the prices where the distortions occurred being revisited? Or is it not 100% necessary that those price levels need to be revisited to correct the distortions?
I have no deep knowledge of these distortions, but there are cases in which I assume will not correct.
  • #10,696
  • Oct 21, 2014 5:37pm Oct 21, 2014 5:37pm
Quoting MetaCoder
{quote} I'd like to be prideful and say I understand, but I do not. One thing I'm wondering is, do the stochastic mismatches reveal market distortions that must be corrected by the prices where the distortions occurred being revisited? Or is it not 100% necessary that those price levels need to be revisited to correct the distortions?
I believe that is the premise of the Similarity Principle.

The trick is to be able to tell how soon.
Eurusdd had a way of telling that a level would be returned to within the confines of a chart, usually set to the 4H.
A pip is only worth it if you know how much you risked to earn it
  • #10,697
  • Edited Oct 22, 2014 2:02pm Oct 21, 2014 6:27pm | Edited Oct 22, 2014 2:02pm
I have an EA that detects the most recent stochastic mismatch between the 1-hour and the 30-minute timeframes for any symbol you attach it to. It draws a horizontal line on the chart at the price where the mismatch was detected. It should not matter what timeframe you pick to attach the EA to. There are some refinements I might want to make but here it is, such as it is. I wrote it as an EA, not an indicator, because it might become the framework for an EA that gives alerts and/or places trades in fully-automatic mode.

Attached File(s)
File Type: mq4 RevealWormhole_01.mq4   7 KB | 614 downloads
Open to new approaches.
  • #10,698
  • Oct 21, 2014 6:36pm Oct 21, 2014 6:36pm
Quoting MetaCoder
I have an EA that detects the most recent stochastic mismatch between the 1-hour and the 30-minute timeframes for any symbol you attach it to. It draws a horizontal line on the chart at the price where the mismatch was detected. It should not matter what timeframe you pick to attach the EA to. There are some refinements I might want to make but here it is, such as it is. I wrote it as an EA, not an indicator, because it might become the framework for an EA that gives alerts and/or places trades in fully-automatic mode. {file}
I did the same a few weeks back and didn't find any significance at the time - now I have my indicator similarity EA running, and what do you know... but the difficulty with just stoch mismatch is that it doesn't give direction or strength. I bet you can think of a few other stoch-based indicators you could run with it to triangulate...
  • #10,699
  • Oct 21, 2014 6:41pm Oct 21, 2014 6:41pm
Quoting MetaCoder
I have an EA that detects the most recent stochastic mismatch between the 1-hour and the 30-minute timeframes for any symbol you attach it to. It draws a horizontal line on the chart at the price where the mismatch was detected. It should not matter what timeframe you pick to attach the EA to. There are some refinements I might want to make but here it is, such as it is. I wrote it as an EA, not an indicator, because it might become the framework for an EA that gives alerts and/or places trades in fully-automatic mode. {file}
Nice work MC and thank you very much for sharing. Is it possible to make an indicator version of it too?
  • #10,700
  • Oct 21, 2014 6:50pm Oct 21, 2014 6:50pm
Quoting MetaCoder
I have an EA that detects the most recent stochastic mismatch between the 1-hour and the 30-minute timeframes for any symbol you attach it to. It draws a horizontal line on the chart at the price where the mismatch was detected. It should not matter what timeframe you pick to attach the EA to. There are some refinements I might want to make but here it is, such as it is. I wrote it as an EA, not an indicator, because it might become the framework for an EA that gives alerts and/or places trades in fully-automatic mode. {file}
Hi MetaCoder,

I just placed it on clean audusd chart .. but no show.. do you mind to put screen shot here, please.
cheers
hannele
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