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The similarity system

Quoting kprsa
{quote} one should just simply measure in the past the relative frequency of what is now going on. to do this, you find the number of same situation N in the past, and measure the number of times it was a certain type of outcome, say N1, and calculate the relative frequency of this to be f=N1/N. Than you say that if there is a sufficient number of situations where this outcome has happened, you have your probability p=h. this is all you need to do. in your case you would be looking at all the "potential" h-transient zones in the past, and let us...
Now to be close to the true probability p, you can add all time frames and even all pairs. The mt4 platform can take about 250000 bars for a given time-frame. If you do your homework well you should be dealing with approximately 23,000,000 bars. That is very close to enough data.
The truth is real! How you apply it is another matter.
How "p" is properly calculate unknown. By using relative frequencies gives an approximation of a given pattern, but not the actual probability of that pattern.
A "HHHB {H}" can have a relative frequency of 800 occurrences
"HHHB {B}" can have a relative frequency of 120 occurrences.
By frequency you know " HHHB{H}" is most likely due to the occurrences but that's not the real likelihood that "HHHB{H}" happen.
Is that correct?
The sub-sequence theorem:
When you have constructed a partial DNA for your currency pair; the following theorem is extremely useful for spotting market trends embedded within the DNA. In fact, what it actually reveals to you is the following truth: Trends exist everywhere.
Attached Image (click to enlarge)
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It will hold and so you can analyse each bar....
Attached Image (click to enlarge)
Click to Enlarge Name: c.PNG Size: 119 KB
You can choose what your sequence of real numbers will be : value of HIGH/LOW.CLOSE/OPEN maybe. I am sure you can see the gold in there.
Quoting Eurusdd
The sub-sequence theorem
Whoa. There goes another month...
Thanks for sharing!

Quoting Eurusdd
For example...
Whoa.

k
Thank you for your The similarity system thread, Eurusdd.

I learn a lot from you. You are a great teacher.


The sub-sequence theorem seen like the hardest thing to digest for now.
When you lose, I'm the loudest who laugh at your face :))
Quoting Eurusdd
For example, suppose you chose your reals to be high of bars. The on the daily chart of you set n=2 then you need to look in the DNA for 5 bars. Let us suppose the highs of the last 4 bars are 1.2344, 1.2566, 1.2211, 1.2222, ????? What will be ????? Since there must be a decreasing or increasing 3-subsequence, the high of the next bar must be above 1.2522 or below 1.2211. Just two options.
follow the flow
Uffff, very powerful.
I have no words.
Quoting Kiads
{quote} Yup, your Recurrence Indi and my Zigzag Marked Indi... {image}

Kiads,

Your Zigzag chart is very informative as usual. I have been following your writings and charts for some time now
and am really appreciative of your insights and your ability to make things easily understood.

I did a search for your "Zigzag Marked Indi" but failed to get any result for the indicator for downloading.

Could you please let me know if it is available and where. Thank you and keep up the good work. I look forward
to your next brilliance.
The subsequence is the key step to revolution. The subsequence theorem can allow you to zero in on the market, if you have the time to look for those sequences.
Can't see where the 1.2522 comes from... (typo?)
Quoting hilavoku
Can't see where the 1.2522 comes from... (typo?)
you are right. it is 1.2222. I changed it. TYPO
Quoting burnssss
Uffff, very powerful. I have no words.
Yes Burnsss. powerful
Thank you, Eurusdd.
I start to understand your sub-sequence theorem and i start to see some light
When you lose, I'm the loudest who laugh at your face :))
This theorem is not mine. There are about 22 different proofs of the theorem. If it is true - I cannot say till I prove it myself - then it is the most powerful tool apart from TZ that I have presented here.
This theorem means MONEY, if true!

The truth of the statement depends on what they mean by subsequence. If they mean a sequence defined linearly on n then I will say there are cases where it is not true. If they allow any possible sequence on n then, yes it is true.

So, if the latter is the case then there is one more option for the example I gave. Still it is a powerful tool.
Quoting Eurusdd
For example, suppose you chose your reals to be high of bars. The on the daily chart if you set n=2 then you need to look in the DNA for 5 bars. Let us suppose the highs of the last 4 bars are 1.2344, 1.2566, 1.2211, 1.2222, ????? What will be ????? Since there must be a decreasing or increasing 3-subsequence, the high of the next bar must be above 1.2222 or below 1.2211. Just two options.
And why the high of the next bar can not be between 1.2222 and 1.2211?

Imagine candle with the high at 1.2222 closes at 1.2215. Why the next candle (opening at 1.2215) can not have a high at 1.2220?
Thanks Captain!

(Exhales)
Bloody hell this is INTENSE!!
LOL

There is so much power in this I can't even begin to start....
Glad I was sipping coffee whilst I read that. It is absolutely beyond me at the moment.... except for the example.

K, I will definitely need your help!!
A pip is only worth it if you know how much you risked to earn it
I asked myself if Xi1 , Xi2 , ... are consecutive prices or just picked at starting point Xi1 and then jumping from one higher price to the next higher price within the co-domain. ...

PS: I've just read your last post EURUSDD. I think you are asking yourself the same thing.
Quoting vlady1974
Thanks Captain! (Exhales) Bloody hell this is INTENSE!! LOL There is so much power in this I can't even begin to start.... Glad I was sipping coffee whilst I read that. It is absolutely beyond me at the moment.... except for the example. K, I will definitely need your help!!
try to put the numbers from the expample into the theorem..
follow the flow
without any calculation I have already/only 2 options in anytime
up or down

Quoting Eurusdd
For example, suppose you chose your reals to be high of bars. The on the daily chart if you set n=2 then you need to look in the DNA for 5 bars. Let us suppose the highs of the last 4 bars are 1.2344, 1.2566, 1.2211, 1.2222, ????? What will be ????? Since there must be a decreasing or increasing 3-subsequence, the high of the next bar must be above 1.2222 or below 1.2211. Just two options.
My Best Trade is Next Trade!
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