Hi, this is in my opinion the one thing that differentiates the RS from standard indicators - it enables you to choose the parameters according to your quantitative preferences. hoss: look at the "Probability of full resolving" for the beginning, ...

The similarity system

Hi, I think that the situation is a little bit confusing here, and probably additionally so because of my clumsy notation. Sorry about this. The proposition essentially states that the price is "almost surely" recurrent. It does so in a way to ...

The similarity system

Hi, I believe it refers to all prices (it says "every price") in the interval that need to be passed through at least once in past/future h bars. (Just in case you use the RecurrenceStatistic indicator, there the transient price range is denoted by ...

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Check here. EA produces an offline chart that you can put the indicators on. k

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I do not think there is a "correct" way. I believe I do a very similar thing for the probabilities/time, I personally don't use the zone width much. Markov(less)ness is really a conditional probability. I guess any way you want to describe it is ...

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A very important observation! k

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Hi there, what occasionally fails are not the probabilities, it is the Markov property. Market does have a memory, and this shows itself in strong trends. This is why you can have several transient zones in succession. You would be wise not to trade ...

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Hi, k is usually not an integer. One could in principle set it to be integer in terms of pips or pip/10. k

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Proxime, I was giving it a thought and I concluded that the true value of your threads lies in your prodigious ability to annoy just the correct group of people - the smart pro traders. The clues they provide in this emotional state (and likely ...

Preferred Timeframe for Trading

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 ...

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Not necessarily. You can have two transient zones on two subsequent candles even if they have a minor overlap (a minor recurrent region - pullback; edit: see the above picture in LITEchild's post for a nice example on EURUSD!). They are independent ...

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Lag is not necessarily a bad thing... k

Preferred Timeframe for Trading

Hi, you're right. They are not really independent events so the probability is not really a product of two individual probabilities. It is quite possible to have two subsequent transient zones in cases of strong trend. k

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Hi there, Just to say, it is possible to use even standard fractals. Try calculating the probability that the fractal on H1 formed two hours ago and not taken out (so confirmed not to repaint) will be taken out within the following 12 hours. If you ...

Preferred Timeframe for Trading

Hi, I agree with your math (note the distinction between = and ~ in my previous post), but I do derive different conclusions. There are two big strategy paths: a) fundamental trading (for example, you'd do well by selling JPY now or buying EURCHF ...

Another Trading Journal

Hi saver0, if I'm not mistaken, he is referring to the triangular relationship (EUR/AUD)=(EUR/USD)/(AUD/USD) The second, more interesting, version would be: (EUR/AUD)~(EUR/AUD)/(AUD/USD) This synthetic price is IMHO designed to show the risk offset ...

Another Trading Journal

Hi there, A very simple strategy for your consideration: Recurrence Statistic v3 applied to the H1 timeframe on EURUSD indicates that the probability of clearing a h=4 fractal zone if it has not been cleared within 4 hours after its inception is ...

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Hi all, just to say, I fully agree with vlady and LITEchild that there are many ways to trade transient zones. I was shocked the other day when leeshindig showed one way of using the RecurrenceStatistic indicator of which I did not think before, so ...

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This is one of a small number of truly brilliant threads on FF. Thanks for sharing! k

Another Trading Journal

Hi yuxuan89, it is not necessarily the most self-explanatory indicator out there, but I think it is quite powerful in the one thing it does. I personally think it is a good basis to formulate a successful probabilistic strategy, by itself or coupled ...

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