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The ZZBB is a uiscietionaiy methou of tiauing that evolveu fiom concepts posteu
on a Foiex Factoiy Thieau calleu "The Similaiity System" cieateu by Euiusuu.

0vei a peiiou of just ovei 1 month, one paiticulai technique was testeu anu
enhanceu in a live scenaiio using a Bemo tiauing account. I call this Attempt #1.
The iesult was to tuin $Suuu into $2S,uuu in just ovei S weeks.

Sceptical of the iesults, I cieateu Attempt #2 anu associateu this with a Tiaue
Exploiei anu my own thieau, "Similaiity Tiauing - The ZZBB Nethou". Whilst
the initial iesults weie not gieat at all, the vaiious techniques anu methous aie
still piomising.

The eviuence shows that it neeus to be incoipoiateu into othei complementaiy
tiauing techniques anu hopefully this uocument can seive to uiscuss this fuithei.


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The authoi of the oiiginal methou technique is the postei who goes by the
useiname Euiusuu.

Any fuithei enhancement is the amalgamation of woik uone by myself anu othei
posteis in the Foiex Factoiy thieau.

The methou outlineu in this uocument uoes not puipoit to pioviue tiauing
auvice oi iecommenuation.


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1.u Fiist veision

01, 2233 0%$()/4 5+$/
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Two things set uiiectional bias:

Cuiient ZigZag alignment
SuuENA

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When the 4B, 1B, 1SN swings aie all in alignment, the tiauing bias is stiongei.
Theiefoie:

When ZZ Bottom is confiimeu, bias is Bullish anu tiaues aie Long
When ZZ Top is confiimeu, bias is Beaiish anu tiaues aie Shoit

When the 4B anu 1B aie not in alignment, it is haiuei to co-oiuinate youi lowei
timefiame bias anu you will finu that inuicatoi iepaints occui a lot moie because
piice will be tiying to iesolve highei timefiame swing.

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When piice is above the SuuENA the bias is Long. When piice is below the
SuuENA the bias is Shoit.

The Suu exponential moving aveiage woiks best ovei longei-teim timefiames.

When piice tiansitions fiom eithei Long to Shoit, the effect on Zig Zags becomes
less pieuictable.


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Baseu on the above ciiteiia, theie aie a numbei of ways to appioach inuiviuual
tiauing plans:

With Tienu - take the 1SN, SN anu 1N timefiames anu finu the
combination that is in alignment with the 4B oi 1B anu tiaue with it.

Counteitienu - take the 1SN, SN anu 1N timefiames, take the highest
timefiame bias anu then tiaue against it until they aie in alignment

0se the SuuENA line as suppoit oi iesistance on each tiauable
timefiame: 1N, SN, 1SN, SuN, 1B, 4B

0se the Stochastic Close 0utsiue of Bollingei Banu (C0BB) to pioviue
highei piobability of a swing being confiimeu.

Combine othei establisheu tools such as Fibonacci Retiacements, Pivot
Points, NACB anu RSI to boost confiuence in uiiection anu tuining points.

0sing the Bissimilaiity Inuicatoi by Ralome which piouuces zones of
uissimilaiity (BS) as Piice Taigets in auuition to the othei plans

2233 G,& *./*,50!
!H6<>F
Piice cieates a pattein on a chait by going in 1 of S uiiections:

0P
B0WN
SIBEWAYS

Within each of these uiiection movements is the "holy giail" of all piice
movements: The Change In Tienu

When piice is going 0P anu then changes so that it is going B0WN, it usually
cieates a T0P. The change fiom an up uiiection to a uown uiiection is calleu a
swing top.










In the same way, but upsiue uown, when piice is going B0WN anu then changes
so that it is going 0P, it usually cieates a B0TT0N. The change fiom an up
uiiection to a uown uiiection is calleu a swing bottom.

In the uiawing above, the ieu aiiows going up show that the uiiection stops at
the highest bai until the next bai's lowest piice is lowei than the pievious bai's
lowest piice. When that happens - a SWINu T0P IS F0RNEB.

When the aiiow is pointing uown, the uiiection stops when the next bai's
highest piice is highei than the pievious bai's highest piice. When that happens
a SWINu B0TT0N IS F0RNEB.

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Tiauing with Swings sounus so simple. It is.
But its simplicity is what makes applying the concept in ieal tiauing so uifficult.

Fiistly, piice uoes not always behave like that shown above. Piice can be violent
anu fast. Piice can be the slow anu lazy. Piice can cieate patteins one uay oi one
week anu then be completely ianuom the next.

Piice nevei tiavels in Stiaight Lines unless it's ciashing oi ieacting to news - anu
this methou uoes not attempt to auuiess these.

Seconuly, being able to ieau Swing Tops anu Bottoms is extiemely haiu because
when you aie looking at a scieen IN REAL TINE.. You B0 N0T KN0W WBEN oi
AT WBAT PRICE A CBANuE IN TRENB WILL 0CC0RR.

That's the absolute basic weakness of swings. This neeus to be unueistoou.

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The gieat thing about swings is that it lets you know WBAT KINB of change in
tienu is supposeu to come next.

It seems ciazy anu stupiuly simple, but once a Swing Bottom has occuiieu anu
been confiimeu then you know that a Swing Top N0ST C0NE NEXT.

If you knew that in auvance, you woulu instantly be able to make a tiauing
uecision anu act on it with moie confiuence. So, in oui example a Swing Bottom
has just been confiimeu, anu you know that a Swing Top must come next so you
coulu ueciue:

1. To Tiaue with the Tienu (go Long)
2. Tiaue at the Countei Tienu (wait foi Swing Top confiimation anu Shoit)
S. Bo Nothing

At this BASIC LEvEL of analysis, you coulu uefinitely have a tiauable stiategy.
Not that it woulu be piofitable.. but it woulu be a tiauing stiategy.

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A ZigZag is basically a stiaight line that connects a Swing Top to a Swing Bottom.
When they aie all connecteu, it visually foims a zigzag.

Beie is the latest 1B chait with the ZigZag Inuicatoi supeiimposeu on anothei
NT4 inuicatoi calleu SemafoiS that piouuces the Colouieu Ciicleu Numbeis.
Beie I use *S* as inuicatois of ZigZag Tops (ZZTop) anu ZigZag Bottoms (ZZBot).



Inteipieting ZigZags uepenu on the Timefiame that you aie looking at. Bon't
foiget this! A ZigZag on a 4B is uiffeient fiom a SN zigziag.. anu will have
uiffeient implications foi tiauing, even if the shapes aie the same.

The NT4 platfoim has a ZigZag inuicatoi that calculates this foi you. Ny settings
aie:





The BC($=$6CDDC0$3'>)% inuicatoi has the uefault settings below:



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Now befoie I uelve into this topic, I uiu a lot of ieseaich on ZigZag inuicatois. It's
actually quite complicateu to piouuce what a Kinueigaiten Chilu can uo with
theii eyes.

As I mentioneu above, the pioblem with swings is that you must continue to
uiaw the line until the next bai bieaks the tienu. You have no iuea what the next
bai will uo.

What is ceitain is that piice action moves in waves (but I won't go into an Elliot
Wave uiscussion heie) in a way that fiequently cieates tops anu bottoms.

These waves may not necessaiily be the swing top oi bottom we aie looking foi.

Piice coulu go foi a iest anu go siueways befoie continuing the tienu. this will
cause loaus of iepaints. This siueways movement can last a shoit time, oi it
coulu be uays, weeks oi months.

Because of


It is this iepainting pioblem that Euiusuu uiscoveieu a paitial solution to using
Bollingei Banus. By combining the ZigZag with anothei inuicatoi that ieacts to
piice in a ielateu way that the zigzag uoes, then we can combine the two
togethei anu finu wheie they aie similai anu wheie they inuicate uissimilaiity.

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Fiom the posts in the oiiginal thieau, the Bollingei Banus weie applieu to both
the Piice Chait anu Stochastic chait.

When set to 24 anu 2 stanuaiu ueviations, then the Bollingei Banus piesent a
bounuaiy foi when we expect piice stochastic to iemain stable.

But fiom the uiscussion on ZigZags we know that piice ebbs anu flows fiom Top
to Bottom anu back to Top anu so on.

The Key 0sage of the Bollingei Banu is to visually uisplay when Piice Stochastic
has ieacheu its maximum extieme. That is, piice liteially goes outsiue the
bounuaiies.

At this extieme point the likelihoou of a ieveisal Change In Tienu is high. But we
have to acknowleuge that not eveiy inciuent wheie piicestochastic goes ovei
the bounuaiy means that a piice ieveisal will occui.

When combineu with ZigZags, you'ie able to see that swing tuining points occui
when the piice anu stochastic aie outsiue the Bollingei Banu.

In the example below fiom a iecent post, I am highlighting that the Bottoms aie
mostly outsiue the Bollingei Banus anu the Stochastic (2
nu
winuow) all have the
ieu line outsiue the Bollingei Banu in auuition to the ieu line being below the
blue line.



I woulu say that 9u% of tuining points have the piicestochastic outsiue the
Bollingei Banus anu theie aie 1u% wheie the tuining points occui insiue the
BBs. To me that's a pietty goou peicentage.


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Piice can anu uoes exceeu the Bollingei Banus many times without cieating a
swing point.

But that uoes not mean you cannot use BBs as a swing confiimation inuicatoi. In
fact I look foi piices to exceeu the BB as a goou confiimation foi a tuin.

What can also happen is that the Stochastic can also exceeu its own Bollingei
Banu. This was one of the 2
nu
examples of "similaiity" that Euiusuu put up on the
oiiginal thieau.

That is, the Piice & BB winuow shoulu be iuentical to the Stochastic & BB
winuow. Whenevei theie was Bissimilaiity (BS), it maikeu a piice level in which
piice action woulu ietuin to once Similaiity (SN) ietuineu.

0ne of the many examples Euiusuu highlighteu was that Piice anu Stoch both
closeu outsiue of the Bollingei Banus whenevei a valiu swing was piouuceu.

Bence you hau a combineu inuicatoi that can pioviue gieatei confiuence. When
you stait to stack these inuicatois togethei it can be a bettei piobability.

Foi example foi the E0R0SB foiex paii:

Theie is a confiimeu ZZT on the 4B
Theie is a confiimeu ZZB on the 1B
ZZ Top is foimeu on the 1SN
Semafoi S piints at the ZZTop
Piice closes outsiue of Bollingei Banu
Stochastic closes outsiue of Bollingei Banu
The ZZ Top that just foimeu on the 1SN is now also on the 1B
Piice is 1Su points above SuuENA
Below cuiient piice about 7u points away is a BS Zone that is Su pips tall.

In this hypothetical case, we have a stiong ZZTop signal that we can shoit.

If we uo entei at cuiient piice, we coulu get a possible 7u-pip taiget to the BS
zone then exit. 0i we coulu shoit anu play foi 1uu pips which closes the entiie
BS zone.

Eithei way, the tiaue plan is a shoit because we have aligneu inuicatois.






01, O1 ($)+& 5%,()*0)./ #,01.(
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I ueviseu this methou aftei Euiusuu maue a comment in a post on the thieau. Be
mentioneu that we all hau the ingieuients to be able to pieuict uaily uiiection
within 1 houi of the uay. I askeu whethei he meant we hau all the inuicatois on
the chait anu he simply saiu yes.

As a iesult, I hau obseiveu all of the inuicatois that appeai in this uocument:

SuuENA
1B timefiame
Piice anu Bollingei Banu
Stochastic anu Bollingei Banu

The tiauing iules that I then uevelopeu came about fiom obseiving piice action
going back to 1
st
}anuaiy 2u1S. I hau posteu that I hau a success iate of 7u%

The tiauing iules aie below.


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1H timeframe
300EMA
ZigZag set to 24,1,1
Price in BB set to 24
Price with 1EMA in BB
Stoch 75,1,1 in BB set to 24



Rules
If PRICE > 300EMA
o ZigZag is also above 300EMA and slopes UPWARD
o At Midnight + 1
! if last ZigZag swing is a ZZBOT and it is sloping upward and
Price stays on top half of BB then UP DAY
! if StochBB is above 50 line,
! if Stoch COBB and pierces 50 line for the first time it will
bounce and will coincide with a ZZBOT
! if PRICE starts to cross the BBMID AND THE ZIGZAG
and StochBB to also cross the BBMID then DOWN
DAY
look for a possible intra day swing back over the ZZ
line and a closeswing and a ZZTOP then UP DAY





If PRICE < 300EMA
o ZigZag is also below 300EMA and slopes DOWNWARD
o At Midnight + 1,
! if Price is in lower half of BB then DOWN DAY
! also, if last ZigZag swing is a ZZTOP and it is sloping
upward
! if StochBB is below 50 line,
! if Stoch COBB and pierces 50 line for the first time it will
bounce and will coincide with a ZZBOT


5;F: $<B=MF6F
Since this fiist Bemo Test in }ulyAugust, I have obseiveu the iealisation of an
iuea oi thought that occuiieu uuiing the tests - "What woulu happen when piice
appioaches the SuuENA anu ciosses it."

Well this happeneu in late AugustSeptembei on the 1B chait. Anu instantly, the
ability to pieuict uaily uiiection was extiaoiuinaiily uifficult.

This means that TRENBINu PRICES make the above methou woik. But CBANuES
IN TRENB (FR0N AB0vE SuuENA T0 BEL0W SuuENA) cieate uisiuptive anu
unpieuictable patteins.

This means that just because it ciosseu south of the SuuENA uoesn't mean I can
simply ieveise all the signals. As of this wiiting, Piice is potentially going to
ietiace back towaius the SuuENA on the 1B.

As a iesult of this tuibulence I have also staiteu looking at the 4B. Suipiisingly,
the SuuENA coinciueu with a Fibonacci Retiacement Level Su%. I hau not
obseiveu this befoie - but piice iejecteu this piice level with gieat stiength.