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Pure & simple Abonacci system

  • #21
  • Mar 18, 2014 10:43am Mar 18, 2014 10:43am
This is an example using the ES S+P futures. These are from yesterdays levels. Another quick question. If a target or stop is not hit within todays trading I assume I reset the levels and manage the trade on the new levels (High/Low) that will be created today. Is that right?
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  • #22
  • Mar 18, 2014 10:53am Mar 18, 2014 10:53am
Quoting hollowhead
First off, all kudos and respect goes to 'Bobi' of Abonacci fame, who is a genius and legend in my eyes, much (if not most) of this system is derived from his studies and observations. I won't go into it here, but you can read about his work here. Second, hats of to ubenders - who appears to have put 2 and 2 together and made 4 (which is quite a feat in this business). He may well have discovered a missing link for those of us who have been trading the Abonacci way. So some rules (as...
Hi

What is size and baseline for Eur/Usd Pair?
Love for all; Hatred for none.
  • #23
  • Mar 18, 2014 10:57am Mar 18, 2014 10:57am
Quoting tmoney5474
Hi hollowhead, great post. Love the strategy! Sound and simple! Want to make sure I get this right. The intervals are the ranges between the fib numbers (38.2, 50, 61.8, 76.4) I assume. The phase is the total range from high to low, correct? Do you only use yearly levels or do you also use daily and weekly levels for phase totals and use the same exact strategy on the shorter time frames? Last question, not sure where the murry math comes into play. Using just the basic concept seems fine without any added tools. Maybe you can give me some clearification...
We are using Abonacci rules to trade Murrey Math phases/intervals. The Abonacci template is used with a Murrey Math level to create phases or intervals and we trade it using Bobis rules.
  • #24
  • Mar 18, 2014 11:00am Mar 18, 2014 11:00am
Quoting aahmad29
{quote} Hi What is size and baseline for Eur/Usd Pair?
244 pips 1.3672
  • #25
  • Mar 18, 2014 11:06am Mar 18, 2014 11:06am
Quoting tmoney5474
Hi hollowhead, great post. Love the strategy! Sound and simple! Want to make sure I get this right. The intervals are the ranges between the fib numbers (38.2, 50, 61.8, 76.4) I assume. The phase is the total range from high to low, correct? Do you only use yearly levels or do you also use daily and weekly levels for phase totals and use the same exact strategy on the shorter time frames? Last question, not sure where the murry math comes into play. Using just the basic concept seems fine without any added tools. Maybe you can give me some clearification...
Hi tmoney - welcome to the thread.

If we go back to beginning, among other things Bobi Abonacci discovered that the markets are not random and move within phases - not a new revelation in itself, repeating patterns etc. But he also discoverd what appears to be a universal formula showing where the market would move to within these phases - he calls them 'pre-determined support and resistance'. The calculation is done using the previous year's high, low and close. But, he is unable to share the formula for the calculation as it is now the property of his company. He has established 42 templates of different sizes and it is very accurate and complicated.

The calculation his formula does provides a final number (price) and that is the 'baseline' for that pair (and what is entered into the abonacci indicator). When the baseline and 'template size' (103, 220, 680, 965 etc) is entered into the calculator you have levels divided up by fib ranges. For each template he has rules for trading those fibs.

He has been good enough to share the baselines for a few pairs and for a handful of different 'templates'. While many of us have been able to make good profits with those, I and others have been aware that the future for us is limited and wholly dependent on Bobi to provide the baselines each year - so an opportunity to find another way to trade his system on a wider variety of pairs and for many years to be is something to pursue.

ubender, presenter the idea of using Murrey Math levels as the baselines - this then gives us phases which we could apply the abonacci fibs and trade using a variation of bobi's rules.

So, if you enter into the MM indicator 256 trading days (a year) you can basically get phases for a year and by entering one of the MM levels as a baseline on the abonacci indi you can trade the MM levels. When I refer to a phase I am taking about the 0%-100% fib range, levels are the MM levels.

If you take a quick look at the first 15 pages of Bobi's thread that I link to in the first post - it may help give a little more context.

I will try and put this all down (explained better). Probably a PDF which I'll put put on the first post.

Hope that might clarify a little.

Going offline for a while - will be back later.
  • #26
  • Mar 18, 2014 12:11pm Mar 18, 2014 12:11pm
Quoting ubenders
{quote} 244 pips 1.3672
Thanks
Love for all; Hatred for none.
  • #27
  • Mar 18, 2014 3:24pm Mar 18, 2014 3:24pm
I like the simplicity of this system and will be following with interest. Thanks Hollowhead,
  • #28
  • Mar 18, 2014 4:39pm Mar 18, 2014 4:39pm
Hollowhead and Unbender this is a job well done this I guess will be the thread for me to follow closely even though I have not understood it fully yet I beginning to feel comfortable with it
  • #29
  • Mar 18, 2014 5:42pm Mar 18, 2014 5:42pm
I've updated post 1 with a little more guidelines on how to set the charts up. I hope this is clearer.
  • #30
  • Mar 18, 2014 6:03pm Mar 18, 2014 6:03pm
Hollow, you have a typo in the revised first post. Step 6 I think you mean that these will NOW line up.
  • #31
  • Mar 18, 2014 6:35pm Mar 18, 2014 6:35pm
Quoting bobha
Hollow, you have a typo in the revised first post. Step 6 I think you mean that these will NOW line up.
Schoolboy error that changed the meaning somewhat . Thanks for letting me know bobha.
  • #32
  • Mar 18, 2014 7:08pm Mar 18, 2014 7:08pm
Quoting hollowhead
I've updated post 1 with a little more guidelines on how to set the charts up. I hope this is clearer.
Thank you! This helped!
  • #33
  • Mar 18, 2014 8:15pm Mar 18, 2014 8:15pm
Haven't been on forex factory for several days so I just now discovered your new thread. I am looking forward
to experimenting with this new abonacci murray math approach when I have time. Thanks Hollowhead for
starting this thread. I know it will be well run as evidenced by your coordination of the abonacci thread. As discussed
on the other thread, I have been consistently profitable with the way I trade the 103 abonacci template. This should
be fun.
  • #34
  • Mar 18, 2014 8:47pm Mar 18, 2014 8:47pm
Subscribe..

Need to find out more.. esp. how to determine the P, MMPeriod, lenght and baseline.
  • #35
  • Mar 19, 2014 1:16am Mar 19, 2014 1:16am
Quoting hollowhead
I've updated post 1 with a little more guidelines on how to set the charts up. I hope this is clearer.


Thanks Hollowhead,

Charts now set up on the 4H TF.
  • #36
  • Mar 19, 2014 5:14am Mar 19, 2014 5:14am
Hollowhead.
I have taken this trade on Demo. NZDUSD 4H, Price is in an uptrend rising from the phase below through 76.4% then through 100%- 0% of the new phase. Long trade at the 23.6% fib with target of 76.4% fib (0.87312). Move stop to BE at 50%fib (0.86668). Is this OK?
Thanks in advance.

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  • #37
  • Mar 19, 2014 5:41am Mar 19, 2014 5:41am
Quoting nickcnew
Hollowhead. I have taken this trade on Demo. NZDUSD 4H, Price is in an uptrend rising from the phase below through 76.4% then through 100%- 0% of the new phase. Long trade at the 23.6% fib with target of 76.4% fib (0.87312). Move stop to BE at 50%fib (0.86668). Is this OK? Thanks in advance. {image}
It looks like a good trade to me. It is possibly retesting the 23.6%, so could be resistance turning support.
  • #38
  • Mar 19, 2014 6:08am Mar 19, 2014 6:08am
How are you coming up with the length settings? I assume it has something to due about the yearly range but I want to make sure I fully understand.
  • #39
  • Mar 19, 2014 6:28am Mar 19, 2014 6:28am
Quoting tmoney5474
How are you coming up with the length settings? I assume it has something to due about the yearly range but I want to make sure I fully understand.
The length settings is the distance between MM levels. All we are doing is creating abonacci phases between the MM levels. If you set the MM 'P' to be for 256 (a year's trading days), then we have annual levels.

As long as the 0%/100% line up with the MM Levels we can trade it. For the pairs I have tested non-yen pairs, the MM levels can be broken up into phase lengths of multiples of 122, 244, 488. For yen pairs the MM levels can be broken up into phase lengths of mutliples of 156, 312, 625.

The longer the length, the bigger the phase. So you could break up the 1D MM levels into several smaller abonacci phases. For some who prefer to day trade, this would make sense, (but I think there will have more stop-outs). For those who are happy to sit on a trade for a few days or more, then they would use larger phase lengths and trade the abonacci levels between higher TF MM levels.

So we are working on refining rules and MM to trade the phases. We want to spot price behaviour in relation to the levels in abonacci phases and the MM levels.
  • #40
  • Mar 19, 2014 7:13am Mar 19, 2014 7:13am
GBPCAD on 4H TF. This trade fits the criteria of moving through 76.4% and 100% of previous phase and trade taken at 23.6%. Previous resistance here at the 1.8600 level. Target at 76.4% level (1.8740) with BE at 50% (1.8676). Stop 10 pips below the 0%.

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