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 it seems most threads need them).

1. Be respectful

That's about it - but I might add to that if it seems necessary.

So to the system. First let me say this is a work in progress, but based on proven and profitable systems. One reason for the thread is to refine it.

**BUT**that does not mean refining by throwing every indicator you can imagine at it - the beauty of this system is the simplicity. It is more refining through observation we're looking for.

**Charts**

We only need two indicators

1. Abonacci indicator

2. Murrey Math (MM) indicator

Nothing else is needed. Really. No REALLY.

**Chart setup**(this is the most complicated bit, but once done everything is set)

1. Open a chart (timeframe doesn't really matter but I go for 1h or 4hr)

2. Apply template below.

3. Open Murrey Math indcator and change to the following. 'P' to '256' and 'MMPeriod' to '1440'

4. Open Abonacci Template

For pairs with price format x.xxxxx 'Length' 122 (1h TF trading) or 244 (4h TF trading) or 488 (Daily TF trading)

For pairs with price format xx.xxxx or xxx.xxx (usually yen pairs) change 'Length' to 156 (30m/1h TF trading) or 312 (4h TF trading) or 625 (Daily TF trading) and

5. Copy one of the Murrey Math levels (preferably the Support/Resistance Pivot Point level (blue)) into the 'Baseline box'6. Your abonacci 100% levels should now line up with the MM levels.

**Trading**

__Option 1.__Long Trade - Price comes from 76.4% level rises above 0%/100% into the phase above. Enter long when price breaks the 23.6%. Take Profit is the 76.4% level.

Short Trade - Price comes from 23.6% level drops Below 0%/100% into the phase below. Enter short when price breaks the 76.4%. Take Profit is the 23.6% level.

You may want to move SL to BE and/or take a 1/3 off when price reaches 50%, and/or take another 1/3 off when price reaches 61.8% (long)/23.6% (short)

You will see that what we are aiming to do is take a slice out of the action when price is moving between levels.

**Stop Loss**

I suggest either

10 pips below (longs) or above (shorts) the 100% level

or

close and reverse your position at the 76.4% level in the phase below (longs), 23.6% level (shorts).

As with all systems, there will be losses. So the importance of finding the right money management to fit your trading style and risk tolerance cannot be over emphasised.

Examples

*Option 2**Coming soon*

**Sizes and baselines for pairs (bolded numbers are a 1:1 fit. ie 1 phase of abonacci fits the exact distance between 2 Murrey Math levels)**

**GBP/USD**

Size - 122, **244** or 488

Baseline - 1.5625

**GBP/JPY**

Size - 156, 312 or **625**

Baseline - 150

**GBP/AUD**

Size - 122, 244 or **488**

Baseline 1.95313

**EUR/USD**

Size - **122**, 244 or 488

Baseline - 1.31836

**EUR/AUD**

Size - 122, 244 or **488**

Baseline - 1.36719

**USD/CHF**

Size - **122**, 244 or 488

Baseline - 0.92773

**USD/JPY**

Size - 156, **312** or 625

Baseline - 87.5

**EUR/JPY**

Size - 156, 312 or **625**

Baseline - 125

**AUD/NZD**

Size - 122, 244 or **488**

Baseline - 0.97656

**USD/CAD**

Size - **122**, 244 or 488

Baseline - 1.02539

**AUD/USD**

Size - 122, **244** or 488

Baseline - 0.97656

**AUD/JPY**

Size - 156, **312** or 625

Baseline - 87.5

**EUR/GBP**

Size - **122**, 244 or 488

Baseline - 0.83008

**NZD/USD**

Size - **122**, 244 or 488

Baseline - 0.83008

**GBP/CHF**

Size - **122**, 244 or 488

Baseline - 1.46484

**NZD/JPY**

Size - 156, **312** or 625

Baseline - 87.5

**EUR/CAD**

Size - 122, **244** or 488

Baseline - 1.36719

**XAU/USD**

Size - **3125**, 6250

Baseline - 1500.00

Another approach worth exploring is calculating using a bigger size template (doesn’t matter how big as long as it matches the MM levels) and then build multiple entries (equity millipede) for swing trading.

As the thread develops (hopefully), I will add links or text from posts where members contribute refinements and developments.