Are support and resistance levels predetermined?

After 3 years of introduction of Abonacci System (Sep 15, 2010) , many things have been changed in the concept . My Idea caused many people to try to achieve a way or a formula to create a template based trading system. They tried to create templates to generate support and resistance levels and along with a strategy to find the breakout levels and targets in the beginning day of the month as I did and introduced Template 3 (T3) and Template 4(T4) and recently T4Y. Some of them contacted me and talked about what they are doing and spoke about their success of achievement. I tried to broach the head to get new ideas and I believe I was partially successful. But many of them and also some other traders asked about my theory that I claimed about predetermination of the markets. They wanted to show them:

-Why I believe that markets are predetermined?


-Why I claim that we should not trust the shape of the wave to find support and resistance levels?

-Why I say no indicator is trustable?

-Is that true to say we should be able to find the trend and target of price just by knowing HLC of last year?

-Do we have to care about news and follow them?

-Are we able to find the main support and resistance levels just by knowing HLC of the last year or month? If we can, how accurate they are?

- Are the bankers always in profit? (as they are said that are equipped with banking system trading!)Do they fail in their analysis? Or they never fail as they are market mover!


-In this thread I am going to answer some of the questions about my Predetermination Theory in the market. And also I will provide you some templates that can show support and resistance levels for entire of the year with 90-100% accuracy. This job can be done for whole the year and is valid for one year. All entries and target for both bulls and bears are given and apparent.

I know the theory that I believe is controversial. So if you can not accept it or its against your belief , just skip this thread and no need to use bad language or satirize.

Res

My theory is supposed to explain that the future of the markets are set in a defined trend and are not changeable, even by news. News will make acceleration to complete the predefined trend and target. Technicians seek to profit by anticipating the mass psychological biases of buyers and sellers in a broad range of markets. All Support and Resistance levels are defined in the 1st day of new year and are constant up to end of the year. For the new year , No past support and resistance levels are valid and new levels are defined and generated in the first day of new year.
By believing this theory, I tried to find out why there are thousands of strategies in traditional technical analysis but none of them could appoint adequate breakout levels, reversal points, resistance and support levels all together.

I know the theory that I believe is controversial. But this is what I utterly believe and caused me to find a way to formulate the movement of the any market and come out of traditional way of trading. The formula that I have discovered is unique and never has been discussed or presented heretofore (at least as far as I know. If it has already been presented, I have not found any)
Now, probably you want to ask, have I found those all levels I talked about?(support and resistance levels, breakouts ,…). I should answer NO. I have just found some of them and still researching on behavior of the pairs. But what I have found, is following up the theory and I can claim I have not found any other tools or strategy to find the support and resistance levels in the beginning of the year with high accuracy.

I am known by presenting EUR/USD template based trading. But predetermination theory is applicable to all markets and I can generate the templates for any pair or any stock(better to say any chart having a period with HIGH,LOW,CLOSE for the specific period).

- in this method of trading , we need nothing but to draw some phases filled by Fibonacci levels .
-That is all and we use no indicator or any traditional analyzing tools.
-Here we will not talk about fake breakout as we believe there is no fake breakout in the market.
-We use no candlestick patterns.
-We will not analyze the market from the shape or pattern that is generated.
-We do not care what kind of charting is used . Just we need to know what the price is. Price is enough for trading as we have breakout and support & resistance levels and the targets as well.
-The shape of the candle is not important in our trading and when price enters in a specific level , that's all.
-We do not care about the result of news.

The attached indicator is the only tool we use to analyze the market. We use it to draw abonacci phases and fibonacci levels.
To use this indicator , you should use the latest update of metatrader.

Subscribed. Thanks

regards

I have discovered that price defines some rooms for itself and moves in those rooms. The rooms that I call them "Phase" are defined in the first day of the year.
To find the baseline of the phase , we need nothing but HLC of the last year. That's all!
High,Low,Close of the last year will cause the market to define specific levels of support and resistance.

To understand better what I mean , its better to introduce a new template named "T5-965".

The length of the phase is 965 pips. I have discovered that nearly 90% of the market instruments are reacting and moving in a range of 965 pips.
The rule to find the trend is that , when price travels from below 23.6% level and breaks 50% , so the trend will become bullish and should and must reach 76.4% and when price travels from above 76.4% level and breaks 50% , so the trend will become bearish and should and must reach 23.6%

The rule is constant and can be repeated several times in a year.
For 2013 , when price (EUR/USD) breaks 3116 , price should reach 2861. its very easy to understand and clear. No need to use any other tools.
I say , THE MARKET IS PREDETERMINED TO MOVE from 50% to 76.4% or 23.6% and nothing can change the trend and stop to reach the target and its a must for the market to complete to the target.

Subscribed. Look forward to your posts aebab.

Another example:
AUD/USD - 2013 . The Baseline is 1.0841

Hello. I am curious, hwo did you come up with the number 965 for the phase? And will this remain constant or will it change over time? And do you determine the baseline at the end of the calendar year for the new year? Thank you, very interesting concept!

hi mr abonacci

1-where is best level for stop loss?

2-now target aud/usd is 0.9648?(LEVEL 76%)

thanks

Hello,
Its a long story and complicated. The good side of the work is that 965 pips is common for all markets and it remain constant forever. Just the base line is moved in the beginning of the new year. The phase levels and the rules are constant for the entire of the calculated year.

Another example: GBP_USD
The baseline is 1.6635 and the phase size=965 pips

Hi

How is the baseline determined?

To find out and realize why there is retracement in the market, I will post some other templates later .

The baseline is determined by using HLC of the last year and some complicated math works on it. As I believe ,all movements on the world are related to one or some reference points.
For those who like to design a system , the best way is to find a reference point (level) and find how far price can move from that point?

Subscribe

Hey Aebab

Very interesting - just two questions. What constitutes a break? A daily close above/below or a pierce etc?
What about SL? Do you use one? If so where do you place it.

Thanks

Can't post pictures at the moment - but looking at AU - are you going/already long given price has come from the 23.6, broken the 50 and is currently retesting it? Thanks.

Subscribe, very interesting.