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Are support and resistance levels predetermined?

  • #21
  • Sep 26, 2013 6:14am Sep 26, 2013 6:14am
Hi Aelbab

Thank you very much for sharing your strategy, i cant understand how you find the baseline number from your excaples in AUUSD i find another number ....
I have to find the Higher ( if its bullish) or the lower close ( bearish ) of the previous year? and put this number in the indicator field?

Thanks
  • #22
  • Sep 26, 2013 6:21am Sep 26, 2013 6:21am
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  • #23
  • Sep 26, 2013 6:32am Sep 26, 2013 6:32am
Quoting nikleon
Hi Aelbab Thank you very much for sharing your strategy, i cant understand how you find the baseline number from your excaples in AUUSD i find another number .... I have to find the Higher ( if its bullish) or the lower close ( bearish ) of the previous year? and put this number in the indicator field? Thanks
No he said its worked out on the high low close but not given the formula for working it out. Its quite strange seeing this thread as I stumbled across his old thread a few days ago and was reading most of it.
  • #24
  • Sep 26, 2013 7:17am Sep 26, 2013 7:17am
Quoting alibeti
hi mr abonacci 1-where is best level for stop loss? 2-now target aud/usd is 0.9648?(LEVEL 76%) thanks

The template is for long-term trading and is suitable for financial institutions or bankers or those who like to trade for mid or long-term. It is difficult to say what is the stop loss level if you are using only one template . to find the stop loss , you have to use different templates . As I said , the movements of the market is due to different support and resistance levels developed by different rooms (phases).
For instance , how we may know the price (eur/usd) may reverse at 1.3461? later, I will introduce a template that is very useful for day trading and its length is only 103 pips.
Attached Image (click to enlarge)
Click to Enlarge Name: eu-rev-3461.png Size: 20 KB
Learn to walk before you run
  • #25
  • Sep 26, 2013 7:22am Sep 26, 2013 7:22am
Quoting hollowhead
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
Hi
In Abonacci System the concept of break is different that all other systems. Break means passing the level by X pips (depends on the template we are using).
when price passes X pips from the appropriate level by any shape or in any time-frame then we would say it is broken.
For T5_965 21 pips is enough to say its broken.
Learn to walk before you run
  • #26
  • Sep 26, 2013 7:32am Sep 26, 2013 7:32am

Introducing T5_594

Another template that I am going to introduce is called T5_594. I use this template to find reversal areas. Try to focus on the concept then you may change all your ideas about market.

According to T5_594 ,there are two reversal areas .
1- 50%-61.8%

2- 50%-382%

break of each area will drive price more 137 pips.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: T5(594) EUR-USD_2013.png Size: 59 KB
Click to Enlarge Name: T5(594) GBP-USD_2013.png Size: 53 KB
Click to Enlarge Name: T5(594) AUD-USD_2013.png Size: 44 KB
Learn to walk before you run
  • #27
  • Sep 26, 2013 7:43am Sep 26, 2013 7:43am
Quoting aebab
{quote} Hi In Abonacci System the concept of break is different that all other systems. Break means passing the level by X pips (depends on the template we are using). when price passes X pips from the appropriate level by any shape or in any time-frame then we would say it is broken. For T5_965 21 pips is enough to say its broken.
Ah, so, the 965 template shows the mid/long term direction, and you can use other templates to trade the retracements/reversals?
  • #28
  • Sep 26, 2013 8:41am Sep 26, 2013 8:41am
Quoting hollowhead
{quote} Ah, so, the 965 template shows the mid/long term direction, and you can use other templates to trade the retracements/reversals?

If we want to trade only by using templates , yes . We have to have a long term view of the market and take decision depending upon other short and mid term templates.
Learn to walk before you run
  • #29
  • Sep 26, 2013 8:48am Sep 26, 2013 8:48am
For your experience , I am posting T5_594 template for EUR/USD-2012 . Now you may realize better why in some special areas price is reversed and make retracement.
Attached Image (click to enlarge)
Click to Enlarge Name: T5(594) EUR-USD_2012.png Size: 48 KB
Learn to walk before you run
  • #30
  • Sep 26, 2013 9:13am Sep 26, 2013 9:13am
Now , you can see why I posted in another thread why that is not an appropriate time to go short and we can expect EUR-USD to get bullish to reach 1.3640-47.
to know why , just have a look at T5_594 again and know why TRADERS,BANKERS,... still are in bullish taste. What we can understand is that from beginning of the year , traders were determined to go bullish when they go beyond 1.3484 that is Saturation level . Their decision were determined even if they do not know why and even if something happens (like war) the trend should be completed to the target. No one can change the trend to stop reaching to the predefined target.
I have heard that many traders have dreams to trade like BANKERS,BIG PLAYERS ,.... but in next posts I will show you how they make big mistakes even they do not know that this area is not suitable to go short . But some banks yesterday announced they they went short at 1.3515 for EUR/USD and their target is 1.2800. They carried with some fundamental and technical reasons that they go short at 1.3515.
Attached Image (click to enlarge)
Click to Enlarge Name: T5(594) EUR-USD_2013.png Size: 59 KB
Learn to walk before you run
  • #31
  • Sep 26, 2013 9:17am Sep 26, 2013 9:17am
dear boby,

is For T5_594 also 21 pips to say its broken ? thank your for all the sharing
  • #32
  • Sep 26, 2013 9:38am Sep 26, 2013 9:38am
Quoting aebab
For your experience , I am posting T5_594 template for EUR/USD-2012 . Now you may realize better why in some special areas price is reversed and make retracement. {image}

Hi bobi.. I see the reversal levels you have boxed on the chart however price never actually reaches these fibs.. is there any specific rules why this would reverse at a point which isn't a fib level?

I see fibs should not break a certain level but the calculator you had was also good for 'to the pip' entry..

thanks
  • #33
  • Sep 26, 2013 9:51am Sep 26, 2013 9:51am
Quoting na_r2000
dear boby, is For T5_594 also 21 pips to say its broken ? thank your for all the sharing

10 pips is enough to be said broken.
Learn to walk before you run
  • #34
  • Sep 26, 2013 9:55am Sep 26, 2013 9:55am
Quoting jaylovin
{quote} Hi bobi.. I see the reversal levels you have boxed on the chart however price never actually reaches these fibs.. is there any specific rules why this would reverse at a point which isn't a fib level? I see fibs should not break a certain level but the calculator you had was also good for 'to the pip' entry.. thanks

Hi
I did not get you exactly what you mean. Can you give me an example ?
Learn to walk before you run
  • #35
  • Sep 26, 2013 10:09am Sep 26, 2013 10:09am
Quoting aebab
{quote} Hi I did not get you exactly what you mean. Can you give me an example ?
sure.. If you take a look at your T5_594 chart... last years low was 1.2042 but the fib level is sitting at 1.20299... how can we determine that 1.2042 will hit and reverse?

Usually I would have waited for 120299... perhaps even the 23,6% below that?


thanks
  • #36
  • Edited 10:34am Sep 26, 2013 10:15am | Edited 10:34am
Quoting jaylovin
{quote} sure.. If you take a look at your T5_594 chart... last years low was 1.2042 but the fib level is sitting at 1.20299... how can we determine that 1.2042 will hit and reverse? Usually I would have waited for 120299... perhaps even the 23,6% below that? thanks
Thank you. Now I got what you mean.
The template says any pis between 50% and 38.2% can be reversal point and if broken , then will hit the target.
It does not say that 50% when broken should meet 38.2% and then reverse.
But when I post some other templates , you will be able to know where exactly the market decides to reverse.
Hope my answer is clear.
Learn to walk before you run
  • #37
  • Sep 26, 2013 10:40am Sep 26, 2013 10:40am
Quoting aebab
{quote} Thanks you. Now I got what you mean. The template says any pis between 50% and 38.2% can be reversal points and if broken , then will hit the target. It does not say that 50% when broken should meet 38.2% and then reverse. But when I post some other templates , you will be able to know where exactly the market decides to reverse. Hope my answer is clear.

extremely clear thank you.. One last question... this month's template 3 rules were violated where a break of 38.2% would reach 76.4 then eventually 100% @ 1.3621... I don't have the template in front of my but I believe 76.4% was at 1.3581 which we also didn't hit... however price broke the 0% phaseline at 1.3494 before hitting 1.3621.. what does this mean exactly for the pair?
  • #38
  • Sep 26, 2013 10:49am Sep 26, 2013 10:49am
Quoting jaylovin
{quote} extremely clear thank you.. One last question... this month's template 3 rules were violated where a break of 38.2% would reach 76.4 then eventually 100% @ 1.3621... I don't have the template in front of my but I believe 76.4% was at 1.3581 which we also didn't hit... however price broke the 0% phaseline at 1.3494 before hitting 1.3621.. what does this mean exactly for the pair?

I see no violation on template 3 . Because we have no rule to say it is not allowed to break phase line 0% before hitting 76.4%. It can be another reason that we have to reach 1.3640 because template 3's target has not been hit so far.
Learn to walk before you run
  • #39
  • Sep 26, 2013 10:51am Sep 26, 2013 10:51am
dear boby,

with this new template .. is template 3 and T4Y still valid? thx much already guidance us for years
  • #40
  • Sep 26, 2013 10:59am Sep 26, 2013 10:59am
is baseline for T5_594 and "T5-965" same? because i have not seen any baseline for T5_594 ... thank you
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