Pure & simple Abonacci system

First of all, all honor and respect goes to "Bobi" of Abonacci fame, he is in my eyes a genius and a legend and much (if not most) of this system is derived from his research and observations. I won't discuss it in detail here, but you can read his work here.

Second, hats off to ubenders - he seemed to put 2 and 2 together and get a 4 (which is quite a feat in this industry). For those of us who have always followed the Abonacci way of trading, he may well have discovered a missing link.

So there are some rules (as it seems most threads require them).
1. Respect others

That’s it – but I might add more if necessary.

So onto the system. Let me start by saying that this is a work in progress but based on a proven and profitable system. One of the reasons for threading is to thin it out. But that doesn’t mean improving by throwing every metric you can imagine into it – the beauty of this system is the simplicity. It will be more complete with the observations we are looking for.

Chart <br> We only need two indicators
1.Abonacci indicator
2. Murray Math (MM) Indicator

Nothing else is needed. real. No, really.

Chart setup (this is the most complicated bit, but once done, everything is set)
1. Open the chart (timeframe doesn't matter but I would choose 1 hour or 4 hours)
2. Apply the template below.
3. Open the Murrey Math indicator and change it to the following. "P" to "256", "MMPeriod" to "1440"

4. Open the Abonacci template

For currency pairs with price format x.xxxxx 'length' 122 (1 hour TF trade) or 244 (4 hour TF trade) or 488 (daily TF trade)

For currency pairs with price format xx.xxxx or xxx.xxx (usually Japanese Yen pairs), change the "Length" to 156 (30m/1h TF trade) or 312 (4h TF trade) or 625 (Daily TF trade)

5. Copy one of the Murray Math levels (preferably the support/resistance pivot point level (blue)) into the Baseline Box

6. Your abonacci 100% level should now match the MM level.


trade
Option 1.
Long Trade - The price rises from the 76.4% level to above 0%/100% to enter the above mentioned stage. Enter the long position when price breaks above 23.6%. The take profit level is 76.4%.
Short Trade - The price falls from the 23.6% level below 0%/100% entering the following stages. Go short when price breaks 76.4%. The take profit level is 23.6%.

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

You see, our goal is to get a piece of the action as price moves between different levels.

Stop Loss <br> I recommend either 10 pips below (long) or above (short) the 100% level
or
Close and reverse your positions at the 76.4% level (long), 23.6% level (short) in the following stages.

As with all systems, there are losses. Therefore, the importance of finding a money management method that suits your trading style and risk tolerance cannot be overstated.

Example


Option 2
coming soon

Paired size and baseline (bold numbers are 1:1 fits. i.e. 1 stage of abonacci fits the exact distance between 2 Murray 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

Gold/USD

Size- 3125 , 6250

Baseline - 1500.00

Another approach worth exploring is to use a larger size template for calculations (no matter how big, as long as it meets MM level) and then build multiple entries (stock millipedes) for swing trading.

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