Predicting future FX support and resistance levels using mathematics

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Old Dec 17, 2017, 7:39pm   #1
gka
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Predicting future FX support and resistance levels using mathematics

Hi Everyone, My name is Graham and I am a mathematician here in Canada.

There are lots of different technical analysis methods to determine future support and resistance levels. They can be subjective and depend upon experience. I have been wondering whether support and resistance levels can be determined mathematically and now have a working algorithm I call the Volatility Response Model (VRM).

The VRM calculates future support and resistance levels either one day ahead or one week ahead, together with short and long term trend channels. These predictions are not extrapolations from the past. I attach a white paper describing the algorithm.

I am looking for FX traders for feedback, discussions and opinions on the VRM predictions. To this end I will post predictions in this thread as markets progress.

Here is the first set of predictions for GBPUSD in chart format starting 5 pm New York time tonight. The second attached paper describes the format of these predictions on the chart. They are essentially 24 weekly levels and 24 daily levels. The latter will last until 5 pm New York time tomorrow night. Tomorrow night after the close in New York I will post the GBPUSD market price action and the VRM levels on the same chart.
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File Type: pdf charts-01.pdf (187.5 KB, 133 views)
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Old Dec 17, 2017, 7:52pm   #2
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a simple straight line works for me and TRO ? .......

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Old Dec 17, 2017, 8:09pm   #3
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Originally Posted by gka View Post
Hi Everyone, My name is Graham and I am a mathematician here in Canada.

There are lots of different technical analysis methods to determine future support and resistance levels. They can be subjective and depend upon experience. I have been wondering whether support and resistance levels can be determined mathematically and now have a working algorithm I call the Volatility Response Model (VRM).

The VRM calculates future support and resistance levels either one day ahead or one week ahead, together with short and long term trend channels. These predictions are not extrapolations from the past. I attach a white paper describing the algorithm.

I am looking for FX traders for feedback, discussions and opinions on the VRM predictions. To this end I will post predictions in this thread as markets progress.

Here is the first set of predictions for GBPUSD in chart format starting 5 pm New York time tonight. The second attached paper describes the format of these predictions on the chart. They are essentially 24 weekly levels and 24 daily levels. The latter will last until 5 pm New York time tomorrow night. Tomorrow night after the close in New York I will post the GBPUSD market price action and the VRM levels on the same chart.
Hi Graham, looks very interesting.

Could this methodology be applied to Stock indices? Have you done any work in that area?
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Old Dec 17, 2017, 8:14pm   #4
gka
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a simple straight line works for me and TRO ? .......

N
Hi... I am not familiar with the abbreviation TRO...
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Old Dec 17, 2017, 8:15pm   #5
gka
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Hi Graham, looks very interesting.

Could this methodology be applied to Stock indices? Have you done any work in that area?
Yes I believe that it can be applied to stock indices. Which stock index are you interested in?
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Old Dec 17, 2017, 8:21pm   #6
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Hi... I am not familiar with the abbreviation TRO...
sorry Graham - the rumpled one ......check him out here and on youtube

known him for years ..........

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Old Dec 17, 2017, 8:22pm   #7
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Yes I believe that it can be applied to stock indices. Which stock index are you interested in?
Primarily the US, Dow, S+P, Nasdaq.

I continually monitor the order of strength and weakness both in rising and falling moves.
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Old Dec 17, 2017, 8:26pm   #8
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Primarily the US, Dow, S+P, Nasdaq.

I continually monitor the order of strength and weakness both in rising and falling moves.
I can try out the algorithm on these indices and get back to you.
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