Trading or investing in stocks & commodities is a high risk activity. Any action you choose to take in the markets is totally your own responsibility. You are recommended to make appropriate inquiries and seek appropriate advise before sending money, incurring any expenses, acting on recommendations or entering into any commitment in relation to any reference published here. Past performance is not necessarily indicative of future results.
Murrey Math is a complex set of support and resistance levels that act more or less the same as pivot points but also they provide some insights whether the current trend should continue or it should reverse. The Murrey math concept has been developed by T. Henning Murrey in 1995 and has been described in great details in his book “The Murrey Math Trading System For All Traded Markets.”
First of all, we have to emphasize one of the main principles of Murrey math is that the markets behave similarly. So, the main assumption is that the smart money behaves the same in all markets and hence why different markets have similar characteristics.
The Murrey math is based on observations that were made by WD Gann in the first half of the 20th century. The Murrey math was inspired by the Gann theory and he created a system of geometry that can be used to describe market price movements in time. That geometry facilitates the use of Gann trading techniques.
The Murrey math geometry is very elegant in its simplicity which makes the Murrey math trading lines strategy a perfect automatical fractal trading system. The core element of the Murrey trading is that the price movement of any market will retrace in multiples of 1/8, 2/8 all the way up to 8/8. Since prices move in 1/8’s. Murrey math divides prices into 1/8 intervals.
The Murrey Math Trading Lines Strategy is the ultimate support and resistance system because unlike the simple support and resistance levels the Murrey lines are mathematically driven and possess a greater influence on how the price reacts to each of these levels.
Murray Math Study
The Sierra Charts trading platform study simplified version of the Murrey Math fractal lines of eight, can be applied to any time frame. It may be used with tick, range or minute charts. For the swing to long term trader/investor, applying it to hourly to weekly charts may give one structure of support and resistance in managing the trade. It may be used with Forex, stocks, ETF’s and futures alike. Learning to use the study is a combination of understanding price action and developing a strategy that fits your trading style.
The video tutorials below is a compilation of observance and trading the MML levels as they function on an intraday basis in the futures market. For more information on applying it to ETF’s please visit the ETF strategy and charts section.
Sierra Charts MML Study (place in your data folder and open by accessing the analysis to add to your current template)
Infinity Futures Webinar
MML Trading Strategy Videos (Ed Carp)
Murrey/Murray Math Links