The Murrey Math MT4 indicator displays mathematical derived support and resistance levels that can

be very predictive and they are a wonderful place to start when you’re new to trading and still learning
how to properly draw your support and resistance levels. The Murrey Math indicator was developed by
T. Henning Murrey in 1998 and it’s derived from the Gann studies.
The Murrey Math MT4 Indicator is a pivot line indicator good for use for all price action traders because
it can accurately analyze different price action zones on the charts. This indicator can be used
independently or with other indicator that are based on technical analysis, such as the Fibonacci levels,
which are a great tool to be used in confluence with the Murrey Math lines.

The preferred settings for the Murrey Math MT4 indicator are the default settings. The indicator has
nine main components or variables plus 4 extra levels that express extreme overbought or oversold
conditions and each of them will tell you a different story about the price action as follow:

• [+2/8]P – Extreme Overshoot conditions, can reverse anytime

• [+1/8]P – Overshoot conditions
• [8/8]P – Ultimate resistance, extremely overbought conditions
• [7/8]P – Weak level, place to stop and reverse
• [6/8]P – Strong pivot reverse
• [5/8]P – Top of trading range
• [4/8]P – Major support/resistance pivotal point
• [3/8]P – Bottom of trading range
• [2/8]P – Strong, Pivot, reverse
• [1/8]P – Weak, place to stop and reverse
• [0/8]P – Hardest line to fall below, oversold conditions
• [-1/8]P – Oversold conditions
• [-2/8]P – Extreme oversold conditions, can reverse anytime
•

The first input parameters of the Murrey Math MT4 indicator is the variable P (Periods) which has
assigned a default value of 64 and represents the numbers of bars the indicator will take into
consideration for calculating the Murrey’s lines. The MMPeriod has assigned a default value of 1440
which is a day worth of data (a day has 1440 minutes). Last but not least the SetBack variable has
assigned a value of 0 which means that the Murrey’s lines will not be shifted back in time.

Characteristics of MMLs
Since, according to Gann, prices move in 1/8's, these 1/8's act as points of price support and
resistance as an entity's price changes in time. Given this 1/8 characteristic of price action,
Murrey assigns properties to each of the MML's in an a given octave. These properties are listed here
for convenience.

8/8 th's and 0/8 th's Lines (Ultimate Resistance)

These lines are the hardest to penetrate on the way up, and give the greatest support on the way down.
(Prices may never make it thru these lines).

7/8 th's Line (Weak, Stall and Reverse)

This line is weak. If prices run up too far too fast, and if they stall at this line they will reverse down fast.
If prices do not stall at this line they will move up to the 8/8 th's line.

6/8 th's and 2/8 th's Lines (Pivot, Reverse)

These two lines are second only to the 4/8 th's line in their ability to force prices to reverse. This is true
whether prices are moving up or down.

5/8 th's Line (Top of Trading Range)

The prices of all entities will spend 40% of the time moving between the 5/8 th's and 3/8 th's
lines. If prices move above the 5/8 th's line and stay above it for 10 to 12 days, the entity is said to be
selling at a premium to what one wants to pay for it and prices will tend to stay above this line in the
"premium area". If, however, prices fall below the 5/8 th's line then they will tend to fall further looking
for support at a lower level.

4/8 th's Line (Major Support/Resistance)

This line provides the greatest amount of support and resistance. This line has the greatest
support when prices are above it and the greatest resistance when prices are below it. This price level
is the best level to sell and buy against.

3/8 th's Line (Bottom of Trading Range)

If prices are below this line and moving upwards, this line is difficult to penetrate. If prices
penetrate above this line and stay above this line for 10 to 12 days then prices will stay above
this line and spend 40% of the time moving between this line and the 5/8 th's line.

1/8 th Line (Weak, Stall and Reverse)

This line is weak. If prices run down too far too fast, and if they stall at this line they will reverse up fast.
If prices do not stall at this line they will move down to the 0/8 th's line.

Trading tips:
2 MM strategy in general:

a. Buy on line 1/8-TP in 4 / 8 or Buy at 0 / 8 - TP in 2 / 8

b. Sell 7/8-TP line in 4 / 8 or Sell on 8 / 8 - TP in 6 / 8

A. Main approaches:

1. Sell in 7 / 8, TP in 4 / 8

2. Buy at 1 / 8, TP in 4 / 8

The main approach in the majority of these are common.

Factors that increase the success rate above the main approaches:

1. Previous movements to move from 5 / 8 or more

2. Double Pattern / Tripple bottom in 1 / 8 or double top / triple top in 7 / 8

3. Form a higher low prices on 1 / 8 or lower high in 7 / 8

Notes: If you do this alone .. you is enough to make money.

B. Secondary approach

1. Buy at 0 / 8, TP in 2 / 8

2. Sell at 8 / 8, TP at 6 / 8

Bonus for more in depth study : http://dewinforex.com/forex-basics/the-real-look-at-murrey-levels-or-

how-to-simplify-to-earn.html