Thomas Henning Murrey is one of the world’s most innovative mathematical geniuses. Gann was the man: 1920 to 1954. Now Murrey is the man: 1992- 2007 forward. You don’t have to know the math, just follow his rules to trade for profits against small risk. Murrey “invented” The MurreyMath™ Program in 1993 to make trading easy & predictable for anyone.
T. H. Murrey from Nashville Tennessee was born in 1942. In 1993 Murrey worked on theories of random thinking, importantly by NOT studying the market. From this he wrote his trading book and then in 1995 Murrey “rediscovered” what Gann hinted at in his book, the six clues. Murrey translated the algorithms of a Fractal inside a Cube set to the Base Ten to exact Fibonacci Ratios set to the scale of Music.
Silver Daily Chart - January to June 2011
The main assumption in Murrey Math is that all markets behave in the same manner (i.e. All markets are traded by a mob and hence have similar characteristics.). The Murrey Math trading system is primarily based upon the observations made by W.D. Gann in the first half of the 20′th century.
While Gann was purported to be a brilliant trader in any market his techniques have been regarded as complex and difficult to implement. The great contribution of Murrey Math (T. H. Murrey) was the creation of a system of geometry that can be used to describe market price movements in time. This geometry facilitates the use of Gann’s trading techniques.
The Murrey Math trading system is composed of two main components; the geometry used to gauge the price movements of a given market and a set of rules that are based upon Gann and Japanese candlestick formations.
The Murrey Math system is not a crystal ball, but when implemented properly, it can have predictive capabilities.
Because the Murrey Math rules are tied to the Murrey Math geometry, a trader can expect certain predefined behaviors in price movement. By recognizing these behaviors, a trader has greatly improved odds of being on the correct side of a trade.
The overriding principle of the Murrey Math trading system is to recognize the trend of a market, trade with the trend, and exit the trade quickly with a profit (since trends are fleeting). In short, “No one ever went broke taking a profit”.
General Guidance
Murrey Math consist of 13 lines as listed below:
[+2/8] EXTREMELY OVERSHOOT
[+1/8] OVERSHOOT
[ 8/8] Ultimate Resistance – Extremely Overbought
[ 7/8] Weak, Stall and Reverse
[ 6/8] Pivot, Reverse – Major
[ 5/8] Top of Trading Range
[ 4/8] Major Support/Resistance Pivotal Point- Best New BUY/SELL level
[ 3/8] Bottom of Trading Range
[ 2/8] Pivot, Reverse – Major
[ 1/8] Weak, Stall and Reverse
[ 0/8] Ultimate Support – Extremely Oversold
[-1/8] OVERSHOOT
[-2/8] EXTREMELY OVERSHOOT
Metatrader 4 Indicators
- Murrey Math indicator for MT4 locked to one time frame.
You may change your chart time frame, the lines will keep the time frame as your defined in the indicator. Download it HERE - Murrey Math indicator for MT4 Multi time frame (MTF)
The murray Math will adjust the calculation of lines as you change the time frame of your chart. Download it HERE
Save it to the folder called /experts/indicators and re-start the platform.
Visit our page How to install MT4 custom indicators for more details.
You can download Metatrader 4 (MT4) from Metaquotes.
Murrey Math’s lines interpretation:
- Line 8/8 and 0/8 (Ultimate Support and Ultimate Resistance)
Those lines are the most strong concerning Support and resistance. - Line 7/8 (Weak, Place to Stop and Reverse)
This line is weak. If suddenly the price was going too fast and too far and stops around this line it means the price will reverse down very soon. If the price did not stop near this line this price will continue the movement to the line 8/8. - Line 1/8 (Weak, Place to Stop and Reverse)
This line is weak. If suddenly the price was going too fast and too far and stops around this line it means the price will reverse up very soon. If the price did not stop near this line this price will continue the movement down to the line 0/8. - Line 2/8 and 6/8 (Pivot, Reverse)
Those two lines yield the line 4/8 only to the strength to reverse the price movement. - Line 5/8 (Top of Trading Range)
The price is spending the about 40% of the time on the movement between the lines 5/8 and 3/8. If the price is moving near line 5/8 and stopping near the line during the 10 – 12 days so it means that it is necessary to sell in this “bonus zone” (some people are doing like this) but if the price is keeping the tendency to stay above 5/8 line, so it means that the price will be above. But if the price is dropping below 5/8 line it means that the price will continue falling to the next level of resistance. - Line 3/8 (Bottom of Trading Range)
If the price is below this line and in uptrend it means that it will be very difficult for the price to break this level. If the price broke this line during the uptrend and staying above during the 10- 12 days it means that the price will be above this line during the 40% of its time moving between this line and 5/8 line. - Line 4/8 (Major Support/Resistance Line)
It is the major line concerning support and resistance. This level is the better for the new sell or buy. It is the strong level of support of the price is above 4/8. It is the fine resistance line if the price is below this 4/8 line.
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