My Murrey Math

This tool may turn out to be a useful addition to your strategy expanding your analytical capabilities. The Murray levels were initially developed based on the Gann theory. In his turn, Gann was considered one of the most prominent market gurus, since he managed to accurately forecast the behavior of the markets and society of his time.

The importance of the Murray levels for practical trading cannot be overestimated. The market price never follows the levels strictly and sometimes pushes off them. At these lines, the price is described by probabilistic future event forecasting properties. This means that when the price approaches any of these levels, an event may happen or not with a certain degree of probability. This probability is exactly the thing the horizontal levels hint at. Each of the levels has its own unique properties and the price is repelled or attracted to the level when approaching it.

The indicator works with any currency pairs. Timeframes - H4 and higher.

Operation Principle

• 8/8 and 0/8 (resistance and support levels) – maximum possible signal power. The price usually reverses after reaching the level 8/8. The moment the level is touched is a good opportunity to close long positions. The level 0/8 is a good time for closing short positions.

• 7/8 and 1/8 (weaker levels) – time for stop and possible reverse. If the level 7/8 is crossed, a sharp downward reversal is possible. Similarly, if the level 1/8 is crossed, a sharp upward reversal may be near. However, that may happen only if the price has moved far enough.

• 6/8 and 2/8 (rotation and reversal levels) – probability of a price movement is quite high at that levels, though it is lower than the one at 4/8.

• 5/8 (trading range peak) – if the price moves within the same price range for 10-12 days, that means it is time to sell. If the price remains above 5/8, then most probably, it will stay there. If it falls, then it will probably fall further down.

• 4/8 (resistance and support levels) – the best levels for buys or sells. Crossing the level 4/8 is a good time to enter a trend. If the price moves higher, 4/8 becomes a strong support level. If the price falls below the level, 4/8 becomes a strong resistance level.

• 3/8 (trading range bottom level) – if the price moves up, it will have difficulties in breaking it.

Parameters

• P - distance between the levels.
• StepBack - time period change step.