Murrey math lines (MML) is a relatively new trading indicator showing supports and resistances and helps in finding trends and trend changes.
The indicator was developed by T. Henning Murrey and has some similarity to Fibonacci retracement and pivot points.
MML was created based on the observations of Gann studies and is a simple way to implement Gann.
- Line 8 / 8&0 / 8 (Ultimate Ultimate Support and Resistance)
This line can be considered as Support / Resistance strongest.
- Line 7 / 8 (Weak, Place to Stop and Reverse)
Weak lines. If a sudden price moves too fast and too far and then stop in at around this line, it means prices will soon turn around. If prices do not stop near this line, then the price will continue moving to the line 8 / 8.
- Line 1 / 8 (Weak, Place, to the Stop and Reverse)
Weak lines. If a sudden price moves too fast and too far and then stop in at around this line, it means prices will soon turn around. If prices do not stop near this line, then the price will continue moving to the line 0 / 8
- Line 2 / 8 and 6 / 8 (Pivot, Reverse)
2 this line to swing a trade with the line 4 / 8 if the price moves between 2/8-4/8 or 6/8-4/8 line.
- Line 5 / 8 (Top of Trading Range)
Price spent 40% of all movements in between the lines 5 / 8 and 3 / 8. If prices move or stop at about the line 5 / 8 for 10-12 days, can be interpreted as a zone to try to take positions Sell (there are some people who do this). But if the price is above the tendency of 5 / 8, it means that prices will continue to the next resistance level.
- Line 3 / 8 (Bottom of Trading Range)
If the price is below this line and in the condition of the uptrend, it means the price will be very difficult to penetrate to this level. If the price of penetrating to this level in the uptrend and settled conditions above that level for 10-12 days, it means prices will move between 3 / 8 5 / 8 over 40% of the time movement.
- Line 4 / 8 (Major Support / Resistance Line)
Is a major line of support/resistance. It’s good for entry-level SELL or BUY.