MM Lines (Murrey Maths Lines) Indicator

[chankl78]

http://www.filefactory.com/file/b1c068c/n/Murrey_Math_Line_X_eng.zip 
Or
http://www.4shared.com/account/file/igDPq5Yp/Murrey_Math_Line_X_eng.html

 

Some notes on this indicators.

Upper Magenta Line - Ultimate Resistance

These lines are the hardest to penetrate on the way up, and provide the greatest resistance. (Prices sometimes never make it through these lines).

 

Dark Brown - 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 Upper Resistance Line.

 

 

Upper White Line - Pivot, Reverse

This line is second only to the Central Yellow line in its ability to force prices to reverse. This is true whether prices are moving up or down.

 

 

Upper Green Line - Top of Trading Range (not displayed but available in EL function)

The prices of all entities will spend 40% of the time moving between the Upper Green line and Lower Green line. If prices move above the Upper Green line and stay above it for 10 to 12 bars, 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 Upper Green line then they will tend to fall further looking for support at a lower level.

 

 

Central Yellow Line - Major Support/Resistance Point Point

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.

 

 

Lower Green Line - Bottom of Trading Range (not displayed but available in EL function)

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 bars then prices will stay above this line and spend 40% of the time moving between this line and the Upper Green line.

 

 

Lower White Lines - Pivot, Reverse

This line is second only to the Central Yellow line in its ability to force prices to reverse. This is true whether prices are moving up or down.

 

 

Lower Brown 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 Support Line.

 

 

Lower Cyan Line - Ultimate Support

These lines are the hardest to penetrate on the way down and provide the greatest support. (Prices sometimes never make it through these lines).

 

http://i49.tinypic.com/2mfgaxf.jpg

 

Characteristics of MMLs

 

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.

 

Smile

Chankl78

Edited May 19, 2010 by chankl78

[Gyverd]

How abour the entry rules Bro ? Where we must put our Pending Order, StopLoss & TakeProfit ? Thanks before Bro :-bd

[chankl78]

Below is what I have copied from another site.

 

How I use Murrey Math

When I first started working with Murrey Math, I treated all the lines as simple pivots - support/resistance areas which could be used to confirm buy/sell signals.

 

I realised that some levels are often repeated across different timeframes, which I thought simply made them stronger pivots. Then over time I got to understand a little more about how the Murrey works and here are a few tips from what I have learned so far.

 

Firstly a bit about the individual lines themselves:

Firstly there's the obvious - when the market is over-extended in either direction (i.e at the overshoot or extreme overshoot lines) there's a good chance of a move back the other way, especially if there is confirmation from other indicators.

 

Then there's the one we've mentioned - the two Murrey strategies:

Buy at 1/8 close at 4/8 or Buy at 0/8 close at 2/8

Sell at 7/8 close at 4/8 or Sell at 8/8 close at 6/8

 

I haven't tested these too much but from what I can tell a little discretion is involved - the strike rate is not high enough to be purely mechanical about it. Candlestick patterns or confirming pivots might be a good "filter".

 

See http://www.graemenash.co.uk/forex/MM.doc for more info on the strategies.

 

The "Trading Range" lines might seem a bit confusing at first, given that the market spends most of its time outside the trading range, but there's more to it than that - these lines are actually very important in determining the state or sentiment of the market. Basically, when the market is between the lines, it is in an undecided state (i.e a trading range).

 

If it is above the 5/8 line then the market can be considered bullish, likewise below 3/8 we are in a bearish market.

Hence 5/8 is a great support level for re-entering a long trend and 3/8 for short.

 

A break of these lines can be very important.

For example- If the market has been above 5/8 for a period of time but breaks below, that is a sign of bullishness fading. A drop to 4/8 almost always follows, and at that point 5/8 becomes significant resistance, because a break back above it would represent a re-establishing of the bullish scenario which had just previously failed.

 

If the market does indeed re-test 5/8 and fail, that confirms that the bullish sentiment has pretty much gone and an attempt at a move to 3/8 can be expected. If the market then breaks below 3/8, it has definitively turned bearish - and 3/8 then becomes strong resistance as a break back above would represent another change in sentiment, this time back to indecision.

 

Note that sometimes the re-test doesn’t occur and the market will break one trading range

line and head straight for the other!

 

People often ask what timeframe to use Murrey on - but I use it on almost all of them. I have 1m/5m/30m/1h/4h charts on-screen with murrey lines. When you understand more about the market context murrey can give you, it's useful to have them all up as it can give good clues about where the market is likely to head.

 

A good example would be a trade I did a while ago which used nothing but murrey lines to get me in. Now I'm doing this from memory so it may not be totally accurate, but will still give a good idea of what I'm on about (I hope!) :)

 

Cable had bounced strongly off the 0/8 line on the 4h chart, a move targeting 2/8 (according to the strategy above), which was at 1.8250.

 

When it started approaching that level, I looked at the 1h chart, which had broken above it's 3/8 line, suggesting a move to 4/8 was coming. 4/8 was also 1.8250. When it got to there, I dropped down to the 5min chart to "zoom in" on the action a bit more, and saw that cable had broken above 3/8, retested and bounced off, targeting at least 5/8, which was also 1.8250 - it then broke this and went to 6/8 at 1.8265

 

By this time the upward move was running out of steam - the 4h and 1h targets had been hit, and the 5min had made a sizeable up-move and overshot the target by one level, suggesting it may need to pause and retrace a little. When the price hit that 6/8 at 1.8265 I dropped down to the 1min chart to try to pick the exact entry for the reversal, and I saw that the 7/8 (stall and reverse) line was at 1.8272. In the context of what the other timeframes were saying, it seemed highly likely that if the market hit this level it would bounce straight away.

 

The market went up to 1.8272 exactly then bounced off, giving me a +50 trade!

 

So that's how I use murrey math - to give context on what the market is doing and where it might go. I think it's important to have all the timeframes up as once you get used to it they give great info, and sometimes when they all say the same thing you don't need much else!

 

** As I write this I've just closed a cable short (from 1.7792 - 0945am UK time, closed 1.7777 at 0957), which was signalled well enough by divergences, price channels, moving averages etc.

 

But a great confirmation for me was the fact that when I entered the trade, the 5min chart had risen up to test the 3/8 line at 1.7792 - as I said earlier if market is below this it represents strong resistance because it means a change in sentiment. Simultaneously, the 1min chart was on +1/8 (extreme overshoot), which meant there was not much room above and a bounce off was likely.

 

For the exit there were again good divergence/boll/price channel/pivot signals and the confirmation for me was the 1min chart sitting just above the 5/8 line at 1.7769 - strong support because it would have meant a change from bullish to undecided sentiment. I took the exit there because in my view the market was short-term bullish, having risen 80 points

 

in an hour, so that level was likely to hold as support.

 

** update again – I then reversed to long (at 1.7776 – 10am) with the target for the trade at 1.8222, which has just been hit, because:

 

The 1min bullish scenario was intact after that 5/8 line held

If price broke above the 5min 3/8 the target would be 4/8 at 1.8222 Right down at the bottom (1.7723) cable had bounced off 1/8 a move which targets… 4/8!

 

http://i48.tinypic.com/5bqt77.jpg

 

Smile

Chankl78

Edited May 19, 2010 by chankl78

[chankl78]

By the way, this is the first time I saw this from another site. Thought it is good.

 

So that's why I do a search in Indo, cannot see this indicator, so I post it.

 

I feel it is quite good as it tell you everything.... For that timeframe.

Please feel free to come out with your system from this indicator.

 

Smile

Chankl78

[et_phonehome_2]

Plse be aware, the lines do shift as the market moves...

[chankl78]

Saw that just now. But if you have a TP or breakeven pips set, generally speaking, it is quite safe.

 

Smile

Chankl78

[samk090905]

hi c;

 

will it work from 1 timeframe to the next? meaning if im on m15 and then switch to h1 and h4 will it automatically adjust or can i only use it in one timeframe?

[samk090905]

here is the site:

 

http://www.foretrade.com/MM_description.htm

Edited May 20, 2010 by chankl78

[chankl78]

hi c;

 

will it work from 1 timeframe to the next? meaning if im on m15 and then switch to h1 and h4 will it automatically adjust or can i only use it in one timeframe?

 

Yes. It will auto adjust to any timeframes.

 

Smile

Chankl78

[hoanghuy]

I'm so surprised to know that MMth Lines is also a work of Murrey to investigate Gann's work :)

[chankl78]

I'm so surprised to know that MMth Lines is also a work of Murrey to investigate Gann's work :)

 

Yup... to me quite good indicator for entry....

 

Smile

Chankl78

[Gyverd]

How about for Exit ?

[chankl78]

How about for Exit ?

 

I think you can try exit at the next line or 2 lines away.

 

Just watch out between 3/8 to 5/8. It killed if we really buy at 5/8, sell at 3/8.

 

I am still testing it..

 

Smile

Chankl78

[fonsov]

thanks, looks interesting.

[hoanghuy]

Yup... to me quite good indicator for entry....

 

Smile

Chankl78

 

I have been using this great indicator without knowing it's an indirect result of Gann's work until reading the description link posted on this topic.

This increases my belief on Gann's method. (some say that he's a scam artist lol)

Edited May 29, 2010 by hoanghuy

[chankl78]

I have been using this great indicator without knowing it's an indirect result of Gann's work until reading the description link posted on this topic.

This increases my belief on Gann's method. (some say that he's a scam artist lol)

 

Hmmm...

 

Wahaha... It is so easy to solve your problem on scam artist.. Just make everyone believe it is good.. wahaha.. By making this indicator well known by showing actual proofs (Results)...

Wahahah...

 

Smile

Chankl78

[⭐ goffredomameli]

please reupload...links are dead

thank's in advance

[Sixer]

Check this MT4-solution:

 

https://www.mql5.com/en/code/8570

 

Sixer