How to Use Murrey Math Trading Lines in Trading
If you’re looking for one of the most active trading systems in the world today then look no further than the Murrey Math Trading Lines. One of the main reasons for its popularity is due to its suitability across all time frames, which essential means it can be used by people who aren’t able to be at their desk to trade at all times. Not only that but Murrey Math Trading Lines can also be used across a number of different assets like stocks, commodities and currencies of course. So what is Murrey Math and how is it integrated into the currency markets to produce a workable solution for conquering the FX markets?
What are Murrey Math Trading?
To the unsuspecting eye, Murrey Math Trading Lines are a set of complex equations that work in the background to help avid traders navigate their way round the terrifying, yet exciting financial markets. However, what they really are is something even simpler. They are merely a complex set of support and resistance levels that plot where price could be halt, pivot and follow a new trend. These trading lines were first conceptualised by WD Gann, who you may have heard of and who also came up Gann Theory, which reduces market activity to geometric movements that can be predicted. Murrey Math is similar to Gann theory in that it relies on a perfect fractal trading system. The main feature of this trading indicator is the price movement of pretty much any market has the potential to retrace in multiples of ⅛, 2/8, ⅜ and all the way up to 8/8.
The Murrey Math Trading Indicator lines are made up of 8 points that we call pivot points, and these pivot points have different meanings of price action to them. If we break these lines down we can assign a level of importance to each line indicating how crucial or important a retracement could be.
Conclusion
Another reason why the Murrey Math Trading Lines is so popular is because it is so graphic and easy to plot and see on a candlestick chart, as you can so easily see when candles line up on the these plotted lines that are then the perfect indicator to either buy or sell. Now even though Murrey Math lines have become one of the most popular trading systems in recent times, that doesn’t mean you should rule out performing your own testing before you move into a live trading environment. You should ALWAYS perform a sufficient level of testing and due diligence to the point where you are happy and satisfied with your results.
