The Murrey Math Lines Indicator spots the horizontal support/resistance levels of the price on MT4 charts. It works in a similar fashion to Fibonacci retracements and pivot point indicators.
This indicator has been developed by T.Henning Murrey, who wanted to build a MetaTrader tool that will assist day traders in anticipating solid S/R levels on the chart.
Murrey Math Lines Indicator consists of nine equidistant levels, parallelly plotted to show the possible price-reversal zones.
Besides long-term S/R, Murrey Math also determines daily mid-levels, which plays a crucial role in deciding short-term entry and exit levels.
The nature of price-actions near the Murrey Math Lines varies depending on market sentiments and price volatilities.
Most of the time, the price will either respect the horizontal lines as support/resistance or treat them as breakout levels. Sometimes, the market turns sidelined after entering the ultimate support/resistance zone.
According to Murrey Math Line’s strategy, the ultimate S/R zones are ideal for entering fresh orders. For instance, you may decide to go long when the price starts heading upwards following a rejection from the support level.
Besides buy/sell levels, you can also use the Murrey Math Lines for determining Stop Loss and Take Profit zones.
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- The price-action plots a bullish candlestick pattern right above the ultimate support zone
- The signal candle closes above support or breaks a resistance
- Exit long when the price gets rejected at the ultimate resistance level
- The price heads south after getting rejected from the ultimate resistance zone
- A bearish candlestick needs to be closed below the resistance or should break the current support successfully
- Exit short when the price fails to break the ultimate support zone