Which means that when you trade with these lines, there is a risk inherent in the trade, which is mitigated by the "likelihood" of price moving in the direction suggested by Murrey. The same is also applicable to downtrends the price tends to reverse to retest the 3/8 level before heading down.Ĭredit for this definition : NobleTradingĬaution: Murrey Math lines are a set of support and resistance lines and like any such line are NOT predictive. When the price rises above 5/8 and touches 6/8, it has a tendency to reverse to retest the 5/8 level before heading high. Like Fibonacci retracements, when the price is between two lines, the upper line is considered as resistance and lower line is considered as support. The range between 3/8 and 5/8 is the normal trading range and price tends to consolidate at these levels before falling (3/8 line) or rising (5/8) beyond this trading range. 0/8 is the oversold line and 8/8 the overbought line these are the hardest lines to cross and around 75% of the time, the crossing triggers price reversal. Murrey math lines comprise 9 equidistant lines which run parallel to one another. MML was created based on the observations of Gann studies and is a simple way to implement Gann. Henning Murrey and has some similarity to Fibonacci retracement and pivot points. Murrey math lines (MML) is a relatively new trading indicator showing supports and resistances, and helps in finding trends and trend changes.
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