4 Answers
<p><br>Murrey Math is a complex set of support and resistance levels that act more or less the same as pivot points but also they provide some insights on whether the current trend should continue or it should reverse. We need to emphasize one of the main principles of Murrey math is that the markets behave similarly. So, the main assumption is that smart money behaves the same in all markets and hence why different markets have similar characteristics.</p>
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<p><br>The Murrey math was inspired by the Gann theory and he created a system of geometry that can be used to describe market price movements in time. That geometry facilitates the use of Gann trading techniques. The Murrey math geometry is very elegant in its simplicity which makes the Murrey math trading lines strategy a perfect automatically fractal trading system. The core element of the Murrey trading is that the price movement of any market will retrace in multiples of 1/8, 2/8 all the way up to 8/8. Since prices move in 1/8’s. Murrey math divides prices into 1/8 intervals.</p>
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<p><br>The Murrey Math lines consist of 8 “pivot points” with each line having a different meaning to the price action. Essentially what the Murrey math trading lines strategy does is to divide the price into 8 important levels with the 8/8, 4/8 and the 0/8 levels being the most significant pivots.</p>
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<p><br>The Murrey Math Trading Lines Strategy is the ultimate support and resistance system because unlike the simple support and resistance levels the Murrey lines are mathematically driven and possess a greater influence on how the price reacts to each of these levels. The same Murrey trading principles outlined throughout this article can be applied to any instrument because according to Murrey “all markets behave in the same manner akin to a herd,” and can be used on any time frame so that it can fit your trading style.</p>
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