Murrey Advisor by MoStAsHaR15

MURREY ADVISOR V2.3 MoStAsHaR15 2010

Timeframe: 4 Hrs
Pairs: EURUSD, GBPUSD, USDJPY, USDCAD, AUDUSD, NZDUSD, and EURGBP.

I have developed this indicator based on my observations. It is based on the principles of Support and Resistance using Murrey Lines and Trend strength & direction using ADX.
The indicator will plot Murrey lines. It will highlight areas from -2/8P to 0/8 AND 8/8 to +2/8P with a red color to indicate that these two areas follow additional rule. The rule is that only LONG positions will be allowed below 0/8 and only SHORT positions will be allowed above 8/8.
The indicator can automatically recognize the current Murrey support and resistance and will show how many pips still there to reach the levels.

BUY ENTRY
The indicator looks for the following:

1. EMA(5,close) > EMA(6,open) by 5 points at least AND close of last candle Close[1] is no more than 25 pips above EMA(5,close).
2. Current candle open (Open[0]) > support by 3 points at least.
3. Main ADX > 21 and increasing while ADX(+) > ADX(-) by 3 points at least.
4. High of both current and last candles (H[0,1]) < resistance by 10 points at least.
5. Price should be below 8/8 Murrey level

SELL ENTRY
The indicator looks for the following:

1. EMA(5,close) < EMA(6,open) by 5 points at least AND close of last candle Close[1] is no more than 25 pips below EMA(5,close).
2. Current candle open (Open[0]) > resistance by 3 points at least.
3. Main ADX > 21 and increasing while ADX(-) > ADX(+) by 3 points at least.
4. Low of both current and last candles (L[0,1]) < resistance by 10 points at least.
5. Price should be above 0/8 Murrey level

The indicator shows status of each condition on real-time. Once conditions achieved, recommendations will be shown as “Go Long” or “Go Short” while “Hold!” is shown if any of the conditions is not satisfied. The indicator gives an alert once a signal is generated.

Once you get in LONG position, then your TP = next resistance (usually from 30 to 60 points based on Murrey span) and SL = -30 points.

RESULTS
So far, I am getting around 75% success rate and overall it is making good money based on manual trading on both Demo and Real accounts. I have been developing this strategy since 2005 and it evolved from different indicators and timeframes until it is in this form in this version (v2.3).

MURREY ADVISOR EA V1.0
We have produced the 1st version of EA that uses this strategy. Highlights are as follows:

1. You have to attach both EA V1.0 and Murrey Advisor V2.3 to the same chart as the EA imports the data through the chart.
2. EA will trade one position per pair max as long as there is enough money.
3. Lot size is 0.1 and can be changed (external variable).
4. Take Profit (TP) will be next Murrey Support/Resistance as per strategy.
5. Stop Loss (SL) will be -30 points and can be changed (external variable).
6. Trailing Stop (TS) is 15 and can be turned off if set to 0 (external variable).
7. Open positions will be closed automatically either by: (i) TP, (ii) SL, (iii) TS, (iv) if close of last candle close[1] is less than EMA(6,o) by 15 points as it is likely for the pair to go in reverse.
8. Murrey Advisor v1.0 can support only 4-digit brokers as of now. Work in progress to support 5-digit brokers as well.

ATTACHMENTS:
Attached is the latest version v2.3. You need to pick up the right version for you based on your broker digits either 4 or 5. EA v1.0 can only support 4 digit brokers as of now.

Below is a snapshot of the indicator showing SELL entry for EURGBP:

http://img214.imageshack.us/img214/5652/eurgbpsell.gif

Very interesting indicator. Do you wait for the h4 candle to close for entry or you enter as soon as there is a signal?

What I have been doing is that I get in immediately whenever there is a signal even if the candle did not close with exception after weekend. I usually wait at least for the close of one new candle to confirm the direction during the opening of Asian market after the weekend.

Please post the remaining required indicators. Thanks

Il try it for next few weeks now. Thanks dude

There is no other indicators required. You just install the MQL4 file and insert the template. You should get it setup.

Thanks buddy

subscribed. Would want to do a test of your indi and respond.

Peace!

good work... thanks

Thanks for dropping by and waiting for your results.

So it cant be used on 15 min or 30 min timeframes ?

The example violates the above rules, since you're going short at the 4/8 pivot, instead of MM levels above 8/8.

Please advise.

Rob

Excellent work, mostashar15.

I have been playing around with Murrey on the D1 for a while recently and it is interesting how price tends to respect these lines quite a lot. This is definitely a good candidate for an EA. I wonder if Sir Steve Hopwood would be interested...

I would like to add that it would also be useful to have Steve's Trade Manager EA manage the trades. When I was trying to some trading off the D1 Murreys, I was using this EA to manage the trade. I found the following features useful, and you might want to try them as this may improve the profitability in the case where the price reverses without quite touching the TP line:

 

1. Instant trailing stop: As soon as the trade starts moving in the direction of the trade, this feature the starts trailing the SL. So if your SL is set at 30, then it will trail at 30 pips.
2. Tightening SL: Once the trailing SL reaches certain levels, then the Trade Manager EA tightens the trailing stop. The two points are at 50% of the TP level and 80% of the TP level. So if you have a trailing 30 pip stop, then you could have this tightened to 15 pips when the trade reaches 50% of the TP and then to 7 pips when the trade reaches 80% of the TP level. In other words as you get closer to the TP, then you lock in progressively more profit.

I hope this is a help to you. Thank you very much for sharing.

Invisible

I don't recommend other time frames than 4 hrs.

@ ChicagoRob

The way I understand it is between 0 and 8 levels, then you can go either long or short. If price is above 8/8 then you can only go short, and below 0/8 you can only go long.

@ mostashar15

Sometimes Murreys will suddenly change. Does your indicator automatically do that, or do we need to refresh the chart by changing to another TF and back again to see that?

No it does not.

8/8 to +2/8P => go for SELL signals only.
0/8 to 8/8 => go for both BUY and SELL signals.
-2/8 to 0/8 => go for BUY signals only.

I hope this clarifies it.

Yes, your understanding is correct.

Regarding sudden change of Murrey Levels, if you use 4hr time frame as proposed by this strategy then the change will not happen before days and sometimes weeks.Therefore, what I suggest is that to refresh the chart everyday just in case.

Sorry Invisible, I overlooked your post.

I like your suggestions and sure will be considered during EA developments.

I appreciate the time.

Yes, it does. Sorry for the confusion, since there is another MM system floating around that advises to only initiate trades at the extreme levels.
The analogy is price equates to a rubber band: the farther away it gets from the mean, the higher the force to return to the mean.

Rob

The Murray and recommendations portion are not showing up on my platform FXDD. Any suggestions? Thanks