Just took a trade using the 1 minute settings for Murray Math S/R, and it went for +15 off the -2/8 bounce, not sure if luck and what not but surely an indicator is only as good as the amount of people looking at it / the S/R level. It was weird too because there was no visible 1 minute S/R, next to the -2/8 level but it bounced right off and price took off. Looking forward to testing some more.
Here price broke the +2/8 line which is why you see my sell order appear to come in at 7/8 line, it just recalculated once it broke, but nonetheless another good trade taken from the 2/8th line. I'm a little baffled as to why this actually works, at least for the last 3 hours that I've been monitoring it (on and off since I'm trying to do homework right now). Compared to indicators like Fractal S/R, and TLB which is my go to, this one seems to get the levels spot on. Kind of shocking too because I've been watching it from about 10 pm est to now, which are usually dead hours for the market but have still given me some pretty good trade set ups.
After reading up on Murray's theory, and watching some of the video the only reason I can conclude as to why it works is that price of course always pulls back after a strong movement. The +- 1/8 and +- 2/8 lines represent the "extreme" S/R for each of these strong movements. The video and other websites claim that 95% of the time price will pull back if reaching the +- 2/8th level. While these lines don't vary that much from the lines the TLB indicator gives me it does a good job of getting it right the first time. Previous indicators would draw S/R lines that, although appear to be good areas to buy/sell, merely get broken and then redrawn till they reach the level where price bounces.
