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Murrey Math and Quantum Method

  • #21
  • Feb 24, 2017 10:32am Feb 24, 2017 10:32am
Quoting OAPDave
Just to keep the thread ticking over, 2 charts from today, to be honest not sure what the quantum side of the thread is about {image} {image}
I don't really understand the point of, or how to use the quantum indicator either, it just seems to paint lower lows and higher highs. I just look for an extension to the -/+ 1/8th and 2/8th and then wait for rejection.

This statement comes from most of the sites I have visited regarding Murray Math Lines:

"Now, if price moves beyond the +1/8 or -1/8 lines, then 95% of the time it will reverse when it hits +2/8 or -2/8. Remember, the market was already in overbought (8/8) or
oversold (0/8) mode, so once we push that to the extreme (+2/8 or -2/8) it is extremely unlikely (95% chance) to reverse."

This makes some sense because whenever I trade off the 2/8 lines stochastics show that price has been overbought/oversold for a while. I would like to know the calculations that go into each line however. Do they factor in time versus price movement and thus assign a level of extreme support and resistance? Or is it really as simple as the video says where the market always pulls back in 1/8ths? That seems a little ridiculous to me.
  • #22
  • Feb 24, 2017 10:40am Feb 24, 2017 10:40am
Quoting rnsfrd
{quote} I don't really understand the point of, or how to use the quantum indicator either, it just seems to paint lower lows and higher highs. I just look for an extension to the -/+ 1/8th and 2/8th and then wait for rejection. This statement comes from most of the sites I have visited regarding Murray Math Lines: "Now, if price moves beyond the +1/8 or -1/8 lines, then 95% of the time it will reverse when it hits +2/8 or -2/8. Remember, the market was already in overbought (8/8) or oversold (0/8) mode, so once we push that to the extreme (+2/8...
http://www.forexfactory.com/showthre...52#post4201852Hi if you have not read this you might find it as interesting as I did
  • #23
  • Feb 25, 2017 1:35am Feb 25, 2017 1:35am
Quoting oapdave
just to keep the thread ticking over, 2 charts from today, to be honest not sure what the quantum side of the thread is about {image} {image}
lol me too i dont understand it but it sure sounds cool though

Just my 2 cents! Just place price alerts near overshoot areas and wait for price action. I took a long on Eur/Nzd on the 22nd. Its in plus but I will wait till it goes to 3/8 levels before I adjust my sl.
  • #24
  • Feb 25, 2017 2:42am Feb 25, 2017 2:42am
Quoting hibra68
{quote} lol me too i dont understand it but it sure sounds cool though Just my 2 cents! Just place price alerts near overshoot areas and wait for price action. I took a long on Eur/Nzd on the 22nd. Its in plus but I will wait till it goes to 3/8 levels before I adjust my sl.
Do you use the same Murrey number for all the different timeframes you look at or stay with just 1, Murrey numbers 4 8 16 32 64 128 256 512 1024 here would be 2 extreme setups 1st a 1min scalp trading chart followed by a Daily long term view of how I would look at your pair, let me just add I am self taught so still learning about finding the best way to use MurreyMaths
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  • #25
  • Edited 12:48pm Feb 25, 2017 12:17pm | Edited 12:48pm
Quoting OAPDave
{quote} http://www.forexfactory.com/showthre...52#post4201852Hi if you have not read this you might find it as interesting as I did
Thanks, definitely a good read.

His post and many others claim that these 1/8th levels are how big money (or at least some funds) mark their trading levels, which is a brave claim to make yet these levels do seem to validate those claims since price does respect them very well.

The best way I see this traded is to look to the daily and hourly levels as a guide, and then trade the +-2/8 overshoots on the one minute time frame in the direction of the hour/daily, based on what that post says. The reason this interests me is because it is the first Support and Resistance (to me at least) where the S/R actually means something. Anyone can draw S/R lines, but whether or not price will bounce off them is a whole other game. Even if they bounce off them, if the interest isn't high enough price could break through them right after. The Murray lines actually serve as levels and a guide for price direction.

In addition the only lines that really matter for higher time frames in my opinion are the 0, 4/8, and 8/8 lines the rest are trading ranges. If you use the other lines to gauge direction I think it gives too many signals.
  • #26
  • Feb 25, 2017 1:14pm Feb 25, 2017 1:14pm
Quoting rnsfrd
{quote} Thanks, definitely a good read. His post and many others claim that these 1/8th levels are how big money (or at least some funds) mark their trading levels, which is a brave claim to make yet these levels do seem to validate those claims since price does respect them very well. The best way I see this traded is to look to the daily and hourly levels as a guide, and then trade the +-2/8 overshoots on the one minute time frame in the direction of the hour/daily, based on what that post says. The reason this interests me is because it is the...
Well thought out reply thank you, what I try to do is to try and gauge the possible range for the day and use the levels as targets trailing my stops behind me also at levels, dependant on your Murrey setting the lines (Octaves) will be 15, 31, 62. 122, 244 apart, Murrey says the markets like to make 3/8ths & 5/8ths moves
  • #27
  • Feb 26, 2017 11:24pm Feb 26, 2017 11:24pm
Gonna demo trade these levels this week. Only trading 1 Minute +/- 1/8 and 2/8 levels when extremely overbought/oversold and strong price movement/volatility.

Also trading initial bounces off of the 8/8 0/8 +- 1/8 and 2/8 levels on the hourly chart.

Only trading bounces because after that the probability of trades from these levels decreases significantly.

First trade is off the 1/8 level (it recalculated hence why it looks like it is in between the levels rather than off of it), heavily overbought and strong price movement prior to the trade indicated volatility and interest. Generally if price is slow to reach a point it is slow to bounce off.
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  • #28
  • Feb 27, 2017 12:20am Feb 27, 2017 12:20am
Quoting OAPDave
{quote} Do you use the same Murrey number for all the different timeframes you look at or stay with just 1, Murrey numbers 4 8 16 32 64 128 256 512 1024 here would be 2 extreme setups 1st a 1min scalp trading chart followed by a Daily long term view of how I would look at your pair, let me just add I am self taught so still learning about finding the best way to use MurreyMaths {image} {image}
Sorry I didn't see your post , just saw It now.

I use murrey_math_line_x eng indicator.

I use only 1hour time frame and I change the input mmperiod to 240 min(4 hour) .

I have these settings on all pairs. I place price alerts on the extremes. If a price alert gets triggered I check for price action. If there is a strong rejection from these areas I enter a position and use proper sl and mm.

That's all, I don't want to go crazy with all the other different levels. Its impossible to successfully scalp these levels IMO.
So stick to high probability trades with proper mm and risk.
Attached File(s)
File Type: ex4 Murrey_Math_Line_X_eng.ex4   25 KB | 1,029 downloads
  • #29
  • Feb 27, 2017 1:03am Feb 27, 2017 1:03am
Long GBPUSD 1.2409 PROFIT 50pips
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  • #30
  • Feb 27, 2017 1:23am Feb 27, 2017 1:23am
Heavily overbought, price surge up to +1/8 level, about 5 pips
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  • #31
  • Feb 27, 2017 1:36am Feb 27, 2017 1:36am
Exited last trade with 5 pips and re-entered at the +2/8 level
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  • #32
  • Feb 27, 2017 2:13am Feb 27, 2017 2:13am
Bounce off +2/8th (recalculated as picture shows).
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  • #33
  • Feb 27, 2017 2:30am Feb 27, 2017 2:30am
Bounce off -2/8, recalculated to 2/8
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  • #34
  • Feb 27, 2017 2:37am Feb 27, 2017 2:37am
Last trade, going to sleep, off of the -1/8 hourly for GBPUSD, and -1/8 minute, easy trade, quick +10 pips, currently going at 15 and probably gonna go higher.
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  • #35
  • Feb 27, 2017 2:45am Feb 27, 2017 2:45am
Just by studying the system over the weekend and making trades tonight, I just have a few takeaway points about Murray Math Lines...

-They are extremely accurate and well respected. They are the only indicator, S/R-wise, that I am running right now. No daily pivots, or anything and they work fine.
-Fresh bounces are obviously the best. Meaning it hasn't been hit recently.
-If there is strong movement to the level then it means a bounce is likely, however wait for the pullback. You can see if people are looking to sell or buy based on how much price is whiplashing before it actually hits the level.
-Only the +- 1/8 and 2/8 levels should be used for minute 1 scalping when price is extremely overbought/oversold, these represent extremes and increase the likelihood of a profitable reversal. These bounces are usually at least 5 pips, unlike other levels. I use stochastics to see how long and how much price has been oversold/overbought. The more stochastic has been sitting at the top or bottom the better. That means price wants to reverse, and if it is at one of these extreme levels, the probability for a good trade is high.
-Fresh 1 hour bounces at the 0, 8/8 and +/- 1/8 2/8 levels are the strongest, wait for a pullback though because price could just burst through. Nonetheless, these levels can produce 10-20 pip bounces in less than 10 minutes.

EDIT: I previously stated that I would trade the 1 minute in the direction of the one hour and daily lines, however I find that it doesn't really affect profit for scalping the 1 minute levels. I only use the higher time frame levels for higher probability and profit scalps.
  • #36
  • Feb 27, 2017 4:39am Feb 27, 2017 4:39am
Quoting rnsfrd
Just by studying the system over the weekend and making trades tonight, I just have a few takeaway points about Murray Math Lines... -They are extremely accurate and well respected. They are the only indicator, S/R-wise, that I am running right now. No daily pivots, or anything and they work fine. -Fresh bounces are obviously the best. Meaning it hasn't been hit recently. -If there is strong movement to the level then it means a bounce is likely, however wait for the pullback. You can see if people are looking to sell or buy based on how much price...
Thanks rnsfrd for the analysis and the charts...
  • #37
  • Feb 27, 2017 4:41am Feb 27, 2017 4:41am
Quoting hibra68
{quote} Sorry I didn't see your post , just saw It now. I use murrey_math_line_x eng indicator. I use only 1hour time frame and I change the input mmperiod to 240 min(4 hour) . I have these settings on all pairs. I place price alerts on the extremes. If a price alert gets triggered I check for price action. If there is a strong rejection from these areas I enter a position and use proper sl and mm. That's all, I don't want to go crazy with all the other different levels. Its impossible to successfully scalp these levels IMO. So stick to high probability...
Hello Hibra68,

Thanks for your inputs on how you trade. When you get a chance, could you please a chart. It will be much appreciated...
  • #38
  • Feb 27, 2017 4:49am Feb 27, 2017 4:49am
Quoting rnsfrd
Just by studying the system over the weekend and making trades tonight, I just have a few takeaway points about Murray Math Lines... -They are extremely accurate and well respected. They are the only indicator, S/R-wise, that I am running right now. No daily pivots, or anything and they work fine. -Fresh bounces are obviously the best. Meaning it hasn't been hit recently. -If there is strong movement to the level then it means a bounce is likely, however wait for the pullback. You can see if people are looking to sell or buy based on how much price...
I echo aaven post thank you and good trading
  • #39
  • Feb 27, 2017 11:38am Feb 27, 2017 11:38am
Quoting OAPDave
{quote} I echo aaven post thank you and good trading
Quoting aaven
{quote} Thanks rnsfrd for the analysis and the charts...
Thank you, I'll try to keep posting charts every night until I decide whether or not to go live with the system. Then I'll start a Trader Journal. I have always been a high leverage scalper type, and these lines have really been a game changer. If I go live I think a 3 step martingale money management system would work pretty well given the high probability trades. Since the probability of a profitable trade is about 75% off key levels on the 1 minute chart, and 95% for 1 hour bounces, I think martingale might actually work. Ex: First trade would be .5 lots, if I lose I go to 1.0 lots. I have yet to lose twice in a row with this system, and trades that are lost were always in profit at one point. I just got greedy .
  • #40
  • Feb 27, 2017 11:57am Feb 27, 2017 11:57am
Quoting rnsfrd
{quote} {quote} Thank you, I'll try to keep posting charts every night until I decide whether or not to go live with the system. Then I'll start a Trader Journal. I have always been a high leverage scalper type, and these lines have really been a game changer. If I go live I think a 3 step martingale money management system would work pretty well given the high probability trades. Since the probability of a profitable trade is about 75% off key levels on the 1 minute chart, and 95% for 1 hour bounces, I think martingale might actually work. Ex:...
Hy...which setting are you using for Murray math at 1 minute tf?
Thanks
Regards
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