Murrey Math Trading Strategy 1


All those interested in Murrey Math now have a reason to rejoice. Starting this month, I will keep on posting several strategies that you can use to take advantage of the daily price movements in the stock and foreign exchange markets across the globe.

Use the excel sheet found over at https://candidwriter.wordpress.com/2018/05/05/murrey-math-excel-calculator/ to calculate the levels accurately. The High and Low price taken depends exclusively on the time frame you focus upon to make trading decisions. If you are a day trader, use the current day’s high and low. Swing traders can look at the monthly highs and lows.

Sell at 7/8 or 8/8 or +1/8 and even +2/8 with the target of 4/8. Alternatively buy at 1/8 or 0/8 or -1/8 or -2/8. Once again, the target is 4/8. This is the core strategy Murrey implies throughout his courses and webinars available all over the internet.

Does this strategy work all the time? No it doesn’t. However, it works when the market ranges on a particular day/month/year. Over the years, I have found that even though prices tend to range a lot, the percentage of winning trades are extremely low. Quite often, I found the prices taking some rest once it reaches these points (7/8, 8/8, +1/8, +2/8, 1/8, 0/8, -1/8 and -2/8) and then surging through these prices as if they never existed.

I am listing this as the first strategy because this is exactly what Murrey wants us to do with the trading system he had discovered sometime at around 1992. As expected, I had spent quite a lot of time looking at this simple strategy only to theorize that it works well when the instrument you are trying to trade ranges a lot instead of trending. Perhaps it could also explain why Murrey asks us to focus on longer time frames.

Here is the entire strategy in pictorial form.

Stay tuned for the next strategy.

About Praveen Pious Francis
A part-time blogger who has a wide range of interests including investing in the stock markets across the globe and broadband technologies in India. If you feel that this post has helped improve your daily trading activities, please consider donating to my PayPal praveenpious@live.com. Donations encourage me to keep on researching newer day trading strategies.

2 Responses to Murrey Math Trading Strategy 1

  1. Pingback: Murrey Math Excel Calculator | Candid Writer

  2. Pingback: Murrey Math Trading Strategy 2 | Candid Writer

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