Murrey Math Trading Strategy 2

Every month, I will post an unique trading strategy based on Murrey Math. Here is the strategy for this month.

Enter the high and low for the time period you wish to trade. Now pay close attention to 7/8 and 1/8. Wait for the instrument to touch either 7/8 or 1/8. If it touches 7/8, sell at that price. Stop loss for this trade will be +1/8.

Similarly, if the price touches 1/8, buy at that price and keep the stop loss at -1/8.

Now, the markets are always unpredictable. Once you sell at 7/8, there might be instances where the price might surge even higher and touch +1/8. If it does so, please follow the trend and buy at +1/8. Stop loss for that long trade will be 7/8. Likewise, if you buy at 1/8 and see the price falling down to trigger the stop loss set at -1/8, then sell at -1/8 and follow the trend. Stop loss for this short trade will be 1/8.

Here is the strategy in pictorial form.

In the meantime, do checkout Murrey Math Trading Strategy 1

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.

Plagiarising Content Without My Permission

One of the reasons I stopped updating this website is due to the rampant levels of plagiarism that exists among Indians. They show no shame in copy/pasting my content and posting it as their own in their websites. Recently, someone informed me that an article I had written about Murrey Math has found its way to https://www.mcxniftytips.com/day-trade-using-murrey-math/

I did a google search for this website and found that there are numerous complaints against them for fraud and cheating their subscribers. No wonder they decided to plagiarise my content!

It can be disappointing to see my curated content being copied and published in other blogs. At least have the courtesy to give some credit to me.

I had originally posted the article on http://ezinearticles.com/?How-to-Day-Trade-Using-Murrey-Math&id=9173936 on September 2015.

Murrey Math Excel Calculator

Traders have their own belief systems. Some think that trend trading works. Certain other will keep on praising counter-trend trading systems. There is no definite way to trade and make money. Traders need to find something that they are comfortable with and stick to it.

In this post, I would like to give away an excel sheet that I found online. This excel sheet calculates Murrey Math levels accurately. Just enter the high and the low of the financial instrument in the excel sheet. The sheet will generate certain values. Use the sheet to take the appropriate trading decisions.

Download the excel sheet from Murrey Math Excel

As far as I know, this sheet generates the most accurate values.

While using the excel sheet, please do bear in mind that Murrey does not ask us to consider just the high and low of the financial entity. In fact, the exact terms he uses on his book is as follows – Setting up Mathematical Rhythm for your Stock (Setting up range of Fluctuation and not off high or low).

Always have this simple fact in mind while trying to come with trading decisions using this excel sheet.

In the meantime, feel free to check out some of the Murrey Math Trading Strategies.

Murrey Math Trading Strategy 1

Murrey Math Trading Strategy 2

Murrey Math Trading Articles

Murrey decided to publish a series of articles in the Traders World technical analysis magazine a couple of years back. I have collected most of them and have posted it.

While going through these articles, you will notice that Murrey spends a great deal of time trying to ridicule every trader out there who does not follow his system.

His ramblings might be interesting to the traders who are interested to learn more about murrey math.

Download from https://mega.nz/#F!7sow2JhT!XkRKDYeknNEvlCOWmBW2AA

Use Sumatra PDF to view the files with DJVU extension.

Murrey math for day trading – 1

EzineArticles.com just published an introductory article I wrote about Murrey Math. How To Day Trade Using Murrey Math.

Murrey Math is an esoteric trading system. The beginners will feel elated initially because it might appear that the markets follow the levels generated by this system. Those of you who see this for the first time will start thinking about all the money that you can make using the excel sheet attached below. Sometime back in 1992, Thomas H Murrey rediscovered this trading system after reading a certain book written by none other than W D Gann.

The underlying math which has led to the generation of the system is quite complicated as well. Murrey repeatedly emphasizes on the fact that anyone who has eight grade education will be able to decipher the system easily. However, the reality is something else. I will be uploading certain articles written by the man himself shortly.

Murrey Math Jacek Excel is an excel sheet that can generate the Murrey Math levels quite accurately.

Enter the High and the Low price of the stock / commodity / forex instrument in the appropriate areas. You have the option of taking the day’s high / low. If you are a swing trader, then it will be better to take the weekly / monthly / yearly high and low prices. The sheet will generate some values. If you are trading forex, make it a point to format the cells so that it shows the appropriate decimal levels.

How to trade the markets using this excel sheet?

Here is a simple explanation for the levels.

murrey_math_levels

In other terms, short at 7/8 or 8/8 or +1/8 or +2/8 while keeping the target at 4/8 or 1/8, 0/8 or -1/8 or even -2/8. Traders can also buy every time the price touches 1/8 or 0/8 or -1/8 or -1/8 while keeping the target at 4/8 or 7/8 or 8/8 or +1/8 or +2/8.

Traders can also use the picture depicted below to make trading decisions.

murrey_math_levels_1

Murrey Math revolves around the basic premise that the only way to make money trading the markets is to sell high and to buy low.

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