Murrey Math Levels as Support, Resistance, and Trading-Range Signals

Summary

The document explains Murrey Math levels as a set of price zones derived from the high-low range over a lookback period. It describes the outer 0/8 and 8/8 levels as major support and resistance, the 4/8 midpoint as a key pivot, and the 3/8 and 5/8 levels as boundaries of a trading range. The 1/8 and 7/8 levels are presented as possible reversal areas after rapid moves, while continued movement through them may point toward the outer levels.

It also describes interpreting price behavior around these zones, including whether price holds above or falls below a level. A calculation example uses a 64-period range and divides it into eighths, but the provided formula appears to contain ordering or consistency issues, so implementation should be checked. The notes present trading heuristics rather than empirical validation; they give no performance testing or risk controls, and their stated time-based tendencies should not be treated as proven across markets.

Key ideas

• Murrey Math divides a recent price range into eighth-based reference levels.
• The 0/8 and 8/8 levels are described as outer support and resistance, while 4/8 is the central pivot.
• The 3/8 and 5/8 levels frame a commonly observed trading range in the method.
• Price reaction or continuation around 1/8 and 7/8 is used to suggest reversal or further movement.
• The calculation example needs verification, and the document provides no empirical test of its trading claims.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.