Trading Using Murray Maths & MT4

#1
hi all, though i am a bit new here, i have been trading stocks and FX for the past 16 years. Started off with stocks in the year 2001 and then shifted to FX within a couple of years. Nowadays, i trade stocks, indian currency derivatives and FX.

I thought i would share some of the knowledge that i have gained over the years as far as technical analysis is concerned. TA is great in the sense that it can be used in any instrument and the basics and the fundamentals would remain the same. What is support would be support in any instrument and same with resistance.

I prefer charts with minimal lines on them and i use MT4 charting platform as it gives me a lot of flexibility and it is very user friendly. I can code my own indicators and there are 1000s of different indicators and scripts available online, which makes my job easy.

I will be starting a few threads based on different strategies and systems that i have come across and developed on my own. Lets see how it goes.
 
#2
here is a chart of HDFC with some of the Murray Math levels mapped out. I use an indicator for mapping out the murray math levels. The murray math levels divide price and time into sequences of 8 levels based on some complex arithmetic. we dont need to know how it does that. all we need to do is to follow the levels.
 

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#3
an advantage of these MM lines is the fact that not only does it act as very good points of support and resistance, it also helps to identify the swing low and high by itself and then divides the price and time by 8 and gives us the levels that we should be taking care of.

they work in all timeframes but the levels made on 1 timeframe should not be confused or compared with the levels made on another timeframe.

the even number levels are strong regions of support and resistance while the odd numbered ones are weaker.

Also, note the fact that i talk about regions and not points. supports and resistances are never single points, there are regions where you find buying and selling.
 
#5
Attached is another chart, this time of Kotak, with the MM levels so that you can see the lines and get used to what they are trying to tell you. I shall explain these levels a bit later.
if you look at the MM levels, as i said, the even numbered ones are the strongest. So, if you look at the Kotak chart that i have posted, a long bar has broken through the 0 level and a similar long bar has broken through the 2nd level. These indicate a lot of buying and this is natural as a lot of buying is needed to break through regions of resistance (which are essentially price regions where a lot of sells are present).

The 7th level is the place where a lot of selling comes in and presents the most danger of the trend coming to an end or taking a break. The 7th level for Kotak comes in at around 970 and yesterday, we saw the price reach there and today, we see the price struggling to cross that region though the Nifty is Up for the day.

It is easy to present charts after the fact and explain things to fit the charts but as you see, the chart is from last week and you see the action and the levels yesterday and today match the MM levels. That shows the power of these levels.
 
#6
Below is the updated chart from yesterday. You see the price move to the 7th level at the 970 region and as i see now, the price is struggling at 966 now. All this was already indicated by the MM levels last week.
 

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Shikamaru

What a drag!!!
#7

Shikamaru

What a drag!!!
#8
Hi,
What period you are using for murray maths indicator?