The Murrey Math Trading System - page 132
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Murrey Math Trip Lines
I don't know if anyone has ever tried this before but it looks promising. I came across Murrey Math last week and was trying to incorporate it into my William's2000 strategy but I think the lines themselves could form a separate system. Please don't hesitate to point out any flaws in my logic.
Please see the attached pic.
The signal itself is incredibly simple as-is. No filters, no indicators. I like simplicity. Fewer parts that break, fewer parts to blame.
From what I read about Murrey Math Lines the idea is to sell at the top of the range and try to ride it down by 3 zones in that direction. Reverse for buy.
From what I observe, any decent intra day trader should be able to buy or sell at ANY crossing of the lines (The trip) and show a profit.
I did say it was simple.
Yes, there is congestion. There are times when you'd be opening a trade only to close it, but just like in the William's2000 sytem the price has no choice but to continue in one direction or another (break out) sooner rather than later.
There is ample space between zones to more than make up for any loss taken as a result of opening and closing a lot of trades.
Yes, this is a subjective trading strategy. The user would have to be proficient with managing an active trade in order to get maximum pips out of each run. This includes recognizing areas of support and resistance, analyzing volume, etc.
I'm not big on EAs but I guess one could be coded. The hard part would be hard coding entry and exit rules.
On the attached pic I considered the second to last signal as a loss to illustrate that you don't have to catch every run to show a profit. Even if we had closed that one late and it turned into a loss the subsequent run up would have more than made up for it.
So, I suggest that we get together and share ideas on how to manage the trade with focus on ideas on how to know when to get out.
I'll start. These ideas were first shared in my WIlliam's2000 thread but they may be new to you.
4periodMA:
This is a multi time frame indicator that shows various Moving Averages and Fib markers across time frames. This indicator is very useful for making an estimate of where price may go. Generally speaking the price likes to crash through large gaps in support/resistance. The argument is that the price is like a river in that it will take the path of least resistance. Of course this doesn't work all of the time but it is none the less very powerful.
Juice_Mod:
This indicator by Igorad shows relative volume. Very useful when combined with Bill William's Market Facilitation Index.
TD Sequential:
The important thing about this indicator for our purposes is that it displays a 9 above the price when the last 9 candles have been bullish and a 9 below when the last 9 have been bearish. For some reason the price seems to have trouble moving up or down more than 9 candles in one direction.
I'm not suggesting that 9 is some kind of magic number mind you. There are plenty of times when the opposite occurs so that the price will shoot up 20 pips when a bullish 9 appears. This indicator is not useful as a trading signal but it's damned useful as a heads-up indicator. It will tell you when you need to sit up and pay attention.
Boll_Pocket:
This indicator from Brookey29 designates 'pockets', the space between two bollinger bands. When price moves up into the bullish or bearish pocket it will retrace. The only question is by how much and whether or not the retraction will end up reversing the current trend.
Gann ZigZag:
This is a truly great zig zag indicator. It doesn't change directions lightly.
The last three indicators can be used on any time frame and in fact should be used on all time frames in order to get a clear picture of where price may go.
I've attached a picture of my Forex Cockpit concept that uses these indicators. I use this for scalping and it's great for managing a live trade.
This strategy is suitable for those of us who like trading an actual eight hour shift. You can safely jump into any currency pair but be aware that you may have to stay at the computer for several hours afterward. Let's say you that EUR/USD moves up the next trip line and you buy. It moves back down and you sell. Let's say that takes an hour. Then it moves back up and you buy again. This time it takes off, moving 50 pips upward. That's another hour.
Just an example.
Clear Trading Rules:
Buy when the price closes above the trip line. If the price then closes below the trip line close the position and sell. Rinse and repeat until the currency pair pics a definite direction to move in and then mange the trade.
The good news is that the price won't usually congest on the trip lines and that you will have times when price moves like a rocket 100-200 pips in your direction within a few minutes. It happens. In fact, if you can safely get in and out when news comes out and it's close to a trip line go for it.
Eye Candy
I would have loved to have been around when this happened.
Not to mention that an intrepid trader could have ridden it back up from 88.94. Those sudden price dips or spikes usually form 'V' patterns.
The second pic shows the signals seen from the 1 min time frame.
Lol
Sorry, I forgot to post the Murry Math indicator.
The attached pic shows some more eye candy.
-----
There's a possible trade in the works for EUR/JPY.
Just entered long in EUR/JPY.
Here's a possible entry for NZD/USD. Exited the EUR/JPY trade for a profit.
Obviously in hind site I exited the EUR/JPY trend very early. It's now around .42.
Template and Indi Update
Cy Hi,
Nice simple system for the hands on trader.
Noticed you had no template so I wrapped one up with all the files to make it easier for newbies. Couple of small changes to two of the indis you might find useful.
1) Juice. I added the option of seeing it as a line. I struggled with this indi till I saw it as a line. May be useful for others.
2) The Boll_Pocket indi now has an option of a seeing a star on the critical mean crossing candles. I find it a good alert when it pops up and I just turn them off if I want to see the exact candle behaviour.
3) I added the fractal channel indi because you seem to show it on some of your pics but make no mention of it. I find it useful as a micro sup/res indicator but it might be overload for others.
Had a little fun making the template as I ducked in and out of 3 euro trades for a bit of successful momentum scalping between the td sequentials. Just ran them with a tight trailer as my mind wasn't really on trading.
Cheers.
ZIP Contains.
*********************************
* 4_Period_MA.mq4
* Boll_PocketV1.1.mq4
* Fractal Channel.mq4
* GannZigZag.mq4
* Juice_mod_v1.2.1.mq4
* Murrey_Math_Line_X_eng.mq4
* TD Sequential_v1.mq4
* murray_trigger.tpl
* murraytrigger.gif
*********************************
As always Brookey, you are the man. Juice does look better as a line, coolness. That's how I use the fractal channel too but I don't mention it because it's not strictly necessary to drill down to that level of price movement but it never hurts.
Brookey,
I'm looking to get a Forex experiment started if you want to join. We need 1488 more people and we can get started. It's free of course, I just want people to agree to actually take part if we can get that many.
Once we get close I'll put up a site dedicated to it with forum.
About the system:
For anyone reading this, it can be kind of scary to just open and close trades back to back just because the price is moving over a line. Usually the price picks a direction from these Murrey Math lines in fairly straight order. For goodness sakes, if you try this, make sure you do it on a demo account first. If you aren't used to it you might freak out.
The only downside to this system is that for every time that you close a trade and re enter in the opposite direction the eventual price move must be bigger for you to see a profit. The good news is that 90% of the time the price does move significantly off of these lines. Just open a chart and see for yourself.
Hey
Could you please post the histogram indicator ?
ThanksHi There, the histo indy was rewriting too much...changed to this one...
Also, here is a revised MurreyMath indicator.
All the best
Xard777
Thank you for the reply...lets see if I can get these pics in...
Well, while I figure out how to insert images...on eur/usd in both templates, price is near 2/8 (2.8 is @ 1.3306) but in eur/gbp the final draft the price is down near -1/8 (-1/8 price @ .8972) but in x-screen the price is near 6/8 (6/8 price @ .8972)...so while both are at .8972 the final draft template is at the bottom of the scale and the x-screen is near the top...heck I don't even know if that means anything overall...
ok...now to see about posting the picksI see what you mean, there are two diff versions of mm at play here, one use standard mm calc which shows the lower scale and the other version uses a diff calc. Its ok whatever version you use as you treat the 6/8 line the same as the 2/8 line as you do with the 8/8 and 4/8 etc... You can trade away with whichever one you want. for instance one may show price at 6/8 which is a major reverse also the other version may show the same price at +2/8 which again is a major reverse. So in the long run it does not matter which version you use as you would be expecting similar results at support/resistance levels.
Xard777
ps I use this version...M-Math v3 with default settings...good for all timeframes. Also, included fonts.zip which inc MV Boli font from windows 7 os
re Octaves
Here is an octave indicator I have been working on...
Xard777