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Trade
Murray levels - determined market goal
A trader there are quite a few different options to determine price levels. The level of Henning Murray is based on the theory. D. Anna, who in the first half of the twentieth century suggested that financial market theory, ' which, I must say, was quite bulky. Data, becomes available, and it was not important enough, considering that at the time of automation the analysis was not.
To better understand the principle of building the levels, it should elaborate on the methodology. Of course, using the indicator of Murray levels the trader already there is no need to perform calculations manually, but it is better to have an idea of how markings graphics.
What is support and resistance?
When executed using the price chart in front of us must be 13 horizontal lines equidistant from each other. 9 lines can be called the main levels and 4 extra levels of bounce rates.
The graphical construction of the indicator determines the major reversal levels (0/8 and 8/8), and then divides the distance between them into 8 equal parts. Horizontal lines that divide the entire price range into equal parts, what is a 9 parallel lines. These price levels then we will consider the main.
Basic levels are as follows: 0/8, 1/8, 2/8, 3/8, 4/8, 5/8, 6/8, 7/8, 8/8. They all have a certain importance, and, mirrored about the mid line 4/8. That is, features can be grouped as follows: 0/8 and 8/8, 7/8 and 1/8, 2/8 and 6/8, 3/8 and 5/8, 4/8 – the middle line of the build.
List the features of the main Murray levels:
• 0/8 and 8/8 – the strongest level, that they have a high probability of a price reversal in the opposite direction;
• 1/8 and 7/8 – weak levels, which can be easily punched price. If the market stopped at these lines for some time, it increases the likelihood of a rapid reversal;
• 2/8 and 6/8 seem to be the second levels after a couple of 0/8 and 8/8. The probability of a market reversal.
• 3/8 5/8 – level, which often create a channel for flat. As a rule, the price often goes through these lines and ranges channel formed 3/8 and 5/8.
• 4/8 – the middle line, which is considered a good place for the conclusion of the agreement in the following cases: if the price moves from breaks 0/8 and 4/8, it makes sense to conclude a deal to buy, but if the price goes from 8/8 and hit the middle line down, you should think about selling the instrument.
In cases of breakdown of the boundaries of the 0/8 and 8/8 on the chart and there is additional line:
• +1/8 +2/8 built above the line 8/8;
• -1/8 and -2/8 are built below the line 0/8.
The probability of a price reversal have additional lines high. To work toward breaking +1/8, +2/8, -1/8, -2/8, perhaps you should not.
Beginners to learn the levels of Murray, before it was problematic to correctly apply the line on the chart. By automating this process, man is now sufficient to set an indicator like that in just a second will cause all of the required values. Note that when switching timeframe all construction immediately replaced by a new, relevant for the current TF. Download of the indicator of Murray levels can right here:
Set in MetaTrader 4 it is exactly the same as the other indicators. The path will be something like this: C:Program FilesMetaTrader 4MQL4Indicators. Restart your terminal (close and run again). The program should appear in the list of indicators, see the User.
To install the new version of the programs may need to carry the indicator in another way. Run the terminal, click in the top left corner of the file (file), then Open Data Folder (open data folder), open the MQL4 folder, open Indicators folder and copy indicator. Close the terminal, and then the next run the program will appear in the list of custom indicators.
Open chart of the currency pair that you plan to use in the trade, by TF and add an indicator as any other. Here we see colored lines, each of which is signed. This is the levels Murray, courtesy of a built indicator.
When you install Murrey Levels, we can choose in the settings of the period, which defaults to 64. You can change the values depending on the trading instrument chosen for the work, as well as the established timeframe. This setting should be done independently, taking into account characteristics of the currency pair.
The application of the Murray levels in the trade
About the properties of certain levels you can already guess by reading the description of their features, which is located in this article above. However, I would like to tell what might be the benefits of this build.
At first glance, the indicator can be used to find entry points in the transaction, for example, in the breakdown of 4/8. Also, you could look at a deal in the direction of the price reversal from the 0/8 and 8/8 lines. This is the most strong signals, which is considered not a few traders who use Forex.
In addition to the agreement, the Murray levels will need to place orders Take Profit and Stop Loss. Of course, working out the particular features of the lines is probabilistic in nature, but even this is often sufficient. To determine the optimal location of the orders.
Consider the example. Let the trader has signed a deal to buy when the price has passed from the 0/8 level up to the line 4/8. At the conclusion of the transaction, the speculator has taken into account the characteristics of all the lines, then put the Take Profit a few pips below the 8/8 level. Similarly, considering the lower part of the price channel, the trader decided to place a Stop loss a few pips below the 0/8 level.
It is obvious that the probability of breakdown of the line 8/8 below, according to the theory of Murray than the headline. This means that the Take Profit should be placed on such market value to be achieved in price faster than 8/8. A similar situation with a Stop Loss order. As above, the probability of rebound from the 0/8 line than overcoming it market, Stop Loss is an important level, that is, a few pips below it.
Indicator Murray allows the speculator:
• quickly become familiar with the market situation,
• get an idea when to exit trades, place orders and open position.
Due to its device-level build gets on well with other trading strategies, often supplementing them. To date, the Murray levels is one of the most popular theories, allowing to determine on the market the best point for orders Take Profit and Stop Loss.
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| Category: Forex | Added by: (30.10.2017)
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| Views: 407
| Rating: 0.0/0 |
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