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The Murray Levels indicator is today considered one of the most effective tools designed to find significant support and resistance. As you might guess from the name of the indicator, the formula for calculating these levels was created by Thomas Murray, a famous trader, and teacher, whose name became widely known just after the presentation of the corresponding levels.
Murrey Levels System MT4 Indicator.
Indicator settings
Despite the fact that the algorithm of this tool is based on the developments of Gann, for its correct operation, you do not need to install any additional indicators - you just need to copy the Murrey Levels System.ex4 file to the corresponding terminal folder. If everything was done according to the standard instructions, then after restarting MetaTrader4, the corresponding algorithm will appear in the navigator.
Setting up the Murray tool parameters also is simple - all you need to do is set the period for calculating the levels.
Murrey Levels System Indicator mt4. Parameters
Indicator signals
You should work with this indicator based on the location of the levels, which, depending on their color and name, indicate a possible price rebound or reversal.
Each of the presented levels of the Murray indicator possesses unique properties; namely, the codes 0/8 and 8/8 indicate the strongest support/resistance, which will be very difficult to break through, so you should work on a pullback. And if the price has overcome one of these levels, then it’s time to prepare for a strong impulse and rebuild the entire chart.
It should be noted that in the decision-making process, the marks -2/8, +2/8, 1/8 and +1/8 should not be taken seriously; if the asset price is near the listed price ranges, it is better to switch either to a higher timeframe.
The rest of the indicator levels can be viewed as:
4/8 is an important milestone, not inferior in strength to the rest of the blue lines. Depending on where the price is now located, it can play both the role of support and act as resistance;
The 3/8 and 5/8 lines mark the boundaries of the median channel, in which the price stays most of the time. These marks should be considered only as preliminary goals of the movement, i.e., it is not recommended to try to work from them on a hang-up (as in a flat);
2/8 and 6/8 are another set of strong levels, the scope of which is quite extensive. In particular, they can be considered as basic support and resistance, but most often, the red lines are used to calculate the potential of corrections formed within the main trend.
Conclusion
The Murray Levels Indicator is a very useful tool that helps a trader to identify possible price reversal points. Combined with trend-determining indicators as filters, this tool will help you build your own unique trading systems and ideas.
Tip: Can’t open the downloaded archive file (ZIP or RAR)?
Try WinRAR for Windows or The Unarchiver for Mac .
Do you need help with installing this indicator into MT4 for Windows or Mac OS? Our guide HERE will help you.
