Murrey Maths Lines
On this site, you'll hardly ever find intentional plagiarizing so i instead
here give you pointers on this interesting technique:
http://mysite.verizon.net/bonniehill/pages/murrey.html
However, in case the above link is down or no longer accessible, the text from
Tim Kruzel is also available
here. A short
description of MM lines is also available on
this site. This is definitely worthwhile reading as MM lines combined to
Fibonacci are like "trading weapons" !
If you are interested in using MM Lines in TradeStation, the MM indicator
(ELD) can be downloaded from from the TradeStation forum (see below).
The function returns an array used in a ShowMe analysis technique, which
(unprotected) code is
self-explanatory.
MM Levels are generally interpreted the following way:
Upper Magenta Line - Ultimate Resistance
These lines are the hardest to penetrate on the
way up, and provide the greatest resistance. (Prices sometimes never make it
through these lines).
Dark Brown - Weak, Stall and Reverse
This line is weak. If prices run up too far too
fast, and if they stall at this line they will reverse down fast.
If prices do not stall at this line they will move up to the Upper
Resistance Line.
Upper White Line - Pivot, Reverse
This line is second only to the Central Yellow line in
its ability to force prices to reverse. This is true whether prices are
moving up or down.
Upper Green Line - Top of Trading Range (not
displayed but available in EL function)
The prices of all entities will spend 40% of
the time moving between the Upper Green line and Lower Green line. If prices
move above the Upper Green line and stay above it for 10 to 12 bars, the
entity is said to be selling at a premium to what one wants to pay for it
and prices will tend to stay above this line in the "premium area". If,
however, prices fall below the Upper Green line then they will tend to fall
further looking for support at a lower level.
Central Yellow Line - Major Support/Resistance
Point Point
This line provides the greatest amount of
support and resistance. This line has the greatest support when prices are
above it and the greatest resistance when prices are below it. This price
level is the best level to sell and buy against.
Lower Green Line - Bottom of Trading Range (not
displayed but available in EL function)
If prices are below this line and moving
upwards, this line is difficult to penetrate. If prices penetrate above this
line and stay above this line for 10 to 12 bars then prices will stay above
this line and spend 40% of the time moving between this line and the Upper
Green line.
Lower White Lines - Pivot, Reverse
This line is second only to the Central Yellow line in
its ability to force prices to reverse. This is true whether prices are
moving up or down.
Lower Brown Line - Weak, Stall and Reverse
This line is weak. If prices run down too far
too fast, and if they stall at this line they will reverse up fast. If
prices do not stall at this line they will move down to the Support Line.
Lower Cyan Line - Ultimate Support
These lines are the hardest to penetrate on the
way down and provide the greatest support. (Prices sometimes never make it
through these lines).
Please note these dynamic MM lines have absolutely nothing in common with
static support/resistance levels as calculated from the previous day's mid
price etc (http://www.mypivots.com/calculators/pivot-point-calculator.aspx)
Price: Free, and EL source code posted on TradeStation Forum under the
name of "dexter"
(https://www.tradestation.com/Discussions/Topic.aspx?Topic_ID=20964&Page=4)
Support: None (and none needed really)
Status: Complete. Does not require an external DLL.
Note however that the version included in our toolset is coded in the DLL so
that levels are recorded in shared memory.
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