The Murrey Math Lines indicator is a pivot line indicator which will help you how to trade with support, resistance and pivot lines. It shows 8 different lines - with possible additional lines - on your main chart, helping you to find the best points to sell, buy and exit orders.
Since, according to Gann, prices move in 1/8's, these 1/8's act as points of price support and
resistance as an entity's price changes in time. Given this 1/8 characteristic of price action,
Murrey assigns properties to each of the MML's in an a given octave. These properties are listed here for convenience.
8/8 th's and 0/8 th's Lines are the "Ultimate Resistance"
These lines are the hardest to break on the way up, and give the greatest support on the way down.
7/8 th's Line is Weak, Stall and Reverse
This line is weak. When the price runs up too far too fast and when it stalls at this line it will reverse down fast. When the price does not stall at this line it will move up to the 8/8 th's line.
6/8 th's and 2/8 th's Lines is Pivot, Reverse
These two lines are second only to the 4/8 th's line in their ability to force a price to reverse. This is true whether the price is moving up or down.
5/8 th's Line is the Top of Trading Range
The price of all entities will spend 40% of the time moving between the 5/8 th's and 3/8 th's
lines. When the price moves above the 5/8 th's line and stays above it for 10 to 12 days, the entity is said to be selling at a premium to what one wants to pay for it and the price will tend to stay above this line in the "premium area". When the price falls below the 5/8 th's line then it will tend to fall further looking for support at a lower level.
4/8 th's Line is Major Support/Resistance
This line offers the greatest amount of support and resistance. This line has the greatest
support if the price is above it and the greatest resistance if the price is below it. This price
level is the best level to sell and buy against.
3/8 th's Line is Bottom of Trading Range
When the price is below this line and moving upwards, this line is difficult to break. When the price breaks above this line and stays above this line for 10 to 12 days then the price will stay above this line and spend 40% of the time moving between this line and the 5/8 th's line.
1/8 th Line is Weak, Stall and Reverse
This line is weak. When the price runs down too far too fast and when it stalls at this line it will reverse up fast. When the price does not stall at this line it will move down to the 0/8 th's line.
You can download the indicator here: https://www.mql5.com/en/code/8570