Murrey Math Line X Indicator MT4 | MT5

The MMLX is classified as a level-based indicator, based on Murrey Math trading concepts. It helps traders analyze market movements by plotting support and resistance levels. These lines are divided into nine primary levels and four additional sub-levels, each serving a specific purpose in technical analysis, aiding traders to make informed trade decisions:  

• 4/8 (Major Pivot Level): This is a key decision area. When the price crosses this level, it may indicate a potential buy or sell signal.  
• 3/8 and 5/8 (Range Zone): When the price fluctuates between these levels, it suggests a sideways market or consolidation phase. Traders can enter long near the 3/8 line and short near the 5/8 line or also wait for any breakout to confirm trend continuation.
• 2/8 and 6/8 (Pivot/Reversal Levels): The 2/8 level acts as a strong support level, where price rebounds may signal a bullish reversal. Conversely, the 6/8 level serves as strong resistance, where price rejection may indicate a bearish reversal.  
• 1/8 and 7/8 (Weak Support/Resistance): These levels represent weaker support and resistance. If the price rebounds from them, it may indicate a potential reversal, whereas a breakout beyond them could signal trend continuation.  
• 0/8 and 8/8 (Ultimate Support/Resistance): These are the strongest support and resistance levels. A price rebound from these zones suggests a high probability reversal, while a breakout indicates a strong trend continuation.  
• -1/8 and -2/8 (Oversold Zone): If the price breaks below all support levels and enters this zone, it may indicate an extreme bearish condition. A subsequent rebound from this area could signal a potential bullish reversal.  
• +1/8 and +2/8 (Overbought Zone): If the price surpasses all resistance levels and enters this zone, it suggests an extremely bullish condition. A rejection from this level indicates a potential bearish reversal.  

The MMLX is best utilized alongside other technical indicators, such as trendlines, oscillators, and volume analysis, to enhance trade accuracy and avoid false signals.

In the USDJPY chart example on MT4, H4 timeframe, when the price breaks above the 4/8 and 5/8 levels, it signals a bullish movement, presenting a buying opportunity. As the price reaches the overbought zone and retests the ultimate resistance, confirming the bearish reversal, suggests an exit point for the buying position and potential short entry. The price then falls and breaks multiple support levels, signaling the continuation of the bearish momentum. When the oversold zone is detected by the price, that signals the reversal to a strong bullish reversal, signaling a buying opportunity. For risk management, traders could set their TP below the resistance levels and SL above the support levels to avoid any false signals for the long positions, and conversely for the short positions.

In the EURGBP chart example on MT5, 15M timeframe, the price rises above the 4/8 and 5/8 levels, signaling a buying opportunity and any reversal from the 7/8 level 6/8 levels suggests a short opportunity. When the price breaks above the yellow line and reaches the ultimate resistance, signaling a strong bearish reversal. The downtrend begins and scalpers could enter selling in the market to make profits, setting their TP above the ultimate support and their SL above the resistance levels and any breaks through support levels indicating a strong bearish continuation. 

As I mentioned, this indicator can offer valuable buying and selling signals for both day traders and scalpers, helping them set effective SL and TP points while analyzing market movements efficiently using its predefined levels.