One of the readers of my last article on Murray lines (who identified himself as ‘Guest’) had commented that he could draw any line anywhere on the chart and the price would respect it and that unless there was something which told him that the price would indeed reverse at a specific line, then it was useless…i quote him below,
‘If you draw a bunch of lines on your chart after every specific small interval, it will always find support or resistance. Can it identify with a good probability where a pullback is going to occur? Otherwise, it’s a pure crap.’
I respect his opinion and i do understand what he is talking about. But in trading, there is no hard and fast rule that will make us money. The beauty of trading lies in the fact that there are infinite ways of making money and there are also infinite ways of losing money as well.
I could tell you 10 methods or strategies and prove to you that all of them work. In fact, all you need to do is just search the net, find the most popular strategies and you can see that it works. But i can call a 100 people and give them these 10 methods and i am sure that not even 5 people would be profitable after 6 months.
Why? Because trading is as much about finding a good strategy as it is about money management,discipline and psychology. Each one of us is different (thats why we are humans and not machines) and thats why even if 10 people were to trade the same method, their results would always be different in the long run.
So coming back to the original point, no , murray lines do not tell you when the price would reverse. They just give you regions where price might reverse. Then, you need to come up with your own strategy (either you have an oscillator or an indicator or can use just price action) and combine that with patience and discipline to find where you can buy and sell.
By Karthik Subramanian Follow Karthik on Twitter.
More Indicator Articles
Why Use Indicators?
How to Trade the Parabolic SAR
Using Murray Lines
Forex Power Indicator
Using Simple Moving Averages
Ichimoku Kinko Hyo Indicator
Average True Range (ATR)
Latest posts by admin (see all)
- The Secret of Taking Profit and Why it is Important - September 20, 2017
- Fading the Momentum in Forex Trading - September 14, 2017
- Trend Line Drawing With Fractals - September 8, 2017
Winner’s Edge Trading, as seen on: