This article further illustrates a point about murray lines and here i
present it using a chart from today.So i am not trying to pick some
random chart from history to prove a point. Anyway, attached is the
M15 chart of GU today. You can easily see how the price obeyed the MM
levels to a great extent.
Price made the initial move up to around the green line at 1.5472 and
then fell down piercing through various MM levels stopping for some
time at 1.5411 and then finally at 1.5350, all these levels were
already established MM levels right in the morning.
So, how do you trade these levels ? What would tell us that the price,
when going up, would stop near 1.5472 and when falling down,would stop
at 1.5411 or at 1.5350 ? If you could give this chart to 10 traders,
each would trade it in a different way. Some would take a short at
1.5472 and exit when price drops 30 pips, or wait till it reaches
1.5411 or some would have the guts to wait till 1.5350 and take full
and good profits. Or others may exit half at 1.5411 and the rest at
1.5350. There are so many different ways that you can trade this.
Nothing related to murray levels tells you that the price would stop
at any level. For that, you need to learn and use other techniques,
which i will be explaining in future articles.
By Karthik Subramanian Follow Karthik on Twitter.
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