Murrey and Gann - the cornerstone
A component of our methodology is mathematically defining support and resistance, citing market channels and angles, potential inflexion points, and regressions from these points. We use Andrews Median Lines and Babson Action/Reaction Lines as their simplicity suits our ideals of minimizing stress and secondly to search for points of confluence around key points of inflection.
Drawing Median Lines
Our reversal methodology determines points of confluence in both time and price within a probability framework. Our reversal methodology utilizes the following:
- Equilibrium Points
- Parallel Momentum Lines
- Points of Confluence
- Murrey’s 5 Circles of Conflict
- Speed Lines
- Fibonacci Lines
- Pattern Recognition
- Coils and Energy Zones
The Golden Rules of Reversal
- W.D. Gann set his trading strategy for any markets’ reversals most frequently at 0.618 or the reciprocal 0.382 of any high/low price extreme over any given period of time.
- The T.H. Murrey ratio (MMRPM Murrey Math Ratio of Price Movement) equals 0.625 (reciprocal 0.375). This is the harmonic sound pitch change of any market set to the base of 10.