Curioso wrote: Sun Oct 20, 2024 1:48 am Hello friends,

I hope you're all well, that you've had a great week full of knowledge, with many and more gains and fewer losses, and that you're managing to turn your story around into something beautiful and unique. These days is really impressive in daily results, and i never imagine is possible every day better the previous one, but we always learn more from our mistakes than from our victories.

A few days ago member amernegm brought up a very interesting topic and I decided to ask ChatGPT about Murray Math with ADR Level and what his response was:

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Using **Murray Math** and **ADR (Average Daily Range)** levels together can help you identify optimal entry and exit points in trading, combining support/resistance levels with volatility expectations. Here’s how you can approach the strategy for both **entry** and **exit** using these two tools:

### 1. **Murray Math Levels Overview**:
Murray Math (Murrey Math) levels provide key horizontal support and resistance lines, typically divided into 8 or 12 levels based on price ranges. These levels range from **0/8** to **8/8** (or sometimes from **-2/8** to **+2/8**), which can act as pivot points for price action:
- **0/8 and 8/8 levels**: Strong reversal points.
- **1/8, 7/8 levels**: Weak reversal points.
- **2/8, 6/8 levels**: Potential breakout zones.
- **4/8 level**: Mid-range level, acting as strong support or resistance.

### 2. **ADR (Average Daily Range)**:
ADR shows the expected range a currency pair or asset typically moves in one trading day. It's useful for determining where price is likely to move, based on its historical volatility. Knowing the ADR helps you avoid entering late into trends that may be nearing exhaustion, or can guide your exits before price hits strong daily limits.

### Combining **Murray Math** and **ADR** for Entry and Exit:

#### **Best Entry Points**:
1. **Near Strong Murray Math Levels with ADR Confirmation**:
- **Entry in Reversals**: Look for price to approach the **0/8** or **8/8** Murray Math levels. If the price is also nearing the daily ADR high or low (meaning price has already moved close to the expected daily range), these levels become even stronger. Enter the trade in the opposite direction:
- **Buy near 0/8** with ADR near its low.
- **Sell near 8/8** with ADR near its high.

- **Entry in Breakouts**: If price is approaching the **2/8** or **6/8** levels with momentum and still has room to move within the day's ADR, you can consider a breakout trade:
- **Buy on breakout above 6/8**, with price having room to move towards the ADR high.
- **Sell on breakout below 2/8**, with price likely to move towards the ADR low.

2. **Mid-range Pullbacks (4/8 Level)**:
- When the price pulls back to the **4/8** Murray Math level, which is the middle of the range and often acts as strong support/resistance, this is a great entry point during a trend. For this to work well:
- Ensure price hasn’t already exhausted its ADR; ideally, the price should have room to move further based on ADR.
- **Buy** if price is bouncing off 4/8 with an uptrend and there’s enough ADR left.
- **Sell** if price is bouncing down from 4/8 in a downtrend with room to hit the ADR low.

#### **Best Exit Points**:
1. **Exit near the Extremes of ADR**:
- If you entered on a reversal near 0/8 or 8/8 levels, you can exit when price reaches the other extreme of the ADR:
- **Exit Long**: If you entered long near 0/8 with ADR low, aim to exit near the ADR high or around the **6/8 or 7/8 Murray level**.
- **Exit Short**: If you entered short near 8/8 with ADR high, exit near the ADR low or the **2/8 or 1/8 Murray level**.

2. **Exit near Midpoints (4/8 Level)**:
- If price has moved to the **4/8 level** after trending from an extreme (like 0/8 or 8/8), this can be a natural exit point since the midpoint often acts as strong support/resistance. This is particularly useful if price is nearing or has exhausted its ADR, signaling a potential reversal or slowdown.

#### **Examples**:
- **Reversal Entry (Buy Example)**:
- Price hits the **0/8 Murray level**.
- ADR is near its daily low.
- Enter a **buy** at 0/8 level with a target at the **4/8** or **6/8 level**.
- Set a stop-loss below 0/8 or slightly outside the ADR low.

- **Breakout Entry (Sell Example)**:
- Price breaks below the **2/8 Murray level**.
- ADR indicates room for price to move towards its daily low.
- Enter a **sell** after the breakout, with a target at the **0/8 level** or ADR low.
- Stop-loss above the 2/8 or 3/8 level.

#### **Additional Tips**:
- **Confirm with Momentum**: Use an additional momentum indicator like RSI, MACD, or Stochastic to confirm entries at key Murray Math and ADR levels.
- **Set Realistic Targets**: Avoid holding positions too long if the price is nearing its ADR limits, even if it hasn’t reached a major Murray Math level.
- **Trailing Stops**: If price is moving favorably but you are uncertain of reaching the final target, use a trailing stop to lock in profits, especially near ADR extremes.

### Conclusion:
- **For Buying**: Best entry is around the **0/8 level**, especially if ADR is near its low.
- **For Selling**: Best entry is around the **8/8 level**, especially if ADR is near its high.
- Exit trades when price reaches its ADR limit or hits a significant Murray Math level (such as **4/8**, **6/8**, or **0/8**).

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Source of the explanation and indicator can be found on this post: post1295396298.html#p1295396298

And another great and resume explanation can be found on the post #8 of this amazing thread: post1294921826.html#p1294921826

Indicators alone are not part of the Holy Grail, but the discipline and education that we've been working on over the last few months helps with decision-making, so I suggest you also take a look at this in mind: post1295550630.html#p1295550630

And I've noticed that some of you are having trouble understanding what the 4th minidot is, so here's a summary of how I do it and how to protect our account using StopLoss, enjoy that one.
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This image is a complement to the post I shared with you earlier and I hope it's understandable to everyone. post1295551984.html#p1295551984

I hide exceptionally daily pl, because that's not the purpose, but I do like to see everyone who follows us being profitable and consistent. One topic i want to say one catch per trend doesn´t double your account, but sometimes is necessary more than 4 perfect entry, don't rush, wait for the perfect moment of your tendency and strength, because if you are in correction can be hard.

Trading for me isn't a game of egos, of copying or wanting to have what someone else has, it's an extra-ordinary journey that involves all our physical and cognitive abilities and makes us capable of anything, sharing ideas and vision with others is not a factor of judgment, but a factor of personal and collective growth, of what brings us here and now.

Stop for a while, if you're at an unprofitable yet or are in overtrading, stop for a while, don't trade, stay out the charts the time you need, and when you ready, observe all the elements with calm and write your rules, write a lot, don't make mistakes you've already made, train your mind and adjust your mindset daily to become a successful trader and happy everything you want to do in life, and you see the beauty of life start in the simple and free things, like an example breathe fresh air, watching the sunset, or the beauty of the moon on a starry night.



It's easy to read about the past, it's even easier to rewrite our future, everything is open and only depends on one factor. You, because there is no shortcut for success, one person gives to us the hand when we need, open eyes in certain circumstances and the next you have the power and knowledge to make a difference.

And that's all for now my friends, I wish you an excellent weekend, make the most of it, because next week will be even more spectacular than this one.

Smashed it