Murrey Math Levels

What are Murrey Math Levels?

Murrey Math levels are an algorithmic grid of nine horizontal lines, 0/8 through 8/8, dividing a reference frame of price into eighths, with overshoot lines at +1/8 and +2/8 above and -1/8 and -2/8 below. T.H. Murrey published the system in the 1990s as a mechanical restatement of Gann's habit of dividing price into eighths: the frame is derived from the recent high-low range, snapped to a scale that subdivides powers of ten into halves, quarters, and eighths to suit the instrument's magnitude. The grid therefore recomputes itself as new frames complete instead of depending on hand-drawn judgment.

Each line has a conventional role in Murrey's vocabulary: 0/8 and 8/8 are the strongest support and resistance; 4/8 is the major pivot separating bullish from bearish territory; 3/8 and 5/8 bound the congestion band where the system expects price to spend much of its time; 2/8 and 6/8 are strong reversal candidates; 1/8 and 7/8 are weak stall levels. These labels are conventions of the system, not verified statistics, and like Gann Square-of-9 levels the grid earns trust only where price actually reacts to it.

How traders use it

• As a range map: fade approaches to 2/8 and 6/8 back toward 4/8 while price rotates inside the frame, and stand aside or switch to breakout tactics when price closes beyond 0/8 or 8/8 into the overshoot octaves.
• As a bias line: above 4/8 favor longs toward 5/8 and 6/8, below it favor shorts, treating 4/8 the way midpoint traders treat the middle of any established range.
• As confluence: a Murrey line coinciding with a prior high, a volume shelf, or a session level carries more weight than the grid alone, and distance from 4/8 is sometimes read oscillator-style as a stretch measure.