Levels & geometryMurrey Math Lines
T.H. Murrey's grid of support and resistance lines that splits a price range into eighths.
Works best in ranging marketsEngine-computed on a fixed sample series
What it is
Murrey Math Lines are a grid of horizontal support and resistance levels devised by T. H. Murrey, who adapted the market geometry ideas of W. D. Gann into a simpler, rule-based system. The core concept is that price movement tends to respect a natural grid when a relevant price range is divided into eight equal parts, called octaves or eighths, running from 0/8 at the bottom to 8/8 at the top. Each of these lines is assigned a distinct role in Murrey's framework, so the grid is not just evenly spaced lines but a map of where price is expected to pause, reverse, or accelerate. For a beginner, Murrey Math Lines offer a ready-made set of support and resistance levels without having to hand-draw them, based on the premise that markets move in predictable fractions of a range. It is a geometric, structure-imposing approach rather than a calculation on recent price momentum.
How it is calculated
Building the grid begins by determining a suitable price range for the instrument, which Murrey derived from a scaling process based on powers of two and ten to fit price into a framed square. Once that base range and its top and bottom are set, the range is divided into eight equal intervals, and horizontal lines are drawn at each eighth from 0/8 up to 8/8. Additional overshoot lines are often placed above and below the main grid — such as +1/8 and +2/8 above 8/8 and -1/8 and -2/8 below 0/8 — to mark extreme extensions beyond the normal range. The spacing is therefore uniform within the chosen frame, but the placement of that frame depends entirely on how the base range and scale are selected. Because different scaling choices produce different frames, two traders can generate different Murrey grids on the same chart, which is why the setup step matters as much as the lines themselves.
Reading it, step by step
Each Murrey line carries a specific meaning, and reading the grid means knowing those roles. The 4/8 line is the most important — the major pivot and equilibrium point, the balance line around which price is expected to gravitate, so holding above it is bullish and below it bearish. The 8/8 and 0/8 lines are the ultimate resistance and support, the top and bottom of the range where moves are considered overextended. The 2/8 and 6/8 lines are strong reversal zones where price frequently turns, making them favored spots to look for tradeable pivots. The 3/8 and 5/8 lines bracket the central trading zone where price spends much of its time, while the 1/8 and 7/8 lines are weaker levels often associated with overshoot and quick reversals. Price is expected to trend between these octave lines and to hesitate or reverse at them, with movement to 8/8 or 0/8 signaling overextension of the range.
Best timeframes and settings
Murrey Math Lines can be applied across timeframes, from intraday charts for short-term traders to daily and weekly charts for swing and position work, with the frame recalculated to suit the range relevant to that horizon. The critical setting is the base range and scale used to place the grid, since these determine where every line falls; choosing a frame that matches the instrument's recent trading range makes the lines more likely to align with actual support and resistance. Because the framework depends on how the base range is chosen, different settings produce different grids, and part of using the tool well is selecting a frame that the market has demonstrably respected. There is no responsiveness-versus-noise dial in the usual sense, because the lines are static once drawn; instead the trade-off is between a tightly fitted frame that hugs recent action and a broader frame that captures a larger structure. Periodic re-framing is needed as price migrates out of the original range.
When and where to use it
Murrey Math Lines are most useful in ranging or rotational markets, where price genuinely oscillates between levels and the octave grid can capture the turns at the 2/8, 4/8, and 6/8 lines. They give range traders a structured set of reversal and target levels and give all traders a quick reference for where support and resistance may lie. They are less reliable in strong, sustained trends, where price can slice through octave lines without the expected hesitation, and where the grid may impose structure the market is ignoring. They apply to any liquid asset class, but their quality depends heavily on choosing an appropriate frame for that instrument. Avoid treating the lines as guaranteed turning points, and be especially wary in trending conditions or after a genuine breakout, when the old frame no longer describes where price is trading and a new one is needed.
Strategies that use it
The range-trading strategy fades reversals off the key lines: you look to buy near 0/8 or 2/8 support and sell near 8/8 or 6/8 resistance, placing stops just beyond the next octave line so risk is defined by the grid itself. The bias strategy uses the 4/8 line as a regime divider, taking a bullish stance while price holds above 4/8 and a bearish one while it trades below, and using the line as the pivot for entries and exits. A third strategy targets the strong reversal zones at 2/8 and 6/8, entering on a reversal signal at those lines with a tight stop to the adjacent octave and a target at the 4/8 equilibrium or the opposite band. In each case the octave lines supply the levels for entries, stops, and targets, and a decisive break and hold beyond an expected reversal line is treated as a warning that the range structure is failing and a trend may be starting.
Combining it with other indicators
Murrey Math Lines work best alongside confirmation tools rather than alone, since they mark potential levels but not the moment price will actually turn. Candlestick reversal patterns forming right at a key line such as 2/8, 4/8, or 6/8 give a precise, bar-level trigger to act on the level. Momentum oscillators like RSI or the Stochastic confirm whether price arriving at an octave line is overbought or oversold and therefore likely to reverse. Volume can validate a bounce or a break at a line, distinguishing a genuine reversal from a level that is about to give way. Other level-based methods such as pivot points or Fibonacci retracements often cluster near Murrey lines, and where two independent methods mark the same price, that confluence strengthens the level. Combining the static grid with these dynamic reads compensates for the framework's tendency to impose structure the market may not honor.
Where it fails
The most fundamental weakness is that the grid depends on how the base range and scale are chosen, so different settings yield different lines and there is no single objective grid, which invites curve-fitting and disagreement. Like all fixed-geometry systems, Murrey Math can impose structure the market does not actually respect, and price will sometimes ignore the octave lines entirely, especially in strong trends where it cuts through 6/8 or 8/8 without pausing. Treating the lines as certain turning points rather than probable zones is the classic mistake, and it leads to fading breakouts that keep running. When a genuine trend or breakout carries price out of the original frame, the old lines become irrelevant until you re-frame, and traders who keep using a stale grid are reading meaningless levels. The tool is a context aid, not a mechanical system, and it fails when used as though the market is obligated to obey its geometry.
A worked example
Suppose you frame a stock whose recent range places 0/8 at 90 and 8/8 at 98, so each octave is one point apart: 1/8 at 91, 2/8 at 92, 4/8 equilibrium at 94, 6/8 at 96, and so on. Price has been rotating within this range, and it declines to 92, right at the 2/8 strong-reversal line, where a bullish hammer candlestick forms and RSI reads oversold near 30. You buy at 92 with a stop just below the 1/8 line at 91, targeting the 4/8 equilibrium at 94 as a first objective and the 6/8 line at 96 beyond it. Price bounces off 2/8 as the grid anticipated, rallies through 4/8 — which it holds above, confirming a bullish bias — and reaches 96 at the 6/8 reversal zone, where you take profit as momentum stalls. The trade used the 2/8 line for the entry and stop and the 4/8 and 6/8 lines for bias and targets, but you remain aware that had price instead sliced straight through 92 and 91, the range frame would have been failing and you would have stood aside to re-frame.