Mathematics and Trading: How the Murrey Math System Works (1995)

Murrey Math, a geometric approach to trading, ties price movements to octaves derived from Gann’s theories. Published in 1995 by T. Henning Murrey, it extends W.D. Gann’s octave concept and uses lines drawn from 0/8 to 8/8 to form octave bands, with +1/8, +2/8, and +3/8 extensions marking outsized moves. The system analyzes on daily and weekly charts, targeting US stocks and indices, and has expanded to FX and cryptocurrencies; options traders also employ Murrey Math Lines. Key levels include +3/8, +2/8, +1/8 for potential reversals, 8/8 as resistance, and 4/8 as a central pivot, with 3/8–5/8 constituting the Normal Trading Area.

Proponents compare Murrey Lines with pivots and use the framework to anticipate reversals based on historical octaves, emphasizing structured, rule-based analysis rather than traditional indicators.