Murrey Math with VSA Strategy For MT4
Please note: This strategy was publicly published in the trading community and is free to use. We do NOT make an attempt to decide if this strategy is profitable or not, because we know that the major factors regarding trading results are the skills/experience of the trader who executes the strategy. Therefore, we are mainly explaining the components and rules of the strategy. If applicable, we are highlighting advantages, disadvantages and possible improvements of the strategy.
The Murrey Math with VSA Strategy For MT4 is a reversal trading strategy based on Math Murrey Lines, VSA Signals, and VSA MA3 Math Murrey Channel indicators. The strategy has two variations as it comes with two different templates. The first variation of the strategy uses the Math Murrey Lines and VSA Signals indicator. On the contrary, the second variation of the strategy uses the VSA Signals indicator and VSA MA3 Math Murrey Channel indicator.
The first variation of the strategy is much simpler to understand compared to its second variation. The second variation is much more advanced and requires intermediate trading skills. However, you can learn to use both templates by using trading strategies in the demo environment.
According to the inventor, the Murrey Math with VSA Strategy For MT4 supports various trading styles, such as scalping, day trading, swing trading, and positional trading. Therefore, we can use the strategy in any timeframe starting from the M5 to the Weekly timeframe. Regarding the selection of trading instruments, we should trade the Forex major currency pairs. Once you become skilled, we can trade any financial instrument with the help of this trading strategy.
In this article, we will discuss the key steps to take the long and short trade. Let's get into the details.
The Murrey Math with VSA Strategy For MT4 – Overview
The Murrey Math with VSA Strategy For MT4, as discussed above, has two different variations.
The first variation of the strategy uses the following three indicators.
Math Murrey Lines: It is an indicator that draws 13 essential pivot lines according to Murrey Math’s calculation. According to this system, out of these 13 Murrey Math Lines, we should be using the topmost and bottom-most 3 Murrey Math lines, also known as overbought and oversold Murrey Math Lines, namely 8/8P, +1/8P, +2/8P, and 0/8P,-1/8P,-2/8P, respectively.
VSA Signals Indicator: It is an advanced indicator, also known as Volume Spread Analysis (VSA). It scans potential trade signals based on Volume and market momentum. The large blue color dot represents gives us an indication that the new bearish trend might start to dominate the market.
Similarly, the large red color dot represents Buying Signal. So, we should be looking for the potential long trade setup near the critical support.
Symbol Changer: It is more like a trading tool than an indicator, and thus it doesn’t play any crucial role to improve your trade timing. The data is displayed in a separate window which shows the available trading instruments.
The second variation of the strategy uses the VSA Signals, VSA MA3 Math Murrey Channel, and Symbol Changer indicators. We have explained the role of VSA Signals and Symbol Changer indicator play. Hence, we will only discuss the role of the VSA MA3 Math Murrey Channel indicator.
VSA MA3 Math Murrey Channel indicator: It is a multi-functional indicator that performs multiple tasks. For instance, it can be used for drawing an ascending/descending channel, displaying information about the Average Daily Range in the right top corner, drawing 13 essential Math Murrey Lines, and finally, plotting VSA MA3 histogram in a separate indicator window.
A buy signal is generated when the VSA MA3 histogram’s green bar is bigger than the red bar. If possible use, the price action confirmation signal to execute the long trade.
Similarly, a sell signal is generated when the VSA MA3 histogram’s red bar is bigger than the green bar. While taking the short trade, lower down the risk exposure as it will protect your trading capital.
The Murrey Math with VSA Strategy For MT4 – Buy Setup (First Variation)
Long trade setup:
- The price should trade in the following oversold Math Murrey Lines – 0/8P, -1/8P, -2/8P.
- The VSA Signals indicator should create a large blue color dot signal succeeded by a small blue color square signal.
After checking these conditions, we may open a new long trade with low risk.
Take Profit:
- The take profit level should be determined by analyzing the resistance level. We should maintain a minimum 1:2 risk to reward ratio while taking the long trade.
Stop Loss:
- The stop loss level should be determined by analyzing the nearest resistance level.
The Murrey Math with VSA Strategy For MT4 – Sell Setup (First Variation)
Short trade setups:
- The price should trade in the following overbought Math Murrey Lines – 8/8P, +1/8P, +2/8P.
- The VSA Signals indicator should create a large red color dot signal succeeded by a small red color square signal.
Check the necessary conditions before you take the short trade.
Take Profit:
- We should determine the take profit by analyzing the nearest support level. In some cases, the most recent swing low can be used to set the TP.
Stop Loss:
- We should be setting the stop loss above the resistance level. Try to use the major resistance level as it will improve your signal quality.
The Murrey Math with VSA Strategy For MT4 – Buy Setup (Second Variation)
Long Trade setups (second variation):
- The first two buying conditions are similar to that of the first variation, and the only addition is that we will consider buying only if the VSA MA3 Math Murrey Channel indicator creates an ascending channel.
- The VSA MA3 Math Murrey Channel indicator should give you a buy signal.
Execute the long trade after checking these conditions.
Stop-loss and Take profit:
We should be using the support and resistance level to determine the SL and TP.
The Murrey Math with VSA Strategy For MT4 – Sell Setup (Second Variation)
Short trade setups (second variation):
- The first two selling conditions are similar to that of the first variation, and the only addition is that we will consider selling only when the VSA MA3 Math Murrey Channel indicator creates descending channel.
- The VSA MA3 Math Murrey Channel indicator should create a sell signal.
Execute the short trade after checking these conditions.
Stop-loss and take profit :
We should be using the support and resistance level to determine the SL and TP.
Summary:
Learning the core functions of this trading method might take some time as we have to deal with two variations. However, if you feel comfortable with one variation, feel free to use that one only. Test this trading strategy in the practice trading account and make yourself comfortable.
Note that, you should be expecting few losing trades while using this trading method. Even if you analyze the data properly, you cant avoid the losses. So, trade with strong risk management plan to protect your trading capital.
Download the complete system description and the files here:
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