MMLE [Orderflowing]

9 nov 2023

MMLE | Murrey Math Lines Extended | Support and Resistance |Auto-Readjusting
Built using Pine Script V5.

Introduction
The MMLE (Murray Math Lines Extended) Indicator is a tool designed to improve the classic Murrey Math Trading Lines.
It provides traders with a detailed framework of support and resistance, calculated over a user-defined # of bars to use period.

Inspiration and Evolution
Inspired by the utility of Murrey Math Trading Lines as a means to identify key levels, the MMLE extends this concept with additional features for a better visual aesthetic and customizable approach.
It's made to offer a clearer picture of potential turning points in the asset.

Core Functionality
The MMLE indicator dynamically calculates horizontal lines representing potential support and resistance areas based on the highest high and the lowest low over a specified number of bars.
These levels serve as a help for navigating market structure and underlying price action.

Core Customization
Traders can fit the MMLE indicator to their trading needs with several input options:

• Number of Bars: Define the period for calculating high and low extremes. (32-512 bars in increments of 32 bars)
  
• Level Display: Choose to display levels, include middle levels, or solely the pivotal zero level and support/resistance for a customized chart view.
  
• Price Wicks: Option to include wicks for sensitivity to price spikes.
  
• Multi-Timeframe Input: Option to draw from a different timeframe as the basis.
  

Detailed Level Analysis
The MMLE breaks down the price range into increments, creating these levels:

• Upper Extremity Levels: Highlight overbought conditions and potential reversal zones.
  
• Lower Extremity Levels: Suggest oversold conditions and potential bounce areas.
  
• Central Pivot Level: The 0 level (level 4/8) acts as a market equilibrium point.
  
• Intermediate Levels: Offers additional support and resistance.
  

Examples:
Only Support & Resistance Levels:

Include 0 Level:

Include Intermediate/Middle Levels:



Visual Clarity and Interpretation
Distinctive color coding and line styles provide visual cues:

• Red Lines: Upper resistance and potential reversal points.
  
• Green Line: The pivotal 0 level, indicating market balance.
  
• Blue Lines: Lower support and potential recovery areas.
  
• Grey Lines: Minor support or resistance.
  

Multi-Timeframe
The MMLE indicator is engineered with multi-timeframe capability, allowing traders to select a different timeframe from which to draw the levels.
This feature enables a comprehensive analysis across various time periods.
If a trader wanted to use the 3-hour period MMLE lines while watching the price action on a 4-hour period. That is possible with this feature.


Trading Style
The MMLE is for various trading styles, from day trading to swing trading, providing better levels for precise entry and exit points or broader market structure analysis.

Usage and Applications
Utilize the MMLE to:

• Pinpoint potential reversal zones and price extremes.
  
• Set strategic stop placements and profit targets.
  
• Complement and enhance existing trading strategies with detailed support and resistance levels.
  

From extensive testing the best levels for most used timeframes are 32/64 | 128/256.
Please make sure you do your own testing with the asset of your choice.

The Value
it's an innovative extension that provides significant value through its detailed level calculations and customization options.

Customization and User Input
The MMLE respects the individual trader's strategy, offering settings for the source period, inclusion of price wicks, and level display preferences.

Conclusion
The MMLE goes beyond traditional support and resistance indicators by offering a customizable, detailed view of market structure.
It's a tool designed not to replace but to improve your existing trading strategy, providing a layer of depth to your market analysis.

7 apr 2024

Note di rilascio

V1.1 - Reworked Primary Logic.
Plots the current Murrey Math Lines and does not keep the historic lines on the chart.
Automatically adjusts based on the user input # of bars.

17 feb

Note di rilascio

V1.2 - Pine Script™ v6 Update