User Guide: Murrey Math Institutional Frame

1. Introduction

The Murrey Math Institutional Frame indicator is a fractal support and resistance system that divides price movement into octaves (1/8). Unlike traditional indicators that chase price (lagging), Murrey Math attempts to predict the market's geometric structure based on historical volatility.

This indicator automatically adjusts its "Mathematical Frame" (Square in Time) to show you where price is mathematically probable to stop or reverse.

2. The Dashboard

Located in the upper-left corner, the panel offers an instant market diagnosis without needing to manually analyze every line.

• Status:

• 🟢 Uptrend: Price is solidly above the central 4/8 line.

• 🔴 Downtrend: Price is below the central 4/8 line.

• 🟡 Trading Zone (Range): Price is trapped between 3/8 and 5/8. This is where the market spends 40% of its time consolidating.

• 🔥 Euphoria / Panic: Price has broken the extreme bands (8/8 or 0/8). Maximum reversal alert.

• Current Zone: Numerically indicates which octave you are in (e.g., "Zone: 5/8 to 6/8").

• Next Targets:

• Next Res (Resistance): The exact price of the nearest ceiling and distance in points.

• Next Sup (Support): The exact price of the nearest floor and distance in points.

3. Line-by-Line Strategy (The "Musical Octave")

The market vibrates between these lines. Each has a statistical probability and associated mass psychology.

🔵 The Master Lines: 0/8 and 8/8 (Ultimate Support/Resistance)

• Name: Ultimate Support and Ultimate Resistance.

• Meaning: These are the "Floor" and "Ceiling" of the current frame. It is extremely difficult for price to break these lines on the first attempt.

• Strategy:

• If price touches 8/8: Take Profit on long positions. Look for sales if there is a reversal pattern. Bounce probability: 75%.

• If price touches 0/8: Take Profit on shorts. Look for aggressive buys.

🟣 The Pivot Lines: 2/8 and 6/8 (Pivot/Reverse)

• Name: Pivot Reverse.

• Meaning: These are the second strongest lines after the center. They act as guardians of the extremes.

• Strategy:

• Bounce: If price comes from the center (4/8) and bounces at 6/8, it is a clear sell.

• Breakout: If price breaks 6/8 with strength, it will almost certainly seek 8/8. It acts as a "magnet".

🟡 The Central Axis: 4/8 (Major Pivot)

• Name: Major Support/Resistance Pivot.

• Meaning: This is the most important line. It defines the trend. It is the "spine" of the market.

• Strategy:

• Above 4/8: Only look for "Buy the dip" opportunities.

• Below 4/8: Only look for "Sell the rally" opportunities.

• The Touch: If price touches this line for the first time in a while, it is massive support/resistance.

🟢 The Truth Zone: 3/8 and 5/8 (Trading Range)

• Name: Range Bottom (3/8) and Top (5/8).

• Meaning: The market spends 40-45% of its time here, deciding its next move.

• Strategy:

• Ping-Pong Style: Buy at 3/8 and Sell at 5/8 as long as there is no major news.

• The Breakout: If price stays above 5/8 for 10-12 candles, the market has accepted the high price and will seek 8/8.

⚪ The Weak Lines: 1/8 and 7/8 (Weak/Stall)

• Name: Stall.

• Meaning: These are weak lines. Price often pauses here briefly before continuing.

• Alert: If price stalls at 7/8 and cannot rise, it usually falls very fast and hard toward 4/8.

4. Extreme Zones (Extensions)

When the market enters panic or euphoria, it breaks the master square.

🟠 Overbought/Oversold: +1/8 and -1/8

• The movement is stretched. Start looking for scaled exits.

🔴 Extreme Reversal: +2/8 and -2/8 (The End of the Road)

• Reversal Probability: 95%.

• Meaning: Mathematically, it is almost impossible for price to stay here without readjusting the entire fractal.

• Action: Close everything. Do not buy here under any circumstances (at +2/8). Prepare for a violent correction against the trend.

5. Visual Color Summary (Flat Design)

The indicator uses a psychological color code for easy reading:

6. Pro Tip for Trading

"Look for Confluence": The Institutional Frame indicator is powerful on its own, but it is invincible when a major line (e.g., 4/8) coincides with other technical elements like a 200-period Moving Average or a classic Fibonacci level.

Good luck and happy trading!