A method for forming and applying retroreflective pavement markings comprising the steps of a) spraying the area with a hot epoxy binder, b) depositing particles of a microcrystalline ceramic element having a high refractive index onto the fresh epoxy binder, c) depositing relatively large spherical glass beads onto the fresh epoxy binder, and d) depositing relatively small spherical glass beads onto the fresh epoxy binder. The small beads provide high reflectivity in daytime and at night on dry pavement. The large beads provide superior reflectivity at night on damp pavement. The ceramic element particles provide high reflectivity when wet and during heavy rain. Where the pavement is subject to snowplowing, the marking may be inlaid in a recessed area in the pavement, the recess being about 100 mils deep, and the wet epoxy layer being about 20 mils thick.