Pivot Points CFDs Technical Analysis and Pivot Points CFDs Signals
This cfd indicator consists of a central pivot which is surrounded by Three resistance levels below and Three support levels above.
Initially these points were used by floor traders to analyze & trade the equities and futures cfd markets. This cfd technical indicator is considered to be leading rather than lagging.
Pivots provide a quick way for cfds traders to analyze the general cfd trend of how the cfd market is going to be moving during the course of the day. A few simple calculations are used to plot the resistance and support levels.
To calculate these points for the coming trading day is the previous day's
- high,
- low, and
- close cfds prices are used
The cfd trading day closes and this daily closing time is when the indicator is updated.
The 24-hour cycle for this indicator are calculated using a complex formula. The central pivot is then used to calculate the support & resistance levels as follows:
Resistance 3
Resistance 2
Resistance 1
Pivot Point
Support 1
Support 2
Support 3
CFDs Technical Analysis and Generating CFDs Signals
This cfd indicator can be used in different ways to generate cfds signals. The following techniques are the most common technical analysis:
CFD Trend Identification Signals
The central pivot is used by cfds traders to determine the general market cfd trend direction. The trades taken will only be in direction of the cfds trend.
- Buy signal - price is above the central point
- Sell signal - price is below the central point
CFD Price Breakout Signals
CFD Price break out trading signals are generated as follows
- Buy signal- is generated when the cfds price breaks upwards through the central point.
- Sell signal- is generated when the cfds price breaks-out downwards through the central point.
CFD Price Breakout
CFD Price Reversal CFD Signal
CFD Price reversals are generated as follows
Buy Trading Signal- when cfds price moves down towards one of the support area, then touches the support or moves slightly through it then quickly reverses and moves upwards.
Sell Trading Signal- when cfds price moves up towards one of the resistance level, then touches the resistance or moves slightly through it then quickly reverses and moves downwards.
CFD Price Reversal CFD Signal
Setting Stop-loss and Limit Profit Values
The central pivot and the other support and resistance levels are used by cfds traders to determine suitable stop loss and limit profit levels.
Setting Stop-loss & Limit Profit
If a buy is placed above the central point the Resistance 1 or Resistance 2 can be used to set the take profit level, & the Support 1 can be set as the StopLoss CFD Order Level for the trade.
To download Pivot points:
https://c.mql5.com/21/9/pro4x_pivot_lines.mq4
Once you download it open it with MQL4 Language MetaEditor, Then Compile the technical indicator by pressing the Compile Button & it will be added to your MetaTrader 4.
NB: Once you add it to your MT4, the technical indicator has additional lines named Mid-Points, to remove the additional lines open MQL4 Meta Editor(shortcut keyboard key - press F4), and change line 16 from:
Extern bool midpivots = true:
To
Extern bool midpivots = false:
Then Press Compile button again, & it will then appear as is exactly shown on this website.
