Potential Breakout Indicator

Pivot Support Resistance Indicator MetaTrader 4 is a set of indicators used to determine potential turning points or potential commodity trading breakout points, also known as "pivots" or pivot point. These Pivot Support Resistance Levels are calculated to determine points which the commodity trend could change from a "bullish" to "bearish market trend or from a "bearish" to "bullish trend." Commodities traders use these Pivot Support Resistance Zones as zones of support and resistance.

These Pivot Support Resistance Levels are calculated as the average of the high, low & close from the previous session:

Commodity Trading Pivot Point = (High + Low + Close) / 3

Commodity Trading day traders use the calculated pivot support resistance levels to determine levels of entry, stop loss level and profit taking level, by trying to determine where the majority of commodity traders might be doing the same thing.

A pivot-point is a commodities price level of significant commodities trading technical analysis that is used by commodity traders as a predictive or leading indicator of commodities price movement. Pivot Support Resistance Indicator is calculated as an average of significant commodities prices (high, low and close commodities price) from the commodity market prior trading period. If the commodities prices in the following trading period trade above the central pivot point it is interpreted as a bullish commodity trend, whereas if commodities price trade below the central pivot point is interpreted as bearish.

The central pivot-point is used to calculate additional levels of support resistance, below & above central pivot - by either subtracting or adding commodities price differentials calculated from previous day trading ranges.

A pivot-point & the pivot support resistance levels are often turning points for the direction of commodities price movement.

• In an upward commodity trend, the pivot point indicator and the pivot resistance levels - represent a ceiling level for the commodities price - if commodities price goes above this level the upward commodity trend is no longer sustainable and a commodity trend reversal is likely to happen.

• In a downwards commodity trend, the pivot point and the pivot support levels may represent a low for commodities price level or a resistance to further commodities price decline.

Central pivot can then be used to calculate the support resistance levels as follows:

Pivot Support Resistance Indicator MT4 consist of a central pivot point level surrounded by three support levels below it and three resistance areas above it. Pivot Support Resistance Levels provide a quick method for commodities traders to get a general idea of how the commodity market will be moving during the course of the day by using a few simple calculations based on the previous commodities price close - Previous Day Close Breakout Strategy and Market Open Trading Strategies.

Pivot Support Resistance Indicator MT4 is considered as a leading commodity technical indicator rather than a lagging indicator. All that is required to calculate the pivot support resistance levels for the upcoming (current) day is the previous day high, low, and close commodities prices. The 24-hour cycle pivot support resistance levels in this indicator are calculated according to the following formulas:

Central pivot can then be used to calculate the support resistance levels as follows:

Resistance 3

Resistance 2

Resistance 1

Pivot Point

Support 1

Support 2

Support 3

Potential Breakout Commodity Indicator - Pivot Support Resistance Indicator MT4 Technical Indicator