Trade Gold Trading

Pivot Points Trading Technical Analysis and Pivot Points Signals

This indicator consists of a central pivot which is surrounded by 3 resistance levels above and 3 support levels below.

Initially these points were used by floor traders to analyze & trade the equities & futures exchange markets. This indicator is considered to be leading rather than lagging.

Pivots provide a quick way for traders to analyze the general trend of how the 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 prices are used

The trading day closes at 5:00PM EST this daily market closing time is when the technical 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 areas as follows:

Resistance 3

Resistance 2

Resistance 1

Pivot Point

Support 1

Support 2

Support 3

Forex Analysis and Generating Signals

This indicator can be used in different ways to generate signals. The following methods are the most common technical analysis:

Trend Identification Signals

The central pivot is used by traders to determine the general market trend direction. The trades taken will only be in the direction of the market trend.

• Buy signal - price is above central pivots point
• Sell signal - price is below central pivots point

Price Breakout Signals

Price breakout signals are generated as follows

• Buy signal - is generated when price breaks-out upwards through the central point.
• Sell signal - is generated when price breaks out downward through the central point.

Price Breakout

Price Reversal Signal

Price reversals are generated as follows

Buy Signal- when price moves downward toward one of the support level, then touches support or moves slightly through it then quickly reverses & moves upward.

Sell Signal- when price moves upward toward one of the resistance area, then touches resistance or moves slightly through it then quickly reverses & moves downward.

Price Reversal Signal

Setting Stoploss & Limit Profit Values

The central pivot & the other support & resistance zones are used by traders to determine suitable stop loss & limit profit levels.

Setting Stoploss & 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, and the Support 1 can be set as a Stop Loss Level for the trade.

To download Pivot points Indicator:

https://c.mql5.com/21/9/pro4x_pivot_lines.mq4

Once you download the indicator. open it with the MQL4 Language Meta-Editor, Then Compile the technical indicator by pressing Compile Button and it'll be added to your MetaTrader 4.

Note: Once you add it to your MetaTrader 4, the indicator has additional lines named Mid Points, to remove these additional lines open the MQL4 Language Meta Editor(shortcut keyboard key - press F4), and change line 16 from:

Extern bool midpivot = true:

To

Extern bool midpivot = false:

Then Press Compile again, & it'll then appear as exactly shown on this web site.