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Gold Trend Indicators

Pivot Points are used by traders to find support & resistance zones based on the previous day's price action.

This indicator is a very useful tool that use the previous bars' highs, lows and closings to project support and resistance zones for future bars.

This indicator provides an idea of where key support and resistance should be. Place the pivot points on your charts & price will bounce off one of these levels. These levels are used by traders to determine market tops, market bottoms or trend reversals.

  • Daily pivots points are calculated from previous day's high, low, close

This indicator is shown below

How to Day Trade Using Pivot Points Levels and Reversal Signals - Trend Technical Indicators - Trend Indicators

Analysis in Gold Trading

The central pivot itself is the primary level, which is used to determine the market trend

The other support and resistance zones are also important in calculating levels that can generate significant market movements.

This trading indicator can be used in two ways

The first way is for determining overall trend: if the pivot point is broken in an upwards movement, then the market is bullish, & vice versa. However, pivot levels are short term trend indicators, useful only for one day until they need to be recalculated.

The second method is to use these points to enter and exit the markets. This indicator is a useful tool which can be used to calculate the levels that are likely to cause price movement.

These points should be used conjunction with other forms of analysis such as Moving averages, MACD & stochastic oscillator trading indicator.

This indicator can be utilized in many different ways. Here are a couple of the most common methods for utilizing them.

Gold Trend Direction: Combined with other trading analysis methods such as oversold/over-bought oscillators trading indicators, volatility measurements, the central point may be useful in determining the general trending direction of the market. Trades are only opened in the direction of the market trend. Buy signal occurs only when the market is above the central pivot points and sell trading signal occur only when the market is below the central pivot points.

Gold Price Breakouts: A bullish trading signal occurs when the market breaks up through the center pivot points or one of the resistances (typically Resistance Zone 1). A bearish trading signal occurs when the market breaks out down through the center points or one of the supports (typically Support Zone 1).

XAUUSD Trend Reversals:

  • A buy signal forms when price moves toward a support level, gets very near to this point, touches this point, or moves only slightly through this point, and then reverses and moves back in the opposite market direction.

  • A sell signal forms when price moves toward a resistance level, gets very near to this point, touches this point, or moves only slightly through this point, and then reverses & moves back in the opposite market direction.

Stop Loss and/or Limit Profit Values Determined by Support/Resistance: This indicator may be potentially help-ful in determining suitable stoploss &/or limit profit placements. For examples, if trading a long break out above the Resistance 1 it may be reasonable to position a stoploss.

Combining with MA Cross Over System

A good indicator to combine and trade reversal signals is the MA cross-over which can be used to confirm the direction of a reversal setup.

An investor then can open an order once these two indicators give a signal in the same direction.

Moving Average XAUUSD Crossover XAUUSD Strategies

MA Cross over Technique

Moving average crossover method that can be combined with this indicator to come up with a trading system for generating buy & sell signals.

To download this Pivot points Indicator:

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

Once you download the technical indicator. Open it with the MQL4 Language Meta Editor, Then Compile the indicator by pressing the Compile Button Key & it will be added to your MetaTrader 4.

NB: Once you add it to your Meta Trader 4, trading indicator has additional lines named Mid Points, to remove the extra lines open MQL4 Language Meta-Editor(shortcut key-board key - press F4), and change line 16 from:

Extern bool midpivot = true:

To

Extern bool midpivot = false:

Then Press Compile again, & the technical indicator will then appear as shown on this web site.

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