Gold Trend Indicators

Pivot Points are used by traders to find support and resistance zones based in previous day's price action.

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

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

• Daily pivot points levels are calculated from the previous day's high, low, close

This indicator is displayed & shown below

Analysis in Gold Trading

The central pivot point 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 substantial market movements.

This 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, and vice versa. However, pivot levels are short term trend indicators, helpful 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 helpful tool which can be used to calculate the levels that are likely to cause price movement.

These pivot points should be used in conjunction with other methods of technical analysis such as Moving averages, MACD and stochastic oscillator trading indicator.

This indicator can be utilized in many various 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 indicators, volatility measurements, the central point may be useful in determining/figuring out the general trending market direction of the price. Trade Positions are only opened in the direction of the market trend. Buy signal occurs only when the market is above the central pivot points & 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 (generally Resistance Zone 1). A bearish signal occurs when the market breaks out down through the center points or one of the support levels (generally Support Zone 1).

XAU/USD Trend Reversals:

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

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

Stop Loss and/or Limit Profit Values Determined by Support/Resistance: This indicator may be potentially help-ful in determining suitable stoploss and/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 Moving Average Cross Over System

A good indicator to combine and trade reversal signals is the MA crossover 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 market direction.

MA Cross over Method and Technique

MA 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 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 MT4.

NB: Once you as a trader add it to your Meta Trader 4, trading indicator has additional lines named and marked Mid Points, to remove the extra lines open MQL4 Language MetaEditor(short-cut keyboard 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 and be shown such as shown on this web site.

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